Analysis of the child supplementary education market in India

The relevance of research

The market of additional children's education in this study is understood as a complex of educational institutions and organizations that form the offer of educational services in the market

Purpose of the study

Analysis of the state of the market of additional children's education, assessment of the market size, analysis of competitors, as well as identification of factors affecting the market of additional children's education

Content

Part 1. Overview of the Indian market of additional children's education
1.1. Main characteristics of the market
1.2. Dynamics of the market volume of additional education services for children in 2014-2018 Potential market capacity
1.3. Main trends, drivers, threats to the services market
1.4. Analysis of sectoral indicators of financial and economic activity
1.5. The pace of technological change and product innovation
1.6. Competition from substitute services
1.7. Assessment of factors affecting the market
Part 2. Competitive analysis in the market
2.1. Stage of life cycle of the market of additional education
2.2. Market saturation
2.3. Degree of integration in the field (branch) of education
2.4. Major players in the market
2.5. Market shares of the largest competitors
2.6. Profiles of the main market participants
Part 3. Analysis of the consumption of children's additional education services
3.1. Estimation of the volume of consumption of additional children's education services per capita
3.2. Service segmentation
3.2.1. The degree of differentiation of the market of additional education for children
3.2.2. The compactness of the location of the main companies in the states of India
3.3 Description of consumer preferences
3.4. Internal indicators of the current state of organizations of additional education for children 
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the market for additional children's education until 2023
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators

Research excerpt

Part 1. Overview of the Indian market of additional children's education 
1.1. Main characteristics of the market
The subject of this study is the market of additional children's education. The market of additional children's education in this study is understood as a complex of educational institutions and organizations that form the supply of educational services on the market, the number of consumers that form the demand on the market, as well as the relationship that arises between educational institutions and consumers.
Additional education of children is a type of educational activity aimed at the comprehensive satisfaction of the educational needs of a person in intellectual, spiritual, moral, physical and professional improvement. From a market point of view, additional education is a service provided by state and municipal organizations of additional education, as well as organizations that have received a license to conduct educational activities for additional education of children.
In accordance with the legislation of India, according to the form of subordination, organizations of additional education for children are established as: 
Federal state - established by the federal authorities; 
State - formed by the states of India; it can be various school circles and additional sections; 
Municipal - are created and work at the expense of the city authorities;
Non-state - organized privately by individuals, commercial, religious, public or other states of economic activity. 
The order of the Ministry of Education and Science of India dated June 26, 2012 No. 504 distinguishes the following types of educational organizations (applies to public institutions and is advisory for private institutions):
centers of additional education for children, development of creativity of children and youth, creative development and humanitarian education, children's creativity, extracurricular activities, children's (youth) technical creativity, children's and youth tourism and excursions, aesthetic education of children, children's and youth center, children's (teenage) center, children's environmental center, children's marine center, children's (youth) center, children's health and education (profile) center;
palaces of children's (youthful) creativity, creativity of children and youth, student youth, pioneers and schoolchildren, young naturalists, sports for children and youth, artistic creativity (education) of children, children's culture (arts);
houses of children's creativity, childhood and youth, student youth, pioneers and schoolchildren, young naturalists, children's (youth) technical creativity, children's and youth tourism and excursions, artistic creativity (education) of children, children's culture (arts);
stations for young naturalists, children's (youth) technical creativity, children's and youth tourism and excursions, children's ecological station;
children's art schools (including various types of arts);
children's and youth sports schools;
specialized children's and youth sports school of the Olympic reserve;
youth sports-adaptive schools;
specialized adaptive children's and youth sports schools;
adaptive youth physical training clubs.
...
Diagram 2. Dynamics of the number of specialized organizations of additional education for children from 2014-2018

1.2. Dynamics of the market volume of additional education services for children in 2014-2018 Potential market capacity
Let us consider the dynamics of the volume of the market for additional education for children in India.
...
Diagram 4. Dynamics of the volume of the market for additional children's education services, billion Rs., 2014-2018

Speaking about the forecast for the growth of the market for additional education services for children, it should be taken into account that the cost of additional educational services in Europe varies …

1.3. Main trends, drivers, threats to the services market
The main trends in the market of additional education for children in India
...
Market Drivers
...
Market Threats
...

1.4. Analysis of sectoral indicators of financial and economic activity
The financial position of organizations in the market of services for additional children's education is characterized as relatively stable (Diagram 6), so the gross margin in the industry in 2018 amounted to …%...
...
Speaking about the ability of organizations in the market of additional education for children to repay current short-term liabilities at the expense of their own current assets ...
Analysis of investments in fixed capital in the field of additional education. 
Diagram 8. Dynamics of investments in fixed assets

The dynamics of absolute liquidity for organizations in the field of additional education tends to …, while in 2014-2015. the value of the indicator for the sector of additional education exceeded the average Indian values.
...
Since 2014, the provision of own working capital in organizations in the field of additional education for children tends to …
...

1.5. The pace of technological change and product innovation
The concept of the development of additional children in India identifies the main changes-challenges in the system of additional education for children:
• Changes in the economic structure (“innovative economy”, “4th industrial revolution”, “digital economy”, “robotics”, “development of creative industries”, “experience economy”), forms of employment (DIY, self-employment) and professions 
• Technological (use of modern technologies in everyday life and professional activities) 
• Socio-political (patriotism, social stability and civic solidarity) 
• Transformation of the demand of families and children 
• Changes in motivation, abilities, patterns of behavior and communication of children

1.6. Competition from substitute services
The service of additional education for children is an independent market product with an established system of consumers and organizations (institutions) that provide these services. 
...

1.7. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, demand.
Economic
Change in Gross Domestic Product - allows you to track the dynamics of the total market value of products and services that are produced in the country's market, and allows you to evaluate the total domestic production in the country.
...
Demographic
One of the most important factors influencing the market is the demographic indicators in India: the population of India, as well as the number of children, are the key consumers of the services of the additional children's education market.
...
technological
...
Diagram 18. Provision of additional education organizations with computer equipment

...
Political and legal
Policy of the Government of India in the field of education. Currently, at the level of the Government of India, a number of fundamental regulatory legal documents aimed at the development of education, including additional education for children, have been adopted and are in force:
...
Licensing of educational activities. 
Personalized additional education for children is a system that provides for the consolidation of the state's obligations to pay for the education in which the child is primarily interested. The introduced system involves the issuance of a personalized certificate to each child. 
...
Table 1. STEP-analysis of factors influencing the market of additional education for children

In general, macro-environment factors have an impact on the development of the market for additional education for children…
...

Part 2. Competitive analysis in the market
2.1. Stage of life cycle of the market of additional education
The development of the market of additional children's education in India is characterized by the following stages:
The first stage is the emergence...
The second stage is the formation ...
The third stage is development...
The fourth stage is the flowering ...
The fifth stage is the crisis ...
The sixth stage is stabilization, a way out of the crisis ...
The market for additional children's education is currently experiencing the second stage of growth ...
The following factors testify to the re-growth of the market of additional children's education:
...

2.2. Market saturation
Speaking about the saturation of the market of additional education for children, it is necessary to note an important indicator ...

2.3. Degree of integration in the field (branch) of education
The basic trend in the development of the education system is currently the integration of additional and general education as a tool for creating a single space for the implementation of federal state educational standards.
With the adoption of the Federal State Educational Standard, the role of the system of additional education for children increases significantly. It combines education, training, supports and develops talented and gifted children, forms a healthy lifestyle, carries out the prevention of neglect, delinquency and other asocial phenomena in the youth environment, implements programs of spiritual, moral and patriotic education, scientific, creative and social - project activities.
...
Consider the existing forms of integration in modern education:
The form of integration within the framework of the interaction of classroom and extracurricular activities does not imply going beyond the educational organization or its structural unit: ...
The form of integration within the framework of the interaction of classroom, extracurricular activities and the work of associations of additional education for children is implemented within the educational organization or its separate structural unit and is also quite common. …
The form of integration, within the framework of which an institution of additional education for children (the Palace or the Center for Children and Youth Creativity) joins the educational organization - the form is carried out, first of all, on a territorial basis, therefore, it is purely organizational, but also carries a number of positive aspects. …
The form of integration, within the framework of which an educational organization engages specialists from cultural institutions and additional education for cooperation on a contractual basis, allows expanding the possibilities of an educational organization in the implementation of additional education for children. …
The form of integration, within the framework of which an educational organization builds a system of stable relationships ""school - university"" on a contractual basis, is the most promising for the implementation of the integration of general and additional education of children. …
...
The main entry barriers for new market participants are:
...

2.4. Major players in the market 
The Indian market for additional education for children is formed by domestic organizations, which are represented by: 1. private companies that indicate the main type of activity as additional education for children and adults or implement programs for additional education for children and have an appropriate license (the founders can be foreign individuals and legal entities); 2. Organizations of the public sector, having the main type of activity additional education of children. This marketing research does not consider companies that do not have the appropriate license, since their activities do not belong to the education system.
...
Table 4 presents the largest federal state projects of additional education for children. 
...

2.5. Market shares of the largest competitors
At the end of 2018, the total share of the largest participants in the additional market amounted to …%, among the largest enterprises in the market …
....

2.6. Profiles of the main market participants
...

Part 3. Analysis of the consumption of children's additional education services 
3.1. Estimation of the volume of consumption of additional children's education services per capita
Estimating the volume of consumption of additional education services allows ...
3.2. Service segmentation
3.2.1. The degree of differentiation of the market of additional education for children
Differentiation of services in the field of additional education for children is expressed in three main areas:
differentiation by type of educational institution; 
differentiation on a territorial basis - city / village;
differentiation in the areas of additional education services provided. 
To analyze the differentiation by type of educational institution, let us consider the structure by the number of students in organizations. 
Diagram 24. Differentiation of types of educational institutions by the number of students

 To analyze differentiation on a territorial basis - city / village, we also use the structure of the number of students. 
...
In accordance with the current legislation of India in the field of education, six areas of educational programs for additional education of children are distinguished:
technical, 
natural science, 
physical culture and sports, 
artistic, 
tourism and local history,
socio-pedagogical
...
Thus, the market for additional educational services for children is quite strongly differentiated by types of educational institutions...

3.2.2. The compactness of the location of the main companies in the states of India
The structure of distribution of organizations for additional education of children is generally proportional to the location of consumers by states of the federation of India ...
Speaking about the number of organizations implementing additional education programs for children, since 016 there has been …
...

3.4. Internal indicators of the current state of organizations of additional education for children
The load of teachers in organizations of additional education for children
...
Competitiveness of salaries of teachers of additional children's education
...
Salary expectations of teachers for work in the field of additional education of children as the main job
...
Advanced training of teachers of additional education for children
...
Technologies used in the work of teachers of additional education for children
...
Moods of teachers for additional education of children on job change
...
Evaluation of the change in the ratio of paid and free circles 
...
Diagram 40. Change in the ratio of paid and free circles, percentage of answers

3.4. Price analysis
An important aspect of the market of additional education for children is the dynamics of consumer prices in the field of education in India. …
...
The size of the average expenses for additional education of children differ significantly depending on the size of the locality, as well as depending on the place of education. 
...
Considering the average annual costs of parents for additional education of children, first of all, it is necessary to take into account the opinion of parents about the possibility of providing a child with additional education in case of a deterioration in the financial situation ...
...

Part 4. Assessment of factors of investment attractiveness of the market
Conclusion on the investment attractiveness of the market for additional educational services for children
The most significant positive factors: ...
The most significant negative factors: ...

Part 5. Forecast for the development of the market for additional children's education until 2023
We will analyze the market based on methods based on identifying trends over time, adjusted for expert opinion in the field of additional education for children.
In the medium term, the dynamics of the market volume of additional education for children will be influenced by the following factors:
...

Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators 
Macroeconomic factors affecting the market
Group of economic factors 
Group of political factors 
...
The most significant positive factors: ...
The most significant negative factors: ...
Conclusions on the prospects for the development of enterprises
The current participants in the market of additional education for children need to clearly understand the following market factors: ...
...

Diagrams

Diagram 1. Dynamics of the number of organizations engaged in educational activities for additional general education programs for children in 2015-2018
Diagram 2. Dynamics of the number of specialized organizations of additional education for children from 2014-2018
Diagram 3. The structure of institutions of additional education for children in 2017-2018
Diagram 4. Dynamics of the volume of the market for additional children's education services, billion Rs., 2014-2018
Diagram 5. Structure of the network of organizations implementing additional education programs and their contingent by types of organizations, %
Diagram 6. Gross margin by industry, %
Diagram 7. Dynamics of current liquidity by industry
Diagram 8. Dynamics of investment in fixed assets
Diagram 9. Absolute liquidity in the field of additional children's education in comparison with all sectors of the Indian economy, 2014-2018, times
Diagram 10. Provision with own working capital in the field of additional education, 2014-2018, %
Diagram 11. Business activity (average term of receivables turnover) in the field of additional education, for 2014-2018, days days
Diagram 12. Dynamics of GDP at current prices and the volume index of GDP
Diagram 13. Dynamics of real disposable money income
Diagram 14. Population change in India, 2010-2019
Diagram 15. Changes in the number of children in India, 2014-2019
Diagram 16. Number of births in 2010-2018
Diagram 17. The share of organizations of additional education for children whose buildings require major repairs or are in disrepair, in the total number of organizations of additional education for children (%)
Diagram 18. Provision of additional education organizations with computer equipment
Diagram 19. Problems in educational institutions affecting the quality of educational services provided and reducing competitiveness (%)
Figure 1. Stage of the life cycle of the market of additional children's education
Diagram 20. Coverage of children aged 5-18 years with additional education
Diagram 21. Distribution of market shares of additional educational services among the largest enterprises
Diagram 22. Dynamics of the volume of consumption of additional children's education services per capita
Diagram 23. Dynamics of the volume of consumption of additional children's education services per capita of the child population
Diagram 24. Differentiation of types of educational institutions by the number of students
Diagram 25. Territorial differentiation urban/rural
Diagram 26. Distribution of students by areas of additional educational programs, %
Diagram 27. Location of organizations implementing additional education programs in the union territories of India in 2016-2018.
Diagram 28. Parents' inquiries regarding the results of children's participation in additional education, percentage of parents' answers
Diagram 29. Factors of choice of additional education programs, percentage of parents' answers
Diagram 30. Satisfaction of parents with the services provided by additional education for children, percentage of parents' answers
Diagram 31. Average number of days per week a child attends a class
Diagram 32. The average number of hours per week during which the child is engaged in additional education
Diagram 33. Assessment of changes in various areas of additional education for children, percentage of responses
Diagram 34. Travel time to educational institution, percentage of parents' response
Diagram 35. The structure of the load of teachers, the percentage of answers
Diagram 36. The share of teachers who consider the salary competitive, %
Diagram 37. Participation of teachers in advanced training and retraining programs, percentage of response
Diagram 38. Technologies used by teachers in their work
Diagram 39. Percentage of teachers willing to change jobs
Diagram 40. Change in the ratio of paid and free circles, percentage of answers
Diagram 41. The average amount of expenses for additional education within and outside the school by type of locality, thousand Rs. per month
Diagram 42. Average prices for additional education of children, Rs. in year
Diagram 43. Parents' opinion on the possibilities to ensure that the child receives additional education in the event of a deterioration in the financial situation of the family, %
Diagram 44. Parents' opinion on plans to organize additional education for the child in the event of a deterioration in the financial situation of the family, %
Diagram 45. Forecast of the number of children aged 0-18 years, pers.
Diagram 46. Forecast of the size of the market of additional education for children, billion Rs.

Tables 

Table 1. STEP-analysis of factors influencing the market of additional education for children
Table 2. Integration of additional education into the general education system
Table 3. The main private and non-profit companies participating in the market of additional children's education in 2018
Table 4. The main federal state projects of additional education for children
Table 5. The main organizations of additional education for children in 2018
Table 6. Basic information about the participant in the market of additional children's education Educational Center ""XXX""
Table 7. Basic information about the participant in the market of additional children's education LLC ""XXX""
Table 8. Basic information about the participant of the market of additional children's education JSC ""XXX ""XXX""
Table 9. Basic information about the participant of the market of additional children's education ANPOO ""XXX""
Table 10. Basic information about the participant in the market of additional children's education ANO ODOOC ""XXX""
Table 11. The number of organizations implementing programs of additional education for children, by union territories of India in 2015-2018
Table 12. The ratio of the salary level that would allow full-time teachers to focus on the main (refuse from additional work), and part-time teachers to move to the staff of institutions for additional education of children, to their actual salary
Table 13. Consumer price indices for education services in India in 2014-2019, % compared to December of the previous year
Table 14. Monthly expenses of families for additional classes for children; share of families who indicated the corresponding price range, %
Table 15. Assessment of factors of investment attractiveness of the market of additional education services
Table 16. Key indicators of socio-economic development forecast for 2019-2024 according to the Ministry of Economic Development of India