Career Guidance Market Analysis in India
The relevance of research
Career guidance (career guidance, career choice, career orientation, professional self-determination) is a set of actions to identify a person's inclinations and talents for certain types of professional activity, as well as a system of actions aimed at helping people of all ages choose a career path.
The concept of career guidance appeared as a result of the merger of two words from different languages: the Latin profession (occupation) and the French orientation (installation).
Career guidance is based on psychology, sociology, economics, philosophy, law and medicine.
Purpose of the study
Analysis of the state of the vocational guidance market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the vocational guidance market
Content
Part 1. An Overview of the Indian Career Market
1.1. Definition and Characteristics of the Indian Career Market
1.2. Dynamics of the volume of the Indian career counseling market, 2015-2019
1.3. Market structure by type of service provided in India
1.4. Structure of the Career Guidance Market by Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2: Competitive Analysis in the Career Counseling Market in India
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Career Guidance Consumption Analysis
3.1. Estimation of the volume of consumption of vocational guidance per capita
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the career guidance market until 2024
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
Research excerpt
Part 1. An Overview of the Indian Career Market
1.1. Definition and Characteristics of the Indian Career Market
Consider the characteristics and features of the career guidance market in the Indian market.
Career guidance (career guidance, career choice, career orientation, professional self-determination) is a set of actions to identify a person's inclinations and talents for certain types of professional activity, as well as a system of actions aimed at helping people of all ages choose a career path.
The concept of career guidance appeared as a result of the merger of two words from different languages: the Latin profession (occupation) and the French orientation (installation).
Career guidance is based on psychology, sociology, economics, philosophy, law and medicine.
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Diagram 1. Reasons why graduates do not work in their specialty, %
According to the results of a study conducted by WorldSkills Russia with the support of the Ministry of Education, more than ...% of schoolchildren have no idea what they are going to do in life. And only ...% of respondents have already decided on a profession.
At the same time, only …% of the population of India work in their specialty.
According to the data of the magazine ""Population"" in 2019 for young people, when choosing a specialty, the most important criteria are interest in it (...%), demand (...%).
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Today, the main vector of development in the career guidance market is set by the state. The lack of specialists in specific areas, the shift in the attention of graduates towards ""fashionable"" specialties and the increasing competitiveness of the country in the field of innovations force the state to invest budgetary money in the professional orientation of children.
Due to the growing demand for career guidance, a market for private career guidance services is emerging in India. Some of them try to consistently develop a conscious approach to choosing a profession, introducing a teenager to established specialists and professions where one can apply their qualities and skills. Others focus on teenagers visiting companies, banks, laboratories, where during the tour you can ask about the features of their work and find out all the details. There are programs that declare that they are ready to make a choice of profession for the child, identifying his interests and abilities, and on the basis of this, select universities.
1.2. Dynamics of the volume of the Indian career counseling market, 2015-2019
Consider the dynamics of the volume of the career guidance market in India.
The market for these services in 2019 reached … Rs., the market growth compared to 2018 amounted to …%. Over a five-year period (2015-2019), the volume of the commercial career counseling market increased by …%, an annual growth in the market volume was observed, however, since 2017, there has been a slowdown in growth rates, which is due to macroeconomic factors: ... The average annual growth rate in 2015-2019 gg. was at the level of …%.
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In real terms, the career guidance market developed at a slower pace and grew by …% over 5 years. The average annual growth rate was …%. At the end of 2019, according to the estimates of GidMarket analysts, … million consultations were provided on a commercial basis, which is …% more than in 2018.
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1.3. Market structure by type of service provided in India
Career guidance companies provide the following services:
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Diagram 5. Market structure by types, %
1.4. Structure of the Career Guidance Market by Union Territories
In 2020, the vast majority of career guidance services account for … (…%). The second place is occupied by … the Union Territories (…%), the third place in terms of the number of these services is occupied by … the Union Territories (…%). This is followed by … Union Territories with a share of …%. … Union Territories and … Union Territories account for …% and …% of the market, respectively. The smallest volume of services was provided in … Union Territories (…%) and … Union Territories (…%).
Diagram 6. The structure of the provision of services in the career counseling market in India by Union Territories, 2020, %
1.5. Assessment of current trends and development prospects of the studied market
In India, there are a number of systemic problems in the field of career guidance:
Lack of generally accepted, unambiguous images of professional success
Vague goals of professional self-determination
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1.6. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, demand.
Social (demographic)
During 2015-2018 India's population is on the rise. The increase in the population in 2015 was not only due to migration and natural increase, but also due to the formation of two new states of the Federation - the Republic of Crimea and the city of Sevastopol.
In 2016-2019 there are negative values of natural increase, but despite this, the population of India increased until 2019 due to population migration, and in 2019 the population began to decline. Since the beginning of 2019, the population has decreased by 36,9 thousand people, or 0,03% (for the same period of the previous year, it decreased by 78,7 thousand people, or 0,05%). The migration increase compensated for the natural population decline by 85,8%. Negative influence of the factor.
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However, in 2017-2019 there has been an increase in the population aged 15-19 years - the main consumers of career guidance services. At the same time, during this period, the population of 20-29 years old decreased.
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According to the forecast for the period up to 2024, the population will increase only if the high version of the forecast is followed, however, in light of the developing economic crisis and the coronavirus pandemic, this version of the forecast is unlikely to materialize.
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Level of real incomes of the population. In 2019, the average per capita cash income of the population amounted to 35 Rs. per month (“plus” 188% by 6,1). The average nominal wage was Rs 2018. per month (“plus” 47% by 468).
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Economic
GDP is a macroeconomic indicator that reflects the market value of all final goods and services (that is, intended for direct consumption) produced per year in all sectors of the economy on the territory of the state for consumption, export and accumulation, regardless of the nationality of the factors of production used. It is the main, most complete official indicator of public welfare. The absolute and relative values of GDP give an idea of the general material well-being of the nation and the dynamics of its growth / decrease, since the higher the level of production, the higher the welfare of the country.
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In the context of circumstances that currently negatively affect the size of GDP in the short and medium term, we indicate the opinions of experts.
On June 10, 2020, the Organization for Economic Cooperation and Development (OECD) presented two scenarios for the development of the global economy against the backdrop of the situation with the coronavirus. In the negative scenario, which implies a second wave of the pandemic, the decline in global GDP in 2020 will be 7,6%. For 2021, the OECD revised its March forecast for global economic growth downward by 0,5 percentage points. up to 2,8%. Under a less pessimistic scenario - in the absence of a second wave of coronavirus - global GDP will decrease by 2020% in 6,0, and in 2021 the global economy will grow by 5,2%.
According to the forecast of the World Bank, the decline in global GDP in 2020 is projected at the level of 5,0% to 7,1%. At the same time, the decline in GDP per capita is expected to affect the largest share of countries since 1870. In the January GEP, the World Bank predicted the growth of the world economy by 2,5% this year, thus, in June the forecast was immediately worsened by 7,7 percentage points (p.p.).
In August 2020, Deutsche Bank upgraded its outlook for the global economy for 2020, noting that it is recovering faster than expected from the crisis caused by the coronavirus pandemic. In May, the bank predicted a fall in world GDP by 6,0% for the year, now it expects it to decline by 4,5%. The forecast for global economic growth in 2021 by 5,5% remained unchanged.
The International Monetary Fund (IMF) at the end of June 2020 updated the forecasts for GDP dynamics in the world and by country. The IMF believes that the pandemic has had a more negative impact on the global economy than previously thought. Expectation of global GDP decline was worsened to 4,9% (-1,9 p.p.) in 2020. The forecast for India was worsened to a GDP decline of 6,6% (-1,1 p.p.). The IMF also downgraded its expectations for the global economy in 2021 to growth of 5,4% (-0,4 p.p.). For India, the forecast was improved to growth by 4,1% (+0,6 p.p.).
The World Bank expects global GDP to decline by 2020% in 5,2.
Regarding India, experts predict a difficult and unpredictable period. Firstly, because the entire global economy has entered a recession triggered by the coronavirus. Secondly, there was a drop in world oil prices, which is extremely painful for the Indian economy. As a result, it is highly likely that in the medium term the career guidance market will also be negatively affected by negative processes in the global and Indian economies. The strength and duration of the impact will depend on: the demand for oil and gas and the level of world prices for them, the duration of the period of low prices, as well as the duration of the coronavirus pandemic in the world and India.
Let's take a look at some experts' assessments:
According to the quarterly survey of professional forecasters (August 2020), made by the HSE Development Center, it assumes a reduction in domestic GDP by 4,2% this year, and in 2021 its recovery growth by 3,1%. After that, according to the consensus forecast, the Indian economy will enter a long-term growth path of about 2,0% per year (this rate has long been considered by the majority of the expert community as the most adequate estimate of the potential growth of India's GDP).
The World Bank estimates that India will contract by 2020% in 6,0, driven by a surge in COVID-19 cases and falling oil prices. In January, the World Bank predicted the growth of Indian GDP by 1,6%, thus, the June decline in the forecast amounted to 7,2 percentage points. In 2021-2022 indicator is projected to recover at a moderate pace.
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The depreciation of the national currency leads to an increase in the cost of goods and services, which, in the face of falling incomes of the population, has a negative impact on the market.
The industrial production index shows the total volume of all industrial production, utilities, etc. in terms of money.
In 2015, the index decreased by …%. In 2016, growth rates begin to increase by …%, in 2017 - by …%, in 2018 – by …%. At the end of 2019, this indicator increased by …% compared to the same period in 2018.
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inflation rate. Inflation in 2019 (…%) took the second place in the entire history of observations - it was lower only at the end of 2017 - …% (against the backdrop of a record harvest). In 2018, inflation amounted to …%. At the end of 5 months In 2020, inflation amounted to …% year-on-year. The decline in inflation is a positive factor contributing to the development of the industry in India.
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technological
Digitalization. The rapid development of data analysis, machine learning and other latest technologies in education already now allows you to collect and analyze a large amount of information about each individual student. Digitalization in the near future will allow collecting information about a person from birth, which in the future will help build truly individual educational trajectories based on the interests and inclinations of the child.
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Political
Credit policy. Today it is quite difficult to imagine the progressive development of the economy without the active participation of the credit system. It should also be noted that the assessment of the availability of credit resources for both legal entities and individuals is a significant indicator that allows assessing not only the demand for credit funds, but can also serve as a reflection of the real economic situation both in the region and in the economy as a whole.
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The Government of India is actively working towards the availability of credit funds. The weighted average interest rate after the growth in 2015 tends to decrease. Low stable interest rates allow you to plan your business more confidently. Order of the Ministry of Economic Development of India dated February 19.02.2015, 74 N 2020 approved the Main Provisions of the Strategy for the Development of the National Guarantee System for Supporting Small and Medium Enterprises for the period up to . The main goals of the Development Strategy are to increase the availability of credit resources for SME states and the formation of a unified system of guarantee support for small and medium enterprises and medium business.
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Table 3. Analysis of the impact on the industry of the state aid proposed to date
In general, the impact of macro factors on the career guidance market can be assessed as ... ... a group of economic and social factors. In addition, ... two technological factors influence ...
1.7. Analysis of sectoral indicators of financial and economic activity
Consider the financial and economic indicators of the career guidance market for 2015-2019.
Gross margin
Gross margin is gross profit divided by sales revenue (excluding excise taxes and VAT). Gross margin shows how much gross profit falls on a unit of revenue. Gross profitability serves as an assessment of the economic efficiency of an enterprise, which reflects the rational use of labor, material, monetary and other resources.
Compared to all sectors of the Indian economy, the industry has a higher gross margin: for the period 2015-2019. on average higher by … p.p. At the end of 2019, the gross margin of the industry by … p.p. above the average for all sectors of the Indian economy.
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Part 2: Competitive Analysis in the Career Counseling Market in India
2.1. Major players in the market
The commercial career counseling market in India is represented by:
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2.2. Market shares of the largest competitors
As of 2019, the largest career guidance market operators are …, occupying …% and …% of the market, respectively. Followed by …, the market share of these organizations is …%. Other companies account for …% of the market for these services, which indicates its great fragmentation.
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2.3. Profiles of major players
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Part 3. Career Guidance Consumption Analysis
3.1. Estimation of the volume of consumption of vocational guidance per capita
During 2015-2019 The volume of consumption of vocational guidance per capita has steadily increased. At the end of 2019, the volume of services consumption per capita amounted to … Rs./person, which is …% more than in 2018 and by …% more than in 2015. The average annual growth rate of the indicator was …%.
Diagram 18. Volume of consumption of services in the career guidance market per capita, 2015-2019, Rs./person
3.2. Market Saturation and Estimated Market Potential in India
The socio-economic changes that have taken place in India over the past 10-15 years are making significant adjustments in many areas of life, including education and the professional orientation of young people. In today's changing world, the choice of a profession ceases to be one-time and static, made at a certain stage of professional development, but turns into a continuous process. It is possible to realize this task in conditions of continuous education.
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Enterprises spend up to …% of their budget on personnel training, on post-graduate education, while in Western countries the share of such expenses is …%.
Insufficient attention is still paid to the formation of student youth motivation to work and the need to acquire a profession that is in demand on the labor market.
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3.3. Description of consumer preferences
Among the activities that help in choosing a profession, schoolchildren most often name ... in educational institutions (...%) and ... (...%), less often - ... and professions (...%) and ... at enterprises (...%). A significant part of the students (…%) answered that none of the above helped them.
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3.4. Price analysis
It is not always easy to compare prices for services in the field of career guidance, since there are classes that are very different in nature and duration: one-time consultations, group excursions and training courses, multi-day educational trips and seminars.
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In 2019, the maximum prices in the career guidance market were marked in … (… Rs./service), … (… Rs./service) and … (… Rs./service). In other federal districts, the cost of services was lower than in India as a whole.
Table 17. Consumer prices in the career counseling market in the Union Territories of India, 2015 - 2019, Rs./service
List of diagrams and figures
Diagram 1. Reasons why graduates do not work in their specialty, %
Diagram 2. Criteria for choosing a profession, %
Diagram 3. Dynamics of the volume of the career counseling market in India for the period 2015-2019 in monetary terms, million Rs.
Diagram 4. Dynamics of the volume of the career counseling market in India for the period 2015-2019 in monetary terms, thousand units
Diagram 5. Market structure by types, %
Diagram 6. The structure of the provision of services in the career counseling market in India by Union Territories, 2020, %
Diagram 7. Dynamics of the population of India, 2015-2019, million people, thousand people
Diagram 8. Population aged 15-29, thousand people, 2017-2019
Diagram 9. Population forecast in India for the period 2021-2024, million people
Chart 10. Dynamics of real incomes of the population of India, 2015-2019
Diagram 11. Dynamics of India's GDP, 2011-2019, Q1 2020, % to the previous year, trillion Rs.
Chart 12. Monthly dynamics of the US dollar against the rupee, 2015-2020 (Jan-July), Rs. for 1 US dollar
Chart 13. Dynamics of the inflation rate in India, 2015-2020 (6 months), %
Chart 14. Dynamics of the average interest rate on loans to legal entities, 2014-2020
Diagram 15. Current liquidity (total coverage) in the field of vocational guidance for 2015-2019, times
Diagram 16. Shares of the largest competitors in the vocational guidance market in India in 2019, %
Diagram 17. Dynamics of the volume of revenue of the largest operators of the career guidance market (TOP-5) in India, 2015-2019, million Rs.
Diagram 18. Volume of consumption of services in the career guidance market per capita, 2015-2019, Rs./person
Diagram 19. Awareness of career guidance centers among young people, %
Figure 20. Career market life cycle stage
Diagram 21. What activities helped in choosing a profession, %
Diagram 22. Criteria for the effectiveness of career guidance classes / consultations, %
Diagram 23. Average prices in the career guidance market, 2015-2019, Rs./service
Diagram 24. Forecast of the size of the career guidance market in 2020 - 2024 – under the scenario of one quarantine, million Rs.
Diagram 25. Forecast of the size of the career guidance market in 2020 - 2024 – under the scenario of two quarantines, million Rs.
List of tables
Table 1. Industrial production index by state of India (in % of the previous year), 2015 - 2019
Table 2. Weighted average interest rates of credit institutions on loans to non-financial institutions in rupees (% per annum), 2014 - 2020
Table 3. Analysis of the impact on the industry of the state aid proposed to date
Table 4. STEP analysis of factors influencing the career counseling market
Table 5. Gross margin of the vocational guidance industry in comparison with all sectors of the Indian economy, 2015-2019, %
Table 6. Profitability before tax (profit of the reporting period) in the field of vocational guidance in comparison with all sectors of the Indian economy, 2015-2019, %
Table 7. Absolute Liquidity in Career Guidance Compared to All Sectors of the Indian Economy, 2015-2019, times
Table 8. Business activity (average period of receivables turnover) in the field of vocational guidance, for 2015-2019, days days
Table 9. Financial stability (security of own working capital) in the field of vocational guidance in comparison with all sectors of the Indian economy, 2015-2019, %
Table 10. Main companies participating in the career guidance market in 2019
Table 11
Table 12. Basic information about a participant in the career guidance market Center for Testing and Development ""Humanitarian Technologies""
Table 13. Basic information about the participant of the career guidance market National Center for Professional Orientation
Table 14. Basic information about the career guidance market participant ""Career Guidance Bureau""
Table 15. Basic information about the career guidance market participant Professional Orientation Center
Table 16. Consumer price indices in the vocational guidance market for the Union Territories of India, 2015 - 2020 (Jan-July), %
Table 17. Consumer prices in the career counseling market in the Union Territories of India, 2015 - 2019, Rs./service
Table 18. Assessment of factors of investment attractiveness of the career guidance market
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