Market Analysis for Parks and Leisure in India
The relevance of research
Parks of culture and recreation are a type of urban institutions that meet the needs of the urban population in recreation against the backdrop of nature, as well as in cultural and leisure activities in the open air. Parks are very diverse in terms of location, size, place in the architectural and planning structure of the city and its water-green system, functional purpose and other features. A special role among them is occupied by multidisciplinary parks of culture and recreation, amusement parks. As business states, they are focused on attracting visitors, shaping their flows and generating income from the service.
Purpose of the study
Analysis of the state of the parks of culture and recreation market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the market of parks of culture and recreation
Content
Part 1. Overview of the Indian Parks and Leisure Market
1.1. Definition and Characteristics of the Indian Parks and Leisure Market
1.2. Dynamics of the Indian parks and recreation market volume, 2016-2020
1.3. Market structure by type of service provided in India
1.4. Structure of the market for parks of culture and recreation in the 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 of the Parks and Leisure Market in India
2.1. Major market players
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of the consumption of parks of culture and recreation
3.1. Estimation of the volume of consumption of parks of culture and recreation 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 parks of culture and recreation market until 2025
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 Parks and Leisure Market
1.1. Definition and Characteristics of the Indian Parks and Leisure Market
Parks of culture and recreation are a type of urban institutions that meet the needs of the urban population in recreation against the backdrop of nature, as well as in cultural and leisure activities in the open air.
Parks are very diverse in terms of location, size, place in the architectural and planning structure of the city and its water-green system, functional purpose and other features. A special role among them is occupied by multidisciplinary parks of culture and recreation, amusement parks.
As economic states, they are focused on attracting visitors, shaping their flows and generating income from the service. However, each park has an optimal capacity, and if the density of visitors is too high, the glut reduces the possibility of consumption - there are long queues, lack of pleasure, the incentive to buy disappears, etc., which negatively affects the financial performance of the park.
The specificity of the park as a cultural institution lies in the fact that for many urban residents, recreation in parks often becomes the only available opportunity to spend time in nature, take part in mass entertainment, satisfy the needs for informal communication with the family, where the principle of changing occupations is an indispensable condition for recreation and entertainment.
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1.2. Dynamics of the Indian parks and recreation market volume, 2016-2020
The volume of the parks of culture and recreation market is indicated on the basis of the receipt of funds in them according to the Ministry of Culture of India.
In 2016–2019 The Indian amusement parks market has been booming and would have continued to grow if the Covid-2020 pandemic had not started in 19, which temporarily suspended all recreational and amusement facilities.
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Diagram 2. Dynamics of the volume of the parks of culture and recreation market, 2016–2020, billion Rs.
1.3. Market structure by type of service provided in India
According to the Ministry of Culture of India, both leisure facilities and attractions are almost equally represented in the structure of leisure and cultural parks.
1.4. Structure of the market for parks of culture and recreation in the Union Territories
The largest number of parks of culture and recreation are located in the Central ...
1.5. Assessment of current trends and development prospects of the studied market
Trends:
Parks are becoming multifunctional: entertainment, physical health support, education, co-working;
Not only the state, but also private investors take part in the creation and reconstruction of parks. Some projects are implemented on the terms of public-private partnership;
Strengthening the security of parks with guards and cameras;
Zoning of space by categories of the target audience: age criteria and types of recreation;
Manufacturability: Wi-Fi, solar-powered lighting elements, sockets built into small architectural forms for charging the phone, etc.;
The use of virtual and augmented reality technologies, QR codes, signs, urban solutions, small architectural forms in dialogue with vacationers;
Increasing the number of green areas and equipped public spaces;
Arrangement of small park areas in the central parts of the city, together with accessibility from workplaces and in places of the greatest concentration of people at lunchtime, which helps to maintain the spiritual and physical balance of the population;
Change in the organizational structure of park maintenance. For example, in Novosibirsk, a single directorate of parks was created: in the fall of 2020, 11 city parks received a single management;
Development of theme parks;
Due to coronavirus restrictions, some parks have organized online events based on their Internet resources.
Perspectives:
Cities will increase the number of green spaces. Parks will become visiting cards and sights of cities;
Available spaces in cities are limited, so atypical spaces will be used. An increase in the number of ""green regeneration"" projects - the creation of parks in the territories of wastelands, industrial zones, former landfills;
Cities will connect green areas so that it will be possible to travel long distances on foot, on a bicycle, on roller skates, on scooters. Small businesses will begin to appear in these spaces: cafes, small services, showrooms. To this will be added the disclosure for public access of industrial areas. The right territory for work in the future is integrated into the connected, including the park, recreational environment of the city.
1.6. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, demand.
Economic
India GDP
GDP is a macroeconomic indicator that reflects the market value of all final goods and services produced in a year in all sectors of the economy on the territory of the state for consumption, export and accumulation.
The dynamics of India's GDP is decisive in the vector of development of the entire economy of the country and determines the key trends in consumer effective demand and economic activity.
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Социальные
Population
During 2012–2017 India's population has shown a positive trend. However, in 2018, the vector changed – the population decreased due to the natural population decline in 2016–2019.
The current demographic situation in India is characterized by natural population decline (since 2017), which is accelerating, and migration growth, which does not compensate for natural decline.
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Real income of the population
technological
The need for modernization
The need for modernization is due to the fact that in the process of transformation of the modern world, noticeable dynamic changes are taking place, consisting in a change in the nature of the use of park areas. The parks of culture and recreation, widespread in India, need new development concepts, large investment injections and re-equipment. Negative influence of the factor.
Seasonality
The number of visitors to parks of culture and recreation is directly related to the time of year. In the spring-summer period, the demand for park services increases, and in the autumn-winter period it decreases. Negative influence of the factor.
Political
Certification
Certification of attractions is organized within the framework of the requirements of the profile technical regulation of the EAEU 038/2016, which entered into force on April 18, 2018. During the evaluation procedures, the manufacturer's documentation is checked and laboratory tests of the equipment are carried out. The provisions of the regulation apply to the following types of carousels:
–– inflatable;
- water mechanized and non-mechanized;
- mechanized devices of various trajectories of movement;
–– karting and autodromes;
- swings for children.
To evaluate the equipment, identification is carried out according to the degree of biomechanical impact on passengers. The choice of conformity assessment scheme (certification or declaration) is determined by the magnitude of the potential risk.
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Development of domestic tourism
In 2021, a new national project “Tourism and Hospitality Industry” appeared in India, and the federal project “Tourism Infrastructure Development” was singled out in its structure, the key goal of which is to provide tourist areas with modern infrastructure. Also, the main goals of the project will be to achieve a certain level of tourist flow, create a system to support public and business initiatives in this area, and other tasks. The demand for domestic tourism improves the economy of the regions and their infrastructure, which positively affects the market under study.
Concluding the assessment of the factors influencing the Indian parks and recreation market, we will summarize the key ones in the framework of the STEP-analysis.
Table 1. STEP-analysis of factors influencing the parks of culture and recreation market
According to the results of the performed STEP-analysis, macro-environment factors have a more positive impact on the development of the parks of culture and recreation market.
The restoration of the population's solvency, political factors, the stabilization of exchange rates and the recovery of GDP have a positive impact.
1.7. Analysis of sectoral indicators of financial and economic activity
During 2016–2020 the gross margin of the parks and recreation industry is below all sectors of the Indian economy, and in 2017 it is even in the negative zone. However, according to the results of the first half of 2021, the indicator amounted to ...%, which is 15,6 p.p. higher than the gross margin in all industries as a whole.
...
Profit before tax reflects the share of revenue that remained in the enterprise as profit before tax.
...
Current liquidity characterizes the extent to which all short-term liabilities of the enterprise are secured by current assets, shows how many rupees of current assets account for a unit of short-term liabilities.
...
Diagram 10. Current liquidity (total coverage) in the field of parks of culture and recreation for 2016–Jun. 2021, times
Absolute liquidity shows what part of short-term liabilities can be repaid in the shortest possible time. For Indian companies, the normative value of the absolute liquidity ratio is in the range Kal> 0,2–0,5.
Table 3. Absolute liquidity in the parks and recreation industry compared to all sectors of the Indian economy, 2016-Jun. 2021, times
The equity ratio characterizes the availability of own working capital of the enterprise, necessary for its financial stability, it is calculated to assess the solvency of the enterprise.
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In general, the analysis of industry financial ratios allows us to state financial instability in the industry. Since the first half of 2021, there have been high profitability indicators, a reduction in the average turnover period of receivables, however, there have been difficulties in covering short-term liabilities and financial instability.
Part 2: Competitive Analysis of the Parks and Leisure Market in India
2.1. Major players in the market
Each region of India has its own large parks, but most of the leading ones in terms of revenue are located in.
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2.2. Market shares of the largest competitors
The main operators of the market of parks of culture and recreation in India occupy ...% of the market. The largest player in 2020 is Sochi Park, occupying ...% of the market.
Diagram 13. Shares of the largest competitors in the parks of culture and recreation market in 2020, %
The park market in India is characterized by a low level of concentration (large number of operators with relatively small market shares, Herfindahl-Hirschman HHI <1000 - low concentration market). Mergers and acquisitions are allowed freely.
2.3. Profiles of major players
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The dynamics of the total revenue of these institutions was estimated by GidMarket according to the data of the federal treasury and InterMedia.
Part 3. Analysis of the consumption of parks of culture and recreation
3.1. Estimation of the volume of consumption of parks of culture and recreation per capita
During 2016–2019 the volume of consumption of services of parks of culture and recreation per capita has steadily increased.
3.2. Market Saturation and Estimated Market Potential in India
The market for parks of culture and recreation is in the stage of maturity. The maturity stage is the longest of all life cycle stages. It is built on the use of the service by conservative consumers, on fame and wide representation, which ensures a stable level of sales over a long period.
The process of development of parks is hindered by the low income of Indian citizens, the insufficient level of investment. In this regard, in India, small parks are mainly developed near large cities and in resort centers.
In the context of the coronavirus, the industry will be supported by the redistribution of demand from foreign tourism to domestic.
Modern day visitors expect more than traditional parks can offer. The implementation of projects to create theme parks will raise the entertainment industry to a new level, attract tourists and give impetus to the development of regional tourism.
The tense epidemiological situation will contribute to the growth of outdoor leisure activities, including in parks of culture and recreation.
3.3. Description of consumer preferences
The main factors influencing the choice of a particular park are security on the territory of the facility and the convenience of the park's location by ... points.
3.4. Price analysis
Consumer price indices in the market of parks of culture and recreation were calculated by GidMarket analysts based on the indices for services to the population in general and for the services of cultural institutions according to Rosstat. For the period 2016–2020. the average annual consumer price index in the market of culture and recreation parks amounted to ...%.
...
Table 11. Average prices in the parks and recreation parks market by Union Territories, 2021 season, Rs.
Part 4. Assessment of factors of investment attractiveness of the market
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The positive factors of the investment climate in the parks of culture and recreation market dominate over the negative ones.
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The most significant positive factors.
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The most significant negative factors.
Part 5. Forecast for the development of the parks of culture and recreation market until 2025
Further development of the market for parks and recreation services will largely be determined by the gradual normalization of the economic situation in India, the stabilization of the rupee and the growth of business confidence.
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Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
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At the same time, macro-environment factors have a more positive impact on the development of the parks of culture and recreation market. The restoration of the population's solvency, political factors, the stabilization of exchange rates and the recovery of GDP have a positive impact.
Analysis of industry financial ratios allows us to state financial instability in the industry. Since the first half of 2021, there have been high profitability indicators, a reduction in the average turnover period of receivables, however, there have been difficulties in covering short-term liabilities and financial instability.
...
The positive factors of the investment climate in the parks of culture and recreation market dominate over the negative ones. A comprehensive assessment of investment attractiveness factors shows a neutral investment climate close to favorable.
Diagrams
Diagram 1. Structure of financial resources received by parks of culture and recreation, 2020, %
Diagram 2. Dynamics of the volume of the parks of culture and recreation market, 2016–2020, billion Rs.
Diagram 3. Market structure of culture and recreation parks by type, 2020, %
Diagram 4. The structure of the provision of parks of culture and recreation in India by Union Territories, 2020, %
Diagram 5. Dynamics of India's GDP, 2012-Sep. 2021, % to the previous year
Diagram 6. Monthly dynamics of the US dollar against the rupee, Rs. for 1 US dollar, 2016-Nov. 2021
Diagram 7. Population dynamics in India, as of 01 Jan. 2012–2021, million people
Diagram 8. Dynamics of real incomes of the population of India, % to the previous year, 2012–Sep. 2021
Chart 9. Pre-Tax Profit Margin (Financial Period Profit) for Parks and Recreation vs All Industries in India, 2016-Jun 2021, %
Diagram 10. Current liquidity (total coverage) in the field of parks of culture and recreation for 2016–Jun. 2021, times
Diagram 11. Business activity (average term of receivables turnover) in the field of parks of culture and recreation, for 2016–Jun. 2021, days days
Chart 12. Financial sustainability (capacity) in the parks and recreation sector, in comparison with all sectors of the Indian economy, 2016-Jun. 2021, %
Diagram 13. Shares of the largest competitors in the parks of culture and recreation market in 2020, %
Diagram 14. Dynamics of the total revenue of the largest operators of the parks of culture and recreation market (TOP-5) in India, 2016–2020, billion Rs.
Diagram 15. The volume of consumption of parks of culture and recreation per capita, 2016–2020, Rs./person
Diagram 16. The importance of criteria for choosing parks of culture and recreation by consumers, 2020, points
Diagram 17. Forecast of the volume of the parks of culture and recreation market in 2021–2025, billion Rs.
Tables
Table 1. STEP-analysis of factors influencing the parks of culture and recreation market
Table 2. Parks & Leisure Industry Gross Margin vs. All Industries in India, 2016-Jun 2021, %
Table 3. Absolute liquidity in the parks and recreation industry compared to all sectors of the Indian economy, 2016-Jun. 2021, times
Table 4. The main companies participating in the parks of culture and recreation market in 2020
Table 5. Basic information about participant No. 1 of the parks of culture and recreation market
Table 6. Basic information about participant No. 2 of the parks of culture and recreation market
Table 7. Basic information about participant No. 3 of the parks of culture and recreation market
Table 8. Basic information about participant No. 4 of the parks of culture and recreation market
Table 9. Basic information about participant No. 5 of the parks of culture and recreation market
Table 10. Consumer price indices in the parks and recreation market for India in 2016–Oct. 2021, %
Table 11. Average prices in the parks and recreation parks market by Union Territories, 2021 season, Rs.
Table 12. Assessment of factors of investment attractiveness of the parks of culture and recreation market
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