Market analysis of dance schools in India
The relevance of research
The dance services market in India is expanding every year with the number of proposed directions: classical ballet, pop, folk, ballroom, modern dances, including hip-hop, house, etc., trying to attract an increasing number of potential customers
Purpose of the study
Analysis of the state of the dance school market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the dance school market
Content
Part 1. Overview of the Indian Dance School Market
1.1. Definition and Characteristics of the Indian Dance School Market
1.2. Dynamics of the Indian dance school market volume, 2015-2019
1.3. Market structure by type of service provided in India
1.4. Market Structure of Dance Schools 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 of the Dance School 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. Analysis of consumption of dance schools
3.1. Estimated per capita consumption of dance schools
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 dance school 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. Overview of the Indian Dance School Market
1.1. Definition and Characteristics of the Indian Dance School Market
The market for dance services is actively developing in India, borrowing and developing a variety of Western styles and trends. Every year the number of proposed directions is expanding: classical ballet, pop, folk, ballroom, modern dances, including hip-hop, house, etc., trying to attract an increasing number of potential customers. Modern society welcomes the improvement of oneself, the development of plasticity and beauty of the body, so many markets that offer relevant services are developing. The shift of interest towards dancing is also connected with the fact that people get tired of strength training, they want to try something new.
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Pedagogical practice in dance education has changed significantly over the past decades. Dance pedagogy has traditionally followed a learning model where students learn by imitating the specific vocabulary of movements modeled by an experienced teacher. Many teachers in the classroom still feel most comfortable teaching dance in this way, because that is how they were taught. It is now widely recognized that translating knowledge of dance content into knowledge for teaching and learning involves much more than dance technique and control, and that teachers need a wide range of pedagogical strategies to motivate and engage their students.
1.2. Dynamics of the Indian dance school market volume, 2015-2019
The size of the dance school market was estimated by GidMarket analysts based on the average subscription price, the average number of customers according to business plans, and the total number of schools.
Diagram 1. Dynamics of the market size of dance schools, 2015-2019, billion Rs.
However, in 2020, the demand for dance classes fell, both due to the directive closure of dance schools, and due to saving people during the crisis due to a decrease in real disposable income.
1.3. Market structure by type of service provided in India
Studios are leading by types of dance schools …%. For such an institution, you need to hire several teachers. If an entrepreneur has the appropriate education and skills, he can take on this role himself.
The dance studio is engaged in training amateurs and professionals. Teachers use author's methods. The preference for a dance studio is given by people who want to learn from a particular teacher and appreciate a cozy atmosphere.
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Next comes the dance club. The institution offers clients to sign up for training in fitness classes. Work is conducted with non-professionals without age restrictions. The clubs host parties and events. Students take part in tournaments among amateurs. Qualified choreographers and teachers act as teachers.
In the last place in the structure of the market of dance schools by type is a sports dance club. In the role of clients are persons who plan to prepare for competitions and contests. The teaching staff should be represented by well-known teachers and choreographers ""with a name"".
1.4. Market Structure of Dance Schools by Union Territories
The assessment was based on the administrative centers of the federal districts, since usually it is in these cities that the largest number of schools are located, and the development of dance movements takes place there, and then spreads to other cities in the regions.
1.5. Assessment of current trends and development prospects of the studied market
Trends:
Opening dance studios covering as many dance styles as possible;
The emergence of both immersive projects and projects in unusual spaces - site-specific, in museums, with paintings, sculptures;
Increasing the variety of dancewear. Some manufacturers have already begun creating pointe shoes and leotards in various skin tones. Plus-size will soon become more affordable. There will be more men's pointe shoes, as well as clothes designed with gender neutrality in mind;
Updated editions of classical productions. Mandatory appearance of dance (movement) in drama, opera and other productions. The plot is increasingly becoming non-linear, the story itself is not so important - this is no longer a simple reflection of reality, but an attempt to create something new, one's own. Musical, artistic parts - become not integral, auxiliary components for the dance, but full-fledged ""participants"" of the performance along with the choreography.
Self-realization of trainers. Due to the closure of dance schools, the coaches lost their income. As a result, many began to lead clients on their own: they transferred trainings online and developed a personal brand;
Cancellation of various dance championships;
Rising costs for disinfectants, cleaning, etc.;
Opportunity to learn dance online.
Perspectives:
Purchasing power will decline after the pandemic, and the audience of those who can afford an annual subscription will be significantly reduced. In the near future, it is the short-term subscription and pay-as-you-train formats that look more promising;
After the pandemic, more people will think about a healthy and active lifestyle, as this strengthens the immune system and increases the body's ability to resist viruses;
Digital fitness will become commonplace. For many who will test this format during quarantine as a forced alternative to offline classes or as a new type of leisure, online training will remain a part of everyday life. For dance schools, this direction will be a good opportunity to expand the client base and monetize.
1.6. Assessment of factors affecting the market
Consider the main factors affecting the market and, accordingly, demand.
Economic
GDP dynamics
Data on the dynamics of 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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Let's take a look at some experts' assessments:
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Political
Coronavirus
Due to the coronavirus pandemic, all dance schools have been temporarily closed, causing dance school owners, private teachers and dancers to lose their income.
The pandemic has made its own adjustments to the dance industry as a whole. Since many championships have been canceled, and teams and dancers need self-realization, performances and ratings, they began to shoot more videos, some even switched to the Tik Tok platform.
Now that the restrictions have been lifted, dance halls are reopening. Clients gradually return and begin to make up for those emotions that were missed during the online experience. However, dance schools have suffered significant losses due to downtime during the quarantine, which has had a negative impact on the market.
Sports support
The federal project ""Sport is the norm of life"" started on January 1, 2019. It is part of the national project ""Demography"". The goal of the project ""Sport is the norm of life"" is to increase the number of people in India systematically involved in physical culture and sports by 2030.
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technological
Dance simulators
In the era of information technology, new approaches to leisure activities are emerging. There are many dance simulators out there.
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Online Learning
In addition to the transition of classes to an online format due to quarantine restrictions, it is possible to learn dance from video lessons. YouTube has a large number of lessons in various areas of dance.
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Социальные
Population decline
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.
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Real disposable money income
Real disposable money income per capita is income minus mandatory payments, adjusted for inflation. This factor determines the level of effective demand of buyers, is one of the key reasons for the formation of the dynamics of both retail turnover and demand for services.
Diagram 9. Dynamics of real incomes of the population of India, % to the previous year, 2012-1 half of 2020
Healthy lifestyle
Healthy lifestyle ideas have become a fashion trend in recent years.
Regardless of the direction and specifics, any dances develop and strengthen the body's abilities, have a beneficial effect on immunity. Regular training affects all systems and organs. They improve blood circulation, prevent congestion in muscles and tissues, and help develop a harmonious, beautifully built body. While dancing, students develop the muscles of their bodies, improve flexibility and plasticity, learn stretching and grace.
The desire of Indians to lead a healthy lifestyle increases the demand for the services of dance schools.
Seasonality
The dance school business has a pronounced seasonal character. As a rule, the maximum demand is reached during the period from September to December and from February to May. During the summer months, people prefer to spend more free time in nature or go on vacation. As a result, demand drops sharply.
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Concluding the assessment of the factors influencing the Indian dance school market, we will summarize the key ones in the framework of the STEP analysis.
Table 3. STEP analysis of factors influencing the dance school market
Fluctuations in exchange rates, GDP dynamics, the possibility of free education using Internet resources, the development of dance simulators, business seasonality, coronavirus, falling incomes, and also the population negatively affect the market under study.
Only general trends in the popularity of a healthy lifestyle and federal sports development programs have a positive impact on the dance school market.
1.7. Analysis of sectoral indicators of financial and economic activity
According to GidMarket's calculation based on data on the financial performance of key market companies, the gross margin in the dance services industry in India in 2015-2019 significantly higher than the level of similar financial ratios in the economy of all industries as a whole.
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Diagram 11. Current liquidity (total coverage) in the field of dance schools for 2015-2019, times
For Indian companies, the normative value of the absolute liquidity ratio is in the range Kal > 0,2 - 0,5. In the field of dance schools in 2015-2017. indicator of absolute liquidity within the normative.
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Overall, an analysis of industry financial ratios for dance schools shows declining gross margins and margins before tax, which may be a result of increased competition in the industry. At the same time, indicators of sectoral values of current and absolute liquidity, financial stability indicate the ability of most enterprises to repay current debt at the expense of existing current (current) assets.
Part 2. Competitive Analysis of the Dance School Market in India
2.1. Major players in the market
Conducting a competitive analysis in the dance school market is complicated by the fact that the networks are represented by several legal entities, individual entrepreneurs, as well as enterprises operating on a franchise basis are included in the network, but belong to separate legal entities. Thus, the first degree criterion in determining the market share of competitors was the size of the network and the estimated income per school, the second degree criterion was the revenue of the main legal entity of the dance school or a known set of legal entities of the network.
Thus, according to GidMarket, the dance school is the market leader …
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It should be noted that in this market, not all dance schools are competitors for each other. Competitors are those schools that either teach the same areas or are focused on the same target audience.
2.2. Market shares of the largest competitors
The dance school 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).
The largest operators of the dance school market in India are the chains …
2.3. Profiles of major players
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Part 3. Analysis of consumption of dance schools
3.1. Estimated per capita consumption of dance schools
Estimated consumption per capita was made by GidMarket based on the ratio of the market size of dance schools to the population of India.
Diagram 16. Consumption of dance school services per capita, 2015-2019, Rs./person
3.2. Market Saturation and Estimated Market Potential in India
In general, the dance school market has the potential for development. However, the segment is already well developed. There are many more opportunities for development in Indian regions. The further development of the market will be largely determined by the dynamics of the economic development of India as a whole and the availability of financial opportunities for the potential audience to take dance lessons.
In conditions of market saturation, an increase in volumes is possible by attracting an audience of 35+ to dance classes, which is not enough in the dance industry. It is also potentially possible to turn dancing into corporate fitness, so that employers do not buy cards for fitness clubs for their employees, but subscriptions to dances. Thus, the struggle for a potential client intensifies in the domestic Indian market.
Currently, the negative impact of environmental factors is felt, the level of competition in the dance school market is increasing, potential consumers are reducing costs in the new crisis, so the market growth due to the price factor is not expected.
Estimated market potential is estimated by GidMarket analysts as “plus” … billion Rs. to the existing volume by developing dance schools in the regions and attracting an adult audience to dancing.
3.3. Description of consumer preferences
Despite the fact that there are several main criteria for choosing a dance school, the main one is the professionalism of the teaching staff (10 points).
In second place is the atmosphere (9 points), since it is important to relax and be liberated when dancing. Clients will be most strongly held by the social ties that they acquire in the team, so a warm, trusting atmosphere should be created that unites students and teachers into a separate social group.
Also, among the important criteria, clients of dance schools note the availability of various amenities (8 points), such as free parking, a comfortable waiting area, spacious halls, water coolers and coffee machines, the ability to take a shower after training, etc. Also, most clients pay attention on the level of prices and convenience of location (7 points each, respectively).
3.4. Price analysis
GidMarket analysts believe that consumer price indices in the dance school market are similar to price indices for classes in general physical training groups. Thus, for the period 2015-2019. the average annual consumer price index for dance school services amounted to …%. For Jan.-Aug. In 2020, consumer prices for dance classes remained almost at the same level, the increase amounted to …%.
Table 12. Consumer price indices in the dance school market in India in 2015-Aug. 2020, %
At the dance school there is an opportunity to study both in a group and in individual lessons. The main difference lies in the cost. Individual training costs 2-3 times more. For each type of training, you can purchase both a separate lesson and a subscription. The Standard Membership is valid for one month and includes either 4 or 8 lessons.
Part 4. Assessment of factors of investment attractiveness of the market
Negative factors of the investment climate in the dance school market dominate over the positive ones. A comprehensive assessment of investment attractiveness factors was carried out for companies planning to enter the market, and is
Part 5. Forecast for the development of the dance school market until 2024
Analysis of the impact of recent crises on the industry
An economic crisis is a profound disruption of normal economic activity, which is accompanied by the destruction of habitual economic ties, a decrease in business activity, the inability to repay debts and the accumulation of debt obligations. This is a phenomenon of a market economy, repeating with a certain frequency, and depending on the scale, it can either concern a particular state or be of global importance. The crisis is accompanied by a sharp decline in production, bankruptcy of enterprises, a fall in the gross national product, a large-scale increase in unemployment, and often a depreciation of the national currency.
In the first half of 2020, many markets felt the impact of the pandemic and the onset of the economic crisis. Let us analyze the data on the impact of recent crises on the dance school market (the global crisis in 2008 and the currency crisis in India in 2014).
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The most significant difference between the current crisis and the previous ones is the introduction of quarantine and self-isolation, which has a critical impact on markets predominantly operating offline. In India, dance schools were temporarily closed, which had an extremely negative impact on the market.
Analysis of the impact on the state aid industry as of 22.09.20/ /
Since the introduction of restrictive measures in India related to the spread of a new coronavirus infection, the state has been providing the necessary support measures to business representatives who have encountered objective difficulties. Some of them are systemic and apply to all organizations and individual entrepreneurs, while others are intended only for companies and businessmen working in certain sectors of the economy. According to the Decree of the Government of India dated 03.04.2020 N 434, the list of industries of the Indian economy most affected by the deteriorating situation as a result of the spread of a new coronavirus infection includes OKVED 90: Creative activities, activities in the field of arts and entertainment and OKVED 93: Activities in sports, recreation and entertainment.
According to the results of a survey by the Center for Strategic Research, businesses assess the sufficiency of the announced assistance as average.
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Forecast of industry development scenarios under quarantine due to COVID-2019:
Forecasting the development of the dance school market in India is impossible without understanding the economic situation in the country, as well as the impact of the spread of the covid-19 virus and the measures taken.
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The following factors also make it possible to predict the dynamics of the dance school market:
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Diagram 18. Forecast of the market size of dance schools in 2020-2024 – under the scenario of one quarantine, billion Rs.
In conditions of economic instability, players who are customer-oriented and have developed competencies in a competitive environment will gain an advantage. Companies must clearly understand the needs of their current and potential customers, monitor trends, and analyze their behavior. This is what will allow us to formulate personalized, most relevant offers for both current and potential customers.
Analysis of existing cases of business restructuring in the industry
Dance schools have to adapt to new conditions in connection with the coronavirus.
For dance schools, the transition to online during the lockdown has become the only way to keep the team, clients, and at least some cash flow. Putting the business on pause was risky, customers could go to competitors, which means that many studios had no other choice but to learn how to work online.
During the pandemic, even dancers switched to remote form. The online format was quite popular among dance schools and their teachers. Moreover, many broadcasts were held completely free of charge.
So, many were able to “go” to those choreographers that they couldn’t get to because of work, study, or simply because it’s too expensive to fly to another country for the sake of one class.
For some, online became an incentive, especially for those who were shy of the views, of the audience. However, this format still could not replace what the teacher gives in the classroom live (offline). Therefore, soon the number of viewers on the air began to decline.
Currently, dance schools have to distance students with markings, conduct regular disinfection and airing of the halls after each training. Measure the temperature. Entry by appointment only. This rules out more people in the studio than is allowed. Some schools continue to upload video lessons online, and also continue to conduct classes online.
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators
From the side of environmental factors, the dance school market in India is negatively affected. Fluctuations in exchange rates, GDP dynamics, the possibility of free education using Internet resources, the development of dance simulators, business seasonality, coronavirus, falling incomes, and also the population negatively affect the market under study. Only general trends in the popularity of a healthy lifestyle and federal sports development programs have a positive impact on the dance school market.
Despite the fact that there are several main criteria for choosing a dance school, the main one is the professionalism of the teaching staff. In second place is the atmosphere, since when dancing it is important to relax and be liberated.
For market participants, the following can be recommended:
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Diagrams
Diagram 1. Dynamics of the market size of dance schools, 2015-2019, billion Rs.
Diagram 2. Market structure of dance schools by type, %
Diagram 3. Structure of service provision of dance schools in India by Union Territories, %
Diagram 4. Dynamics of India's GDP, % to the previous year, 2012-2 quarter 2020
Chart 5. Expert forecasts for a decline in real GDP in India in 2020 (baseline/neutral scenario), %
Diagram 6. Monthly dynamics of the US dollar against the rupee, Rs. for 1 US dollar, 2015-Sept. 2020
Chart 7. Internet penetration in India among the audience of 16 years and older, %, 2015 - 2019
Diagram 8. Dynamics of the population of India, million people, as of 01 Jan. 2012-2020
Diagram 9. Dynamics of real incomes of the population of India, % to the previous year, 2012-1 half of 2020
Diagram 10. Profitability before tax (profit of the reporting period) in the field of dance schools in comparison with all sectors of the Indian economy, 2015-2019, %
Diagram 11. Current liquidity (total coverage) in the field of dance schools for 2015-2019, times
Diagram 12. Business activity (average receivables turnover period) in the field of dance schools, for 2015-2019, days days
Diagram 13. Financial stability (security of own working capital) in the field of dance schools, in comparison with all sectors of the Indian economy, 2015-2019, %
Diagram 14. Shares of the largest competitors in the dance school market in 2019, %
Diagram 15. Dynamics of the total revenue of the largest dance school market operators (TOP-4) in India, 2015-2019
Diagram 16. Consumption of dance school services per capita, 2015-2019, Rs./person
Diagram 17. Criteria for choosing a dance school, points
Diagram 18. Forecast of the market size of dance schools in 2020-2024 – in case of a single quarantine scenario
Diagram 19. Forecast of the market size of dance schools in 2020-2024 – in the scenario of two quarantines
Tables
Table 1. Dance styles
Table 2. Expert forecasts for the decline in real GDP in India in 2020, %
Table 3. STEP analysis of factors influencing the dance school market
Table 4. Gross margin of the dance school industry compared to all industries in India, 2015-2019, %
Table 5. Absolute liquidity in the field of dance schools in comparison with all sectors of the Indian economy, 2015-2019, times
Table 6. The main companies participating in the dance school market in 2019
Table 7. Basic information about participant No. 1 of the dance school market
Table 8. Basic information about participant No. 2 of the dance school market
Table 9. Basic information about participant No. 3 of the dance school market
Table 10. Basic information about participant No. 4 of the dance school market
Table 11. Basic information about participant No. 5 of the dance school market
Table 12. Consumer price indices in the dance school market in India in 2015-Aug. 2020, %
Table 13. Average prices in the dance school market by Union Territories, Aug. 2020, Rs.
Table 14. Assessment of factors of investment attractiveness of the dance school market
Table 15. Assessment of the impact of recent crises on the industry
Table 16. Analysis of the impact on the industry of the state aid proposed as of April 22.09.20,
Table 17. Forecast indicators for the basic and pessimistic scenarios for the development of the crisis, %
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