India preschool and Day Care Services
Market Size: The Preschool
and Day Care Services Market has been defined as the total revenue
generated from one time admission fee
and annual tuition fees earned by offering various child centric programs
(Childcare, Playgroup, Nursery, Kindergarten (LKG/UKG)) for toddlers in the age
bracket of 4 month to 6 years. The revenue doesn’t include transportation fees,
meal charges, the revenue generated by preschools as a part of K-12 schools and
the ones located in residential areas. Only pure-play preschools and formal
child care centers located at commercial areas have been considered while
computing the market size. For foreign-origin schools, only the revenue
generated from its Indian branches have been considered in the market definition.
Organized Market: Organized market includes those preschools
which have an established franchise or COCO model across various regions in the
country. Organized preschools centers are obliged to follow the norms set by
the preschool companies such as fixed curriculum, staff training and others.
The preschools which have more than 50 chains across PAN India have been
considered in the Organized market. Likewise, only those Day Cares centres have
been considered as a part of the organised market space which are following
certain norms in terms of branch expansion, curriculum, training & care
provided.
Unorganized market: Unorganized market includes those preschools
which have less than 50 centres across India. Unorganized market is majorly
dominated by preschools & Day Care centres located in only 1 location.
These schools majorly have their own (generally informal) norms, regulations,
fee structure and others.
Child/Day Care program: Child/Day Care program constitutes of
providing caring and supervision of children by day/night care centers with
nannies, teachers or other providers. The child care programs majorly cater to
a population group of 4 months to 6 years age population.
Playgroup: Playgroup program majorly focuses on children
in the age group of 1.5 - 2.5 Years. The objective of the program is to train
children by learning and practising child-development through a scientific
approach. Children in these programs majorly require personalized attention so
the schools primarily (not always) keep a ratio student is to teacher ratio of
around 10:1
Playgroup: Playgroup program majorly focuses on children
in the age group of 1.5 - 2.5 Years. The objective of the program is to train
children by learning and practising child-development through a scientific
approach. Children in these programs majorly require personalized attention so
the schools primarily (not always) keep a ratio student is to teacher ratio of
around 10:1
Nursery: In Nursery, children are engaged in school
readiness activities such as reading, writing, counting, number recognition and
problem solving in a fun filled but purposeful manner. Children in the age
group 1.5 - 2.5 Years are the major target audience for this program
Kindergarten: Kindergarten includes Junior Kindergarten and
Senior Kindergarten with children in the age group of 2.5 years to 6 years of
age. Kindergarten majorly focuses on preparing a child for success in formal
schools and conducts various other activities in the areas of language,
numbers, general knowledge, music, art and others.
Corporate Crèche: Corporate Crèche facilities include child
care services which is sponsored or managed by employers. These facilities may
either be onsite or offsite as per requirements and norms set by the owners.
Hypothesis Creation: The research team initiated the market
research by first framing a hypothesis about the market by a deep analysis of
existing industry facts obtained from magazines, journals, broker reports,
investor presentations, CEO Interviews and annual reports of major preschools
and Day Cares. Other sources including Ministry of Education India, Ministry of
Statistics India & other Government Articles were also looked upon.
Hypothesis Testing: The research team conducted computer assisted
telephonic interview (CATI) with several industry professionals including
decision makers in various branded preschool and Day Care centers throughout
the country. The industry professionals included several management executives,
franchise marketing & support heads, business development managers,
business development heads and other authorities. Structured interviews were
conducted through telecom with several industry veterans and market experts including
major decision makers from Kidzee, EuroKids, Hello Kids, Little Millennium,
Shanti Juniors and other preschool chains. The analyst at Ken Research collated
their insights on the market onboard and to seek justification to the
hypothesis framed by the team. Additionally several B2B clients from different
sectors including government offices have been interviewed to understand their
perspectives, needs, requirements and the prices they are willing to pay and
policies in pipeline.
Sanity Checking @ Decision Tree
Analysis: Data has been collected and verified
through cross-sanity checking the opinion and facts received from interview
with the hypotheses framed from public databases. The team has then cross
verified the data by conducting both bottom-to-top and top-to-bottom analysis.
Future Forecasting via Poll Opinions
and Statistical Tools:
Multi-Factor regression was conducted on the lag variables by identifying the
independent and quantifiable variables directly affecting the market.
Forecasting was done by using SPSS statistical tools however, the conclusions
thus framed from the regression were not adopted for the future market analysis
due to the presence of large bias and error term.
Future
market was then build through opinions and analysis obtained by conducting poll
opinions & CATI’s to various industry experts & management.
Interpretation and Proofreading: The final analysis was interpreted in the
research report by our expert team well versed with the Preschool and Day Care
Services Market.
Market Sizing:
Firstly,
we mapped out the major organized players in the industry which have more than
50 centers across PAN India
Thereafter,
we reached out to multiple centres of these organized preschools to accumulate
data related to the admission fee & tuition fee charged across various
programs including Day Care, Nursery, Playgroup & Kindergarten. Other data
points collected included batch size to finally cumulate average revenue earned
by an organized preschool.
Thirdly,
we built a bottom to top model from the strata sample of 40 school centers to
identify the average enrollment per child and average revenue per preschool.
Lastly,
when the final outlay of the market size was built, we reached out to various
industry experts to sanity check our data.
Limitation:
Number
of centres covered for all the branded schools are considered from their annual
reports/company website/management interviews which might include the
schools/school branches which have been closed or might not included new
schools/school branches that have opened.
We
have considered a constant 10% growth rate every year, for fee structure. This
data may or may not be in sync with the actual fee growth for every preschool
operating in the country. Hence, we have taken a margin of error into consideration
which should not be more than 5-10%.
Average
enrollment per schools has been considered to stay constant over the last and
next 5 years.
Sample
strata has been considered for branded preschools to compute monthly fee
structure and average enrollment per centre; Sample Size Considered:10 Schools
Chains having 4-5 schools within each in different locations.
Some
data points have been collated from management/industry expert opinion which
may or may not match the actual numbers. The analysts at Ken Research have run
a sanity check and the margin of error should not be more than 5-10%
Future
Growth model has been built on the basis of anticipated number of schools
expected to open in next 5 years, year on year growth rate is derivation from
the model variables of fee growth, enrollment growth, and number of schools
growth every year. This year on year growth may not match with the anticipated
future actual numbers.
Various
assumptions have been considered while modelling market analysis such as, it has
been assumed that a branded/organized schools will be at least 25-30% more
expensive than an unbranded/unorganized one. Proportionate Share of Number of
preschools available from different secondary sources has represented the share
for the overall number of preschools PAN India.
Variables Considered:
Number of New Birth: An increase in number of new births would increase
the demand of preschool and Day Care services with more number of toddlers in
the age bracket of 4 months to 6 years. This would eventually increase the
market size.
Number of Nuclear Households: An increase in the number of nuclear
households would increase the demand for Day Care and corporate Day Care
facilities. With no helping hand of relatives living in joint family structures
such as grandparents, to take care of the child, parents usually opt for
preschool and Day Care services for the well being and early development of the
child. Thus, this would also facilitate an increase in market size.
Working Female Population: Since mothers usually take care of the
children, an increase in the population of working women in the country would
automatically generate a higher demand for Day Care services for children below
the age of 6 years resulting in a proportional increase in the overall market
size.
Forecast Modelling:
The
report applies Correlation and Regression analysis methods to forecast the
future of the India Preschool and Day Care Services Market. However, the
capabilities of SPSS and predictive analytics software have not been leveraged
to determine the relevant indicators used for forecasting this industry. This
is because its results were found to have underestimated the future market size
when compared to the data collaborated through CATI’s and industrial analysis.
Moreover aggressive company expansion plans, robust growth in number of
centers, growth in baby population and increase in nuclear family structures
are other extraneous variables which would have tremendous positive impact on
the future market size.
In
the present case, preschool and Day Care services market revenue has been taken
as the dependent variable and other variables such as number of new birth,
number of nuclear households and working female population have been taken as
independent variables.
For more information on the research
report, refer to below link:
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