How is the Experiential Learning Industry Positioned in India?
For a very long the
India Education system has been plagued to the traditional classroom learning
methodology, unconsciously promoting rote learning among students. Students
were just focused on getting good marks in school by memorising concepts to
stay ahead of the growing competition. It was only after 2010 when educational
institutes and start-ups made efficient use of technology and the concept of
experiential learning and “learning by doing” methodology gained traction among
parents and students. Ed-Tech start-ups in India are trying to take over the
unorganised tuition classes industry by providing a technology driven, convenient
and fun educational solution to students. Such kind of products also to address
to the pain-points of parents such as increasing futile screen time of kids,
lack of time to parents due to changing lifestyle and growing future
competition & job security concerns.
There are different
kinds of e-learning start-ups providing different type of solution. Initially
e-learning consisted of learning videos and virtual live classes. Two important
concepts namely activity kit subscription and K12 E-Learning/Experiential
Learning solution have gained traction in the last 5-6 years.
Activity kit
subscription solution is for 2-14 years old kids. Subscribers usually get 1 box
every month that includes theme based multiple hands-on activities, worksheets,
guidebook and other complimentary components. On the other hand, e-learning
solution majorly focuses on reinforcing academic learning through animated
educational videos, stories, educational games, quiz, personalised learning
path, progress tracker, live classes and other AI based features on their app.
Currently there are
multiple educational solutions in the market, however there exist a gap such as
increasing number of drop-outs, unavailability of material in regional language
and others that has lead to limited adoption in tier 2 and tier 3 cities. Such
gaps can be filled by an integrated product that promotes learning by blend of
activity kits, educational videos, live-classes and other AI based features. Parents
currently need to subscribe to multiple educational product to engage their kid
in the after-school time in a fun and educational manner. There is a need of a
one-stop-shop solution that fulfils all the after school requirement of
parents.
Overview of India K8 Activity Kit Subscription
Industry
The activity kit
subscription industry is at its nascent stage and has gained traction during
2015-2016. As of 2020, the industry has penetrated <1% of its TAM with ~
subscribers across the country. The growth is driven by key factors such as
increasing awareness about early childhood development increase in Per capita
Income Levels & changing lifestyles. The average subscription renewal rate
in the industry is ~%. The industry revenue has increased from INR ~ mn in
FY’15 to INR ~ mn in FY’2020 with a double digit y-o-y growth rate. Majority of
revenue is coming from 3 month subscribers who have to pay INR 1,500-4,000 as
subscription fee. The major challenge in the industry is lack of awareness;
companies have to spend a lot of their time to explain the benefit of the
product and its value for money which leads to high customer acquisition cost
and high lead conversion time. Majority of conversions also takes place on the
sales calls and there are very few subscribers who directly subscribe through
the website. The industry also faces the challenge of demand seasonality,
majority of parents so not wish to subscribe before and during examination
month and majority of demand can be expected during vacations in the month of
March to June.
How is the Activity Kit Market Segmented?
By Age Group: Majority of demand comes from 6-10 years old
kids as they are capable of doing the activities alone without parents help and
relatively have less academic pressure & have ample of free time. Demand
from +10years old is growing at the fastest pace after introduction of
interesting and attractive activities by companies such as Flintobox, Magic
Crate and Mel Science.
By Region: Tier 1 contributes majority share to the
overall revenue followed by tier 2 and tier 3. Better awareness and increasing
number of both working parent has lead to growing demand in tier 1 cities such
as Chennai, Bangalore, Mumbai, Delhi, Kolkata, Hyderabad and Pune. Companies
should focus on social media marketing to reach to different geographies. B2B
partnerships with schools can also help companies to reach parents in tier 2
and tier 3 cities.
Competitive Landscape in K8 Activity Kit
Industry
The competition in
the industry is concentrated with top two players contributing +90% of the
revenue in FY’20. Flintobox and Magic Crate have created their brand value by
first mover advantage. IntelliKit and Xplorabox are primarily focusing on
activity kits for <6 years old kid. All the companies are competing on the
basis of subscription price, product quality (use of child friendly material),
comprehensiveness of the product, geographical presence, number of activities
in a single box, and after sale services. A strong marketing, sales and product
development team are key to success in the industry.
Key Segments Covered:-
K8 Activity Kit Industry Revenue By Age Group
2-4 years
4-6 years
6-8 years
8-10 years
10-12 years
+12 years
K8 Activity Kit Industry
Revenue By Subscription Type
3 Months
6 Months
12 Months
Others (1
Month, 2 Month & 9 Month)
K8 Activity Kit Industry
Revenue By Regions
Tier 1 Cities
Tier 2 Cities
Tier 3 Cities
K12 E-Learning Industry
Revenue By Grade
UKG and LKG
Grade 1-5
Grade 6-8
Grade 9-12
Key Target Audience:-
E-Learning Companies
Activity Kit Companies
Toy Companies
Schools
Pre-Schools
Government Authority
Time Period Captured in
the Report:-
Historical Period:
FY’2015-FY’2020
Forecast Period:
FY’2020-FY’2025
Companies Mentioned:-
Indian K8 Activity Kit
Subscription Competitive Ecosystem
Flinto
(Flintobox and Flintoclass)
Magic Crate
Xplorabox
Einstein Box
Intellikit
Math Buddy
Indian K12 E-Learning
Competitive Ecosystem
BYJU’s
Meritnation
Cuemath
Toppr
Vedantu
PlanetSpark
CampK12
For More Information on
the research report, refer to below link:-
India
Experiential Learning Market
Related Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
