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Demand for quality education will boost the Coaching Classes Market in India

04-10-2012 03:56 PM CET | Science & Education

Press release from: Netscribes India

Netscribes (India) Pvt. Ltd. launches a report on the Coaching Classes Market in India 2012 as part of Netscribes’ Education Industry Report Series.

Mumbai, India – April 9, 2012 – Netscribes (India) Pvt. Ltd., a knowledge consulting solutions company, announces the launch of its report Coaching Classes Market in India 2012. Indian education sector is considered to be recession proof primarily due to the willingness among consumers to spend on this sector. Across the board, from the upper classes to the bottom most stratum of the social hierarchy, expenditure on education accounts for a sizable portion of family incomes. Coaching classes segment, though unorganized and unregulated, boasts of high profit margins. Due to the changing economic scenario, need for extra and supplemental education is urgently felt by both students and their parents. Known as the world of shadow of education, coaching classes have grown phenomenally in India and is only to proliferate further in future.

The report begins with an overview of the education sector in India with a clear segmentation of the Indian education system. This is followed by a representation of a macro-overview of the system divulging key data points including literacy rate in India, demographic split in education, budget allocation for education and Five year plan outlay for the same. As we proceed, education sector has been described briefly along with its market size and growth aided with inclusion of students enrolling for higher education and expenditure on education by Indians. This is followed by the overview on coaching classes market along with market size and growth as well as the market segmentation. An analysis of cost incurred and revenue garnered is provided with the help of a cost and revenue model proceeded by the business model of coaching classes. The section is concluded by a Porter’s Five Forces Analysis. The following section deals with the sub-segments in the coaching classes sector detailing each sub-segment’s description.

An analysis of the drivers explains the factors for growth of the market and includes expenditure on education, lucrative business opportunity, rise in number of students opting for foreign education, working parents with higher disposable income, Right to Education Act and infrastructural bottlenecks in formal education. As education in India is considered to be the only means towards betterment of one’s social status; spending on education has never taken a hit even in times of recession. Parents indulge in spending almost an equal amount of primary school fees in coaching classes to further their kids’ exposure and grooming. Owing to the absence of Government regulations, a successful coaching institute can hike program fees thus making it extremely lucrative from a business perspective. Increase in number of students opting for foreign education has also led to enhanced demand for these classes. With rising number of students looking at foreign shores for higher education, cracking entrance tests at such universities translate into rising demand for coaching institutes. Further, Right to Education Act forbids teachers of government schools from taking private tuitions which creates room for coaching institutes to capitalize upon. Another factor that has led to the growth of this sector is that of high incidence of working parents in a family. With both parents working, family income rises and increases the probability of education expenditure. Finally, the infrastructural bottlenecks in the formal education system with absence of quality teachers and proper syllabi will boost the coaching classes market. However, the sector is also facing certain challenges. Factors such as change in examination format are an impediment for this sector.

The major trends identified include online tutorial increasing base, coaching classes for beginners, coaching institutes foraying into formal education system, franchising mode of operation, introduction of package courses and increased PE activity.

The competition section offers a competitive landscape of the players by providing their financials and key financial ratios. It also provides basic information regarding the organizations. Key financial parameters constitute the financial performances of the players which are followed by business highlights. Strategic recommendations followed by appendix on key ratios comprise the concluding section of the report.

About Netscribes (India) Pvt. Ltd.

Netscribes (www.netscribes.com) is a pioneering knowledge consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, publishing services and customized knowledge database creation. At its core lies a true value proposition that draws upon a vast knowledge base.

Netscribes India Pvt. Ltd.
3rd Floor, Saberwal House
55B Mirza Ghalib Street
Kolkata - 700 016
West Bengal, India
Tel: +91 33 4064 6215
sales@netscribes.com

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