Was crossing this billboard, yesterday at Chowringhee, and the name of this coaching institute PACE was clearly visible from a distance. Something rattled inside and went for a small dive, just to understand the SOW. The size of coaching in India and how much a geographic location can be of any advantage. In my research, read how a dusty, sleepy, bustling industrial KOTA is now as per our hon PM Mr. Narendra Modi is now the Kashi of assisted education.
“Indians, prefer spending more on education over healthcare”, however what happens when schools and colleges are closed and social distancing is the biggest keyword, we have read in last 6 months. Like every other industry, big or small, has been impacted by Covid19. In this paper, we will analyze, to what extent, education, especially a traditional coaching institute such as Pathfinder will be affected and the ongoing relationship between a Coach and a Coachee (student).
Unfortunately, every industry is going digital, except the coaching industry, and it’s a corroborated fact. Students, want most things, if not everything for ‘free’. So, its very important to establish value, before numbers. I believe, that the coaching market can be improved with better search techniques. With players such as BYJU, Toppr.com and other startup coaching centers coming up, existing leaders must expedite the branding, marketing process to improve sales funnel. In private customer expenditure in India, Education happens to be among the top 5 fast growing commodities. The growing competition plus increased expectations from parents has, what some may define, as ‘domino effect’. Meaning, having coaching classes is viewed as a crucial step which, is very much evolved/evolving side by side to the mainstream education system.
Do You Know- The All India Pre Medical Test (AIPMT) has around 1,600 whereas approximately 1,70,000 enter the exams. Similarly, 25,000 seats in the IITs and NITs 14,00,000 understudies show up for the Joint Entrance Exam (JEE), every year. According to studies, by 2021 there would be 9.6 Million online education users in India. Under the Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA), over 2 crores Indians were educated (rural). To match current demand, there is an additional requirement of 200,000 schools, 35,000 colleges, 700 universities and 40 million seats in the Coaching/training centers. More are getting educated.
So why exactly there is this perennial growth of coaching industry in India?
1. Relatively low quality of teaching, especially in Govt.
2. High competition
3. Increased disposable income
4. Peer/parental pressure
5. Fear of exams
6. Huge rise in web infrastructure, mostly by smartphones and easy data plans
7. Digital payments getting acceptance by the day
8. A matter of pride and prestige
Some Quick Facts
· Data from the National Sample Survey Office’s 71st round survey reveals that more than a quarter of Indian students, over 70 million, take private coaching, and around 12 per cent of a family’s expenses go towards private coaching.
· In FY 2019, BYJU’s revenue was $194 million (Rs 1,440.9 crore) and Aakash Institute ($165 million, or Rs 1,225.3 crore).
· Indian Coaching Industry is a $40 Billion industry growing at a CAGR of 35%.
· There are over 1 million coaching classes across India.
· India's advanced education fragment is to reach $35.03 billion by 2025.
· Coaching industry is valued at INR 270,000 Crore, growing at a rate of 35%
· 70% of the guardians favor of training or coaching establishments, ASSOCHAM.
· India had 36.64 million understudies interested in advanced education in 2017-18.
· Students prepping up for entrance tests is projected to become a Rs 70,200 crore business by 2021, CRISIL
· 87% of younger students and up to 95% of the higher grades go to private coaching institutes, ASSOCHAM.
· Around 3.43 million competitors in 2018, had tried out the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 2016-20 plan, Govt Data.
· 29% of India's population is in the age group of 0-14 years
· The GoI has permitted 100% Foreign Direct Investment (FDI) since 2002.
· India has become the second largest market for e-learning after the US
· e-Learning is expected to breach US$ 5.7 billion by 2020
· 35% of Indian students take coaching in their lifetime
· 33% of the middle-class income is spent on their children's education
The business must adapt useful technologies, essentially to extract the value of time. There are ERPs which can be automated crucial functions, such as enquiry management, fees management, and admission management. We also need to consolidate services, such as module/test packages, live classes, start selling online courses. Conducting tests online, mock exams and practice tests where students can interact with teachers must be put into practice.
