KOCHI: The pre-school market in Kochi is huge and will see a rapid growth in the coming years, said a study report. The report also cites how the footprints of various international preschool brands have led to a major change in the educational curriculum.
After identifying a surge in the demand for preschools in tier II and tier III cities, many of these international brands are making a beeline to these places. Kochi, a tier II city, has become a fertile ground for these international brands.
According to business experts, the preschool market in Kochi commands a value of Rs 5,000 crore.
“The demand for preschools increased in the city due to various reasons. The prime ones being increasing demand for first-rate pre-primary education for children, improved standard of living, increase in the number of working mothers, an increase in nuclear families and an increase in disposable personal income,” said a preschool teacher.
Reela George, a homemaker and a graduate in education, said, “Not a day passes without an email landing in my inbox describing how lucrative it is to set up a preschool franchise. The only things that I have to come up with are an initial investment and space.”
“The brochure sent by Kidzee, one of the leading global preschool brands, told me how the preschool business had reached Rs 13,300 crore by 2015-16. It also tells how only 1/100 children are enrolled. So the franchise will be able to tap the gap. The franchise owner can also expect a return of investment of 150 per cent over a period of six years,” she said.
According to Reela, the brochure gave a projected enrollment growth rate of 25 per cent per annum.
“The person who opens the franchise will get franchisee support like a comprehensive starter kit, branch design and development support, learning resources, books and publications, training and support from skilled staff, supports in enrollment via marketing and advertising and promotional support,” she added.
The franchisee also gets a six-year renewable franchise agreement. Some of the major brands that have franchises in Kochi are Kidzee, Kangaroo Kids, Billabong, Hello Kids, Eurokids and Little Elly.
According to Reshma Feroz, who is a franchise holder of Kangaroo Kids, in order to begin the pre-school she made an initial investment of around Rs 11 lakh and this included support materials.
“The center charges a fee of 14 per cent per admission,” she said.
“Even though the fee structure is slightly on the higher side like between Rs 54,000 to Rs 60,000 per annum, the smart curriculum, the infrastructure, safety and security provided by these branded pre-schools attract the parents,” said Reshma who has been running the Kangaroo Kids pre-school for past five years.
Lucrative business
The demand for pre-schools increased due to demand for first-rate pre-primary education for children, improved standard of living, increase in the number of working mothers, an increase in nuclear families and an increase in disposable personal income
25% The projected enrollment growth rate is 25 per cent per annum
13,000 cr Value of pre-school business in 2015-16
All about comfort and safety
When it comes to the comfort, safety and education of their children, parents don’t think twice before shelling out the big bucks. According to Reshma Feroz, a techie, branded pre-schools offer a sense of security.
“We know that we will get our money’s worth. The classrooms are specifically designed and the staff is well-trained,” she said.
“This is what we want for our kids. Today, when both the parents are working and don’t have a solid backup in the family,pre-schools come as a godsend gift. But, parents need to check up the credentials of the pre-school before sending their kids. They should check whether the establishment has all the facilities needed to cater to small children. Even the transportation system of the school should be checked. The various incidents that have taken place in Ernakulam district should make the parents wary,” said Shibin Varghese, father of a pre-schooler. He said the parents need to check whether the pre-school they have selected for their kid is registered and has a valid licence.
All these branded pre-schools are registered and have valid licences. According to Reshma, earlier, the registration process was done by the corporation and the pre-schools were categorised under the parallel college.
“But after the Maradu incident, a new system has come into force and we have to file for registration with the Social Justice Department. We have already filed our papers,” she added.