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Last Updated:- 2020-10-12
India is home to one of the largest populations of infants, with a population of nearly 15 crore infants, aged 0-6 years of age and in need of early care.
Due to growing competition for job opportunities and diminishing resources, it has become very common for parents to work twice as hard to provide their children with a decent future, which is why households with double incomes have seen growth in the last few years.
This is why opportunities in the Preschool Franchise Market are booming in Tier-I & II Cities Opportunities in Small Towns Cities According to estimates, the Indian preschool sector is currently highly under-recognized with just 17 percent of children in the 1.5-4 year age group attending preschool. The rate is much lower in smaller towns where fewer than 10% of children attend preschool.
Due to competition within the market, particularly in metro cities, pre-school franchise brands are targeting smaller cities and towns to penetrate their brands. The increasing awareness of pre-schools where children's mental, physical, and intellectual treatment is taken care of at an early age has also attracted more and more potential female franchisees to operate pre-school franchises. Significant development has been seen in small towns and cities, as well as the popularity of pre-school education that has increased in the past few years and will rise in the future as we do.
The pre-school segment in India is estimated at US$ 2.1 billion and is projected to rise by 23 percent by 2022.
Parents all over the world are pursuing quality education for their children. With the changes taking place in India's social and economic structure, the need for early education has increased, particularly in Tier II, Tier III cities.
The pre-school segment in India is estimated at US$ 2.1 billion and is projected to rise by 23 percent by 2022. With growing awareness among parents in Tier 2 and Tier 3 cities, the penetration rate for the pre-school segment is expected to rise to 25%. The pre-school market in smaller cities is rising at a staggering 120 percent per year, far higher than the rise in towns. With increased competition in metro cities, franchises have shifted their focus to smaller cities for more revenues.
Below are some of the factors responsible for the unprecedented growth of the pre-school sector in Tier II and Tier III cities.
There was a time when 1,000 rupees were unheard of for the education of a child below 5. Nevertheless, with a shift in lifestyle and a rise in disposable income for people living in small towns, pre-school franchises in these areas have increased. People want to provide their children with the best possible education starting from kindergarten age and are willing to spend some money on it.
Brand Name Matters
There is a huge demand for preschools in rural India, but people in Tier ii III cities prefer a well-known name. Parents are apprehensive about sending their children to any local pre-school location. In small towns, it has become a trend to send their children to a big-name pre-school because they have confirmed their child's growth.
Earlier, parents from small towns tended to teach their children at home until they were five years old before they went to the right school. However, they have now recognized that educational success is all about the early bird catching the worm. Parents now agree that a child needs adequate training before attending a formal school. Pre-school closes the educational divide.
Opportunity for the Franchisees Pre-school industry is witnessing a significant increase in demand from Tier II III cities, particularly for branded pre-schools.
Earlier pre-school franchises were pessimistic about joining Tier II and III cities, but now they have become positive about the rise in disposable income rates and the number of working parents in these cities. Realizing the promise of pre-schools in small towns, more and more franchises are establishing their presence there.
Besides, factors such as low rents and more extensive infrastructure relative to metros also allow pre-school franchises to set foot in these areas. The average cost of setting up a pre-school in smaller cities is about 50 percent lower than in metros.
Tier 2 and Tier 3 cities are becoming more and more business-oriented. They get used to the company, including one involving a franchise. The franchise business model has been widely accepted by major cities in the country. In particular, the pre-school franchise is gaining popularity due to the need for education. The demand for a good education, from the early stages of a child's life, has increased the parental interest that has led to the benefits of a franchise in small cities. Small cities are happy to embrace the concepts of preschool franchises. With the advantages of having low rents and convenient flow of workers, these cities are getting more interested in franchises. Franchise preference is seen not only in metro cities but also in other small cities. Smaller cities are also contributing to the development of brands.
Franchise in smaller cities is important because as a brand we, Teeny Beans want to extend its quality pre-school education to these places as well. They don't want to leave a single house. The purpose is not to abandon a single city where Teeny Beans will not be present, because it is the Multinational Preschool Chain that follows the No Royalty scheme. And it's your hard work and commitment, and it's your reward. Intending to get children closer to the education they deserve at an early level, Teeny Beans aims to be the number one program with a clear core and improved program. Availing the franchise of this company would help to make a lot of money, both economically and ethically.
There are some reasons why these small cities turn out to be perfect franchise locations. Let us know the reasons behind this.
The first thing that comes across a franchise is the renting of a preschool unit. Rent is going to be a lot less in a small town than a metro town. This way, it is easier for the one who owns the franchise to retain finance. They can make more than they can lose money. The cost of running a preschool franchise is also lower in several ways.
Small towns are usually seen to be more interested in trying out new stuff. They're trying to get access to new services. Especially when it comes to education, they are more interested in understanding how the system works. We would want their children to get a decent education right from the early stages of life.
Teeny Beans International Preschool is seeking to get the best out of the smaller cities. They work with the best teachers who are educated and well-coordinated. They make sure the children get the best information and education.
Ways by which Tier 2 and Tier 3 cities can accommodate a franchise
Published By:- Teeny Beans