Consumer Discretionary

Market Trends In The School Industry

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<p style="text-align: justify;">Schools are as essential to a nation as the health care industry or as necessary as providing food and water to the citizens. Regardless of the political party in power and the effects of inflation, schools are and always will be a priority domain for the country.&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;">Market Trends</span></h2><p style="text-align: justify;">Post covid and also as a natural process of evolution, the key market trends in the School Industry are enumerated below:</p><p style="text-align: justify;"><strong>Focus on Tier 2 Cities </strong></p><p style="text-align: justify;">Earlier, quality education was available only in the Metros and Tier 1 cities. With great success, it has now started coming to Tier 2 and even Tier cities. Due to this development, a void in our education system has begun filling up.</p><p style="text-align: justify;">Some influential players have already stepped into this earlier neglected sector and have even become unicorn companies due to their success in Tier 2 and Tier 3 cities. Hence, it is good from the business point of view and is also good for the country since quality education is now reaching Tier 3 cities.</p><p style="text-align: justify;"><strong>School Management Outsourced</strong></p><p style="text-align: justify;">Outsourcing of the Management of Schools is now getting more and more popular. School management experts run the school on behalf of the owners, who, in most cases, are unaware of the best practices for running a school. Profit sharing is done with the owners on prior agreed terms.</p><p style="text-align: justify;">I expect the Outsourced Management Model of running Schools to gain more popularity in the coming months.</p><p style="text-align: justify;"><strong>Hybrid Schools</strong></p><p style="text-align: justify;">Online and offline (i.e., face-to-face) teaching is now here to stay. This would imply more training of teachers in the delivery of online classes, greater requirements of IT network infrastructure by schools, larger requirements of bandwidth, and so on.</p><p style="text-align: justify;">This is good news for the IT industry, which should rise to the occasion and support the school industry in providing IT infrastructure and manpower to schools.</p><p style="text-align: justify;"><strong>Residential Schools</strong></p><p style="text-align: justify;">Residential Schools have a bright future. Given the high pollution levels in the metro and the other big cities, plus the decreasing time available to parents as in many cases both parents are working, parents are now likely to increasingly opt for Residential Schools in cities like Dehradun, Mussoorie, Kasauli, etc.</p><p style="text-align: justify;"><strong>Entrepreneurship</strong></p><p style="text-align: justify;">This subject is becoming increasingly popular and is likely to grow in the coming years. Schools that claim to be &lsquo;Entrepreneurship Schools&rsquo; have already begun operations in some cities.</p><p style="text-align: justify;"><strong>School Fees</strong></p><p style="text-align: justify;">Schools will likely face more difficulty increasing fees due to government controls and populist measures. If this happens, the first casualty would be the salary of teachers.</p><p style="text-align: justify;"><strong>Addition of more Technology</strong></p><p style="text-align: justify;">In an attempt to show that they are not left behind in the Ed-tech blitzkrieg, schools are now likely to opt for more technology, like Virtual Reality, to augment the teaching-learning process in their school.&nbsp;</p><h2 style="text-align: justify;"><span style="font-size: 14pt;">Summary</span></h2><p style="text-align: justify;">Like any other industry, the School Industry is continually evolving. It is a good time to invest in the Outsourced Management Model of Schools. It is also a good time to step into Tier 3 cities to fill the void there.&nbsp;</p><p style="text-align: justify;">&nbsp;</p><p><span style="font-size: 10pt;"><em>This article was contributed by our expert <a href="linkedin.com/in/dr-colonel-atul-bhandari-01684280">Colonel Atul Bhandari&nbsp;</a></em></span></p><h3><br /><span style="font-size: 18pt;">Frequently Asked Questions Answered by Colonel Atul Bhandari</span></h3><h2><span style="font-size: 12pt;">1. What are the advantages and disadvantages of the outsourced Management Model of Schools?</span></h2><p><span style="font-size: 12pt;"><strong>Advantages </strong></span></p><ul><li style="list-style-type: none;"><ul><li><span style="font-size: 12pt;">Management of the school by experts in the domain, leading to better results in all departments of the school.</span></li><li><span style="font-size: 12pt;">Better parent satisfaction, as they would know that the school is in the hands of people who know how to run the school being experts, rather than the school being in the hands of the owners, who may be unaware of the best practices in the school industry. </span></li></ul></li></ul><p>&nbsp;</p><p><span style="font-size: 12pt;"><strong>Disadvantage </strong></span></p><ul><li style="list-style-type: none;"><ul><li><span style="font-size: 12pt;">If owners resort to micro-management or interference in the day-to-day functioning of the school, it would be a disadvantage for the smooth functioning of the school.</span></li></ul></li></ul><p>&nbsp;</p><h2><span style="font-size: 12pt;">2. Could hybrid education be the future educator in the field of higher education ?</span></h2><p><span style="font-size: 12pt;">Yes. Schools will have to transform into hybrid schools. Having schools in online and offline mode has already started in some schools. Moreover, in case we have a four day school and one day at home, it would save on school electricity cost and school bus diesel cost.&nbsp;</span></p><h2><span style="font-size: 12pt;">3. How can we improve technology in Schools ?</span></h2><p><span style="font-size: 12pt;">We can enhance Technology in schools by the following measures :</span></p><ul><li style="list-style-type: none;"><ul><li><span style="font-size: 12pt;">Better IT infrastructure.</span></li><li><span style="font-size: 12pt;">Having a STEM (Science, Technology, Engineering and Maths) Program. </span></li><li><span style="font-size: 12pt;">Having an AI (Artificial Intelligence) Lab. </span></li><li><span style="font-size: 12pt;">Having an AR (Augmented Reality) Lab.</span></li><li><span style="font-size: 12pt;">Having a VR (Virtual Reality) Lab.</span></li><li><span style="font-size: 12pt;">Having a Design Thinking Lab.</span></li><li><span style="font-size: 12pt;">Having a Coding Lab.</span></li><li><span style="font-size: 12pt;">Having high bandwidth for a seamless network.</span></li><li><span style="font-size: 12pt;">Having a telescope viewing place.</span></li><li><span style="font-size: 12pt;">Having one laptop per child, from Grade 3 onwards.</span></li><li><span style="font-size: 12pt;">Having high calibre IT faculty.</span></li><li><span style="font-size: 12pt;">Having an ERP (Enterprise Resource Planning) System.</span></li><li><span style="font-size: 12pt;">Having an LMS (Learning Management System). </span></li><li><span style="font-size: 12pt;">Having an MIS (Management Information System). </span></li><li><span style="font-size: 12pt;">Having Managebac - a School Learning Platform.</span></li></ul></li></ul><p>&nbsp;</p><h2><span style="font-size: 12pt;">4. What are the characteristics of an Entrepreneurial School ?</span></h2><ul><li style="list-style-type: none;"><ul><li><span style="font-size: 12pt;">An Entrepreneurship school must fill the gap between the learning being imparted in schools and the needs of the Industry.</span></li><li><span style="font-size: 12pt;">It must have Centres for Creativity, Innovation, Research and Artificial Intelligence. </span></li><li><span style="font-size: 12pt;">It must teach the students the Industry jargon.</span></li><li><span style="font-size: 12pt;">It must inculcate a spirit of Entrepreneurship in the students.</span></li><li><span style="font-size: 12pt;">It must be a digitally networked Smart School. </span></li><li><span style="font-size: 12pt;">It must have MOU's and tie-up's with the Industry and business organizations. </span></li><li><span style="font-size: 12pt;">It must have Mentor support.</span></li><li><span style="font-size: 12pt;">It must have well equipped Labs for a Research oriented environment.</span></li><li><span style="font-size: 12pt;">It must have Tinkering Labs.</span></li><li><span style="font-size: 12pt;">The students must participate in webinars by academic and industry experts.</span></li></ul></li></ul><p>&nbsp;</p>
KR Expert - Dr Colonel Atul Bhandari