How is the Experiential Learning Industry Positioned in India?
For a very long the India Education system has been plagued to the traditional classroom learning methodology, unconsciously promoting rote learning among students. Students were just focused on getting good marks in school by memorising concepts to stay ahead of the growing competition. It was only after 2010 when educational institutes and start-ups made efficient use of technology and the concept of experiential learning and “learning by doing” methodology gained traction among parents and students. Ed-Tech start-ups in India are trying to take over the unorganised tuition classes industry by providing a technology driven, convenient and fun educational solution to students. Such kind of products also to address to the pain-points of parents such as increasing futile screen time of kids, lack of time to parents due to changing lifestyle and growing future competition & job security concerns.
There are different kinds of e-learning start-ups providing different type of solution. Initially e-learning consisted of learning videos and virtual live classes. Two important concepts namely activity kit subscription and K12 E-Learning/Experiential Learning solution have gained traction in the last 5-6 years.
Activity kit subscription solution is for 2-14 years old kids. Subscribers usually get 1 box every month that includes theme based multiple hands-on activities, worksheets, guidebook and other complimentary components. On the other hand, e-learning solution majorly focuses on reinforcing academic learning through animated educational videos, stories, educational games, quiz, personalised learning path, progress tracker, live classes and other AI based features on their app.
Currently there are multiple educational solutions in the market, however there exist a gap such as increasing number of drop-outs, unavailability of material in regional language and others that has lead to limited adoption in tier 2 and tier 3 cities. Such gaps can be filled by an integrated product that promotes learning by blend of activity kits, educational videos, live-classes and other AI based features. Parents currently need to subscribe to multiple educational product to engage their kid in the after-school time in a fun and educational manner. There is a need of a one-stop-shop solution that fulfils all the after school requirement of parents.
Overview of India K8 Activity Kit Subscription Industry
The activity kit subscription industry is at its nascent stage and has gained traction during 2015-2016. As of 2020, the industry has penetrated <1% of its TAM with ~ subscribers across the country. The growth is driven by key factors such as increasing awareness about early childhood development increase in Per capita Income Levels & changing lifestyles. The average subscription renewal rate in the industry is ~%. The industry revenue has increased from INR ~ mn in FY’15 to INR ~ mn in FY’2020 with a double digit y-o-y growth rate. Majority of revenue is coming from 3 month subscribers who have to pay INR 1,500-4,000 as subscription fee. The major challenge in the industry is lack of awareness; companies have to spend a lot of their time to explain the benefit of the product and its value for money which leads to high customer acquisition cost and high lead conversion time. Majority of conversions also takes place on the sales calls and there are very few subscribers who directly subscribe through the website. The industry also faces the challenge of demand seasonality, majority of parents so not wish to subscribe before and during examination month and majority of demand can be expected during vacations in the month of March to June.
How is the Activity Kit Market Segmented?
By Age Group: Majority of demand comes from 6-10 years old kids as they are capable of doing the activities alone without parents help and relatively have less academic pressure & have ample of free time. Demand from +10years old is growing at the fastest pace after introduction of interesting and attractive activities by companies such as Flintobox, Magic Crate and Mel Science.
By Region: Tier 1 contributes majority share to the overall revenue followed by tier 2 and tier 3. Better awareness and increasing number of both working parent has lead to growing demand in tier 1 cities such as Chennai, Bangalore, Mumbai, Delhi, Kolkata, Hyderabad and Pune. Companies should focus on social media marketing to reach to different geographies. B2B partnerships with schools can also help companies to reach parents in tier 2 and tier 3 cities.
By Subscription Period: Majority of parents subscribe to 3 months subscription followed by 6 months and 12 months, however 6 months subscribers contribute the majority of the revenue. 3 Months is mostly preferred as a trial subscription, to understand the kid’s interest and because of demand seasonality. Majority of parents subscribing to activity kits are corporate employees and they prefer 6 months over 12 months to avoid a massive onetime payment.
Competitive Landscape in K8 Activity Kit Industry
The competition in the industry is concentrated with top two players contributing +90% of the revenue in FY’20. Flintobox and Magic Crate have created their brand value by first mover advantage. IntelliKit and Xplorabox are primarily focusing on activity kits for <6 years old kid. All the companies are competing on the basis of subscription price, product quality (use of child friendly material), comprehensiveness of the product, geographical presence, number of activities in a single box, and after sale services. A strong marketing, sales and product development team are key to success in the industry.
Key Segments Covered:-
K8 Activity Kit Industry Revenue By Age Group
K8 Activity Kit Industry Revenue By Subscription Type
Others (1 Month, 2 Month & 9 Month)
K8 Activity Kit Industry Revenue By Regions
Tier 1 Cities
Tier 2 Cities
Tier 3 Cities
K12 E-Learning Industry Revenue By Grade
UKG and LKG
Key Target Audience:-
Activity Kit Companies
Time Period Captured in the Report:-
Historical Period: FY’2015-FY’2020
Forecast Period: FY’2020-FY’2025
Indian K8 Activity Kit Subscription Competitive Ecosystem
Flinto (Flintobox and Flintoclass)
Indian K12 E-Learning Competitive Ecosystem
For More Information on the research report, refer to below link:-
Ankur Gupta, Head Marketing & Communications