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17 Dec 2013

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Educational Services Boom: Language/Tutoring Franchises to Flourish (Current Issue No. 2440 Full Ed.)

Amid a growing value in self-improvement as well as parents' ambitious intentions to see their children skilled in many fields, business opportunities have increased for educational services focusing on extracurricular tutoring. KResearch estimates that the market value for these business will total THB16.70 billion in 2013, growing 15.43 percent YoY to THB19.27 billion in 2014. THB16.44 billion will likely go to non-franchise tutoring schools in 2014, representing a 14.68 percent expansion, while THB2.83 billion will likely be earned by franchised institutions, rising 20.00 percent YoY.
The number of school franchisors has not increased significantly, but franchisees have been growing quickly. This is evident in the mushrooming growth of tutoring schools in upcountry provinces nationwide. The higher franchise and royalty fees (paid in proportion to operating performance) now being collected by franchisors are the main impetus to rapid expansion in tutoring schools and extracurricular educational institutions.

Because parents and students pay more attention to trustworthy institutions, investors in educational services mostly choose quality, well-known franchisors. KResearch believes that the opportunities in tutoring and language school franchise businesses will continue to thrive despite economic uncertainties expected in 2014. This uptrend will continue because demand is high among students who need further preparation for university entrance exams. The imminent launch of the AEC is also triggering this increased interest. School franchisors have thus adjusted their marketing strategies by improving the teaching quality and curricula, while also adopting newer teaching methods, as well as devising attractive promotional tools, in order to do well within a climate of stiffer competition and to meet students' changing behaviors and needs.

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