Tier II and III cities are witnessing a sudden boom of branded pre-schools, making lives easier for parents. The demand for pre-schools in tier II and III cities have increased substantially in the recent years.
Just like the parents in the metros, the small town parents too seek quality education for their children. The Little Crest, a prominent preschool in Mysore grew out of its first location in Tumkur and aims to open more centres in small towns over the next few years.
The pre-school market in the smaller cities is growing at a whopping 120% per annum, much higher than the growth in the cities. Places like Mysore and Mangalore are registering high growth rate in particular. The demand for such schools in smaller towns has particularly increased in the last three-four years.
The initial skeptism of venturing into tier II and III cities has now converted into optimism with increasing disposable income levels, more and more working parents looking to put their kids in the best schools, etc. Parents now believe that a kid needs proper exposure before getting into a formal school.
Shemrock Play School today gets 40% of its business from small cities as compared with a mere 10% four years ago. Apple Kids has its centres in Selam, Madurai, Coimbatore etc.
What attracts these players to set up schools in towns like Mysore, Mangalore and Tumkur are factors like lesser rentals and a more spread out infrastructure as compared to the metros. The overall cost of setting up a pre-school at smaller cities is around 50% less than in metros.