How Is The Experiential Learning Industry Positioned In UAE?
There has been a drastic evolution in the UAE Education Industry in the last 20 years. The education infrastructure is rustic to technologically-advanced classrooms fitted with smart boards. More than 90% of students are enrolled in private schools because of the high average household income. Private schools specifically have evolved to comply with the requirements of a highly-competitive job market. Schools have maintained high-quality teaching standards, according to the Global Competitiveness Index, primary school education in UAE ranked 16th globally in 2019. Even after school incorporating edutainment methodologies and quality education parent still faces a need for an additional experiential learning solution that can unable child’s overall development in fun and engaging manner. The majority of parents in the UAE believe that their child lacks basic life skills such as Social Skills, Flexibility, Leadership, Productivity, others, and Critical Thinking skills such as Problem Solving, Decision Making, Observational Skills, Analytical Skills, others. More than 50% of the parents in Dubai are dual working parents and therefore they have very little time for their kids and their education. Traditionally kids in UAE spend the majority of their time with housemaids, who usually cannot help them with their studies. Increasing internet penetration has also led to increasing in futile screen time for kids, which in turn has many side effects on kid’s attitude and mental health. Child’s Job Security is one of the major concerns for parents who want to prepare their child for the competition in the future. Kids and their parents face increasing pressure of standing out in society. All these pain points of parents and kids have led to the introduction of the experiential learning industry that promotes skill development by “learning by doing” methodology and discourages the use of rote learning methodology.
Two of the famous experiential learning solution that exists in UAE are Activity kit subscription and E-Learning platforms. Activity kit subscription solution is for 0-14 year’s old kids. Subscribers usually get 1 box every month or every 2 months that includes theme-based multiple hands-on activities, worksheets, guidebooks,s, 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, personalized learning path, progress tracker, live classes and other AI-based features on their app.
There are multiple educational solutions in the market; however, there exists a gap such as increasing number of drop-outs, lack of efficient marketing and sales strategy, presence of ill-researched products, and lack of an integrated solution. Such gaps can be filled by a comprehensive integrated product that promotes learning by a blend of activity kits, educational videos, live classes, and other AI-based features. There is a need of a one-stop-shop
Overview Of Uae Activity Kit Subscription Industry
The industry is at its nascent stage with a total addressable market of ~ thousand kids and <0.5% of penetration with ~ subscribers in 2020. The growth is driven by key factors such as increasing awareness about early childhood development increase, growing the number of dual working parents, increasing household income, and changing lifestyle. The industry revenue has increased from AED ~ thousand in 2017 to AED ~ thousand in 2020 with a double-digit y-o-y growth rate. Majority of revenue is coming from 1, 2, and 3-month subscribers. On average, subscribers pay AED ~ for activity boxes. Gift cards, festive & birthday boxes are a few of the other products provided by activity kit companies. Swap/rental subscription, use of branded toys, and marketing through CSR are some of the key trends in the industry. The industry also faces the challenge of demand seasonality, the majority of parents do not wish to subscribe before and during examination month and majority of demand can be expected during vacations in the month of October to December.
How Is The Activity Kit Market Segmented?
By Age Group: Majority of demand comes from 0-6 years old kids as have low academic pressure and therefore have more time to use activity kits than 7-14 years old kids. The existing activity boxes are art and craft-based and therefore get lesser traction from 7-14 years old in comparison to 0-6 years old. To penetrate into 7-14 years old category, companies should design curriculum aligned activity boxes and should partner with schools.
By Emirate: Dubai and Abu Dhabi are the major segments due to high awareness and an increasing number of dual working parents. The majority of the school-partners of the companies are based in Dubai. For instance, School-Partners of My Discovery Lab such as Horizon English School, SAFA, DESS, North London Collegiate, Dubai British School, Jumeria, Odyssey Nursery, and Star International School is based in Dubai.
By Subscription Period: The 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. The majority of parents subscribing to activity kits are corporate employees and they prefer 6 months over 12 months to avoid a massive onetime payment.
Key Segments Covered: –
K8 Activity Kit Industry Revenue By Age Group
0-3 years
4-6 years
7-9 years
10-14 years
K8 Activity Kit Industry Revenue By Subscription Type
1 Month
2 Month
3 Months
6 Months
12 Months
Others (4 Month, 8 Month & 9 Month)
K8 Activity Kit Industry Revenue By Emirate
Dubai
Abu Dhabi
Sharjah
Others (Ajman, Umm Al Quwain, Ras Al Khaimah and Al Fujairah)
K12 E-Learning Industry Revenue By Grade
UKG- Grade 3
Grade 4-5
Grade 6-8
Grade 9-12
Key Target Audience
E-Learning Companies
Activity Kit Companies
Toy Companies
Schools
Pre-Schools
Government Authority
Time Period Captured in the Report:
Historical Period: 2017-2020
Forecast Period: 2020-2025
Companies Mentioned:
UAE Activity Kit Subscription Competitive Ecosystem
Monki Box
Baby Box Swop
My Discovery Lab
The Happy Box
Kids Fun Box
Peekado
UAE K12 E-Learning Competitive Ecosystem
BYJU’s
Toppr
Vedantu
Knowledge Planet
Meccademia
Key Topics Covered in the Report: –
Target Addressable Audience, Serviceable Addressable Market and Share of Market for Experiential Learning
Snapshot of Dubai Education Industry
Snapshot of Abu Dhabi Education Industry
Existing Gaps in Experiential Learning Industry
Supply Ecosystem
Business Model Analysis in Activity Kit Industry
Revenue Streams in Activity Kit Industry
Organizational Structure of Activity Kit Company
Case Studies of Offline Players Providing Experiential Learning in UAE such as Sylvan Learning Dubai and Metamindz
Porter Five Force Analysis for Activity Kit Industry and E-Learning Industry
BCG Matrix for Activity Kit Industry
Impact of COVID
Demand Side Survey Analysis
Analyst Recommendation
GTM Strategy for a New Entrant (Market Potential, Target Audience Bracketing, Product Positioning, Product Pricing Strategy, Marketing and Customer Acquisition Strategy and Potential Risks)
For More Information on the research report, refer to below link: –
Future of UAE Experiential Learning Market
Related Reports by Ken Research: –
Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
