2018/05/09(Sender: FC Owners Operations Office)
If you're going to open a franchise in the education and childcare industry, your customers will be, quite simply, "children." There's no point in creating an environment to look after or educate children in a place where there are no children.
In Japan, where the birthrate is currently declining, is it reckless to open a franchise in the education and childcare industry?
This time, let's examine the current state of education expenses for children from a statistical perspective and look at its future prospects.
According to the total fertility rate announced by the Ministry of Health, Labour and Welfare, it was 1.44% in 2016.
Note that this total fertility rate focuses on the birth situation over one year and is the sum of the birth rates of women of each age (15-49 years old) in that year.
Compared to 1.26% in 2005, which was the lowest total fertility rate since statistics began, it appears to have increased at first glance.
However, when comparing the number of births according to the vital statistics announced by the Ministry of Health, Labour and Welfare, it has fallen below 1,000,000 for two consecutive years.
2005: 1,062,530 people
2016: 976,979 people
2017: 941,000 people
And, according to the Ministry of Internal Affairs and Communications' estimate of the population of children under 15 years old, released in April 2017, it was 15,710,000. This is 170,000 fewer than the previous year's 15,880,000, and marks the 36th consecutive year of decline since 1982.
These are thought to be linked to the following trends.
In other words, it is an undeniable fact that the number of children who are customers of the education and childcare industry is simply on the decline.
So, is there no future for the education and childcare industry?
Focusing on elementary school students, the number of students has decreased significantly from 937,000 to 639,000 (a 31.9% decrease) between 1990 and 2016 due to the declining birthrate.
However, did you know that the enrollment rate in private elementary schools has increased from 640,000 to 770,000 (a 21.0% increase)? Furthermore, spending on extracurricular education per child (such as tutoring and extracurricular activities) is on the rise year after year.
Furthermore, looking at the work styles of parents, since 1996, when the number of dual-income households surpassed that of households with full-time mothers, the number of dual-income households has been increasing. Moreover, nuclear families are becoming more common, and in 2013, a total of 60.1% were single-generation households.
Without grandparents living with them who can be easily entrusted with childcare, the environment for raising children is not ideal. Currently, Japan is in a situation where it must rely on the education and childcare industries.
Although the number of children is on a downward trend, there is no need to be pessimistic about opening a franchise in the education and childcare industry; rather, expectations for the education and childcare industry are on the rise.
So, what should you pay attention to in order to operate an education and childcare business that will be chosen by more children and parents? The answer lies in empathizing with the feelings of busy dual-income couples.
For example, if services such as "flexible response to sudden overtime work," "sick child care available," "parking space secured for parents dropping off and picking up," and "home pick-up and drop-off" are available, then the "value < cost" would likely be justified and the service would be well-received.
Furthermore, for families who are willing to spend on education, a service that allows children to learn multiple subjects on the same day, such as English, musical instruments, or shogi (Japanese chess), would be appreciated as it would significantly reduce the burden of transportation for extracurricular activities.
While it is true that the number of children is decreasing, considering the cost of children's education, there is still considerable potential for success in the education and childcare industry, depending on management skills.
When aiming to open a franchise in the education and childcare industry, various considerations such as location and safety must, of course, be examined. However, you must not overlook "customer service" not only for children and parents, but also for educators and childcare providers. In order to protect the business from harassment (actions and words that may be perceived as such), such as power harassment and sexual harassment, "customer service training" is a point that should be incorporated after hiring.
Differentiating from the perspective of the education and childcare industry that aligns with the needs of society will likely be required for franchise operations going forward.
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村田 淑子
Financial planner
While working in insurance operations at a foreign-owned insurance company, she also conducts numerous seminars as a seminar instructor, including money planning seminars and inheritance seminars. She is also a member of the Million Dollar Round Table (MDRT), an international and independent organization of outstanding life insurance and financial services professionals established in 1927. In her private life, in addition to her full-time career, she served as a kindergarten officer, PTA officer, and children's club officer for 14 years. She also holds qualifications such as a World Heritage Site certification, a vocabulary certification, and a manners protocol certification.