The world's second largest education market, with a population of 400 million students. Do you understand?

How big is the Indian education market?

India currently has a population of nearly 1.3 billion, making it the world's second-most populous country. Additionally, India holds the position as the second-largest education market globally, with 400 million people being students. The country boasts a total of 1.448 million educational institutions, out of which 78.67% are public institutions, and 21.33% are private institutions. In terms of institutional types, 88.89% are primary and secondary schools, 2.9% are higher education institutions, and 8.21% are teacher training and education quality improvement institutions. The education supplies industry has an annual market size of approximately $21.8 billion.

In recent years, the Indian consumer market has witnessed a significant influx of imported stationery and gift items from China, South Korea, and Southeast Asian countries. With the increasing accessibility of imported stationery and gifts, Indian consumers are also raising their expectations for product quality and design. Some foreign companies have established production bases in India, while certain Indian companies have partnered with foreign counterparts to enhance the quality of their products. This trend reflects an evolving consumer demand and a focus on improving product standards and designs in the Indian market.

What products do Indian students like?

Indian consumers are highly price-sensitive and tend to prefer products that are both affordable and suitable. In fact, many consumers in India are willing to sacrifice quality for lower prices. For instance, when it comes to ballpoint pens, the imported Chinese ones in India are not well-known brands but rather more budget-friendly options. Most stationery products in India lack packaging guidelines, and manufacturers often set arbitrary prices. As a result, there is no standardized pricing for stationery products in India, and even on the black market, prices are much lower compared to legitimate retail prices. Therefore, consumers are more likely to accept cheaper imported stationery products. The increased use of computers has also driven demand for office paper stationery.

The government's taxation rates have been affecting the growth of India's domestic stationery industry, making domestically-produced paper stationery products more expensive compared to imports, such as Chinese products.

Paytm has begun focusing on India's rapidly growing education sector to compete with Google Pay and Phone Pay. Paytm's monthly transaction volume is currently 800-900 million transactions, and it expects to generate a total sales volume (GMV) of 2-3 billion USD from the education sector in the next 18 months. So far, Paytm's GMV in the education sector has reached 1 billion USD.

Paytm plans to upgrade and expand its education services, including offering services like co-branded debit cards, tuition fee payment loans, exam platforms, career counseling, and job resources. Last year, Paytm's transaction volume for education fee payments amounted to 1 billion USD. Vineet Kaul, Vice President of Paytm, mentioned that they are building education products that will be sold on the platform. In a year's time, the exam platform will be ready, and users will be able to purchase educational products and take exams on the platform.

The rapid development of the education industry in India has brought forth numerous business opportunities.

One of the main reasons Paytm is shifting towards the Indian education sector is due to the immense untapped potential in the industry. By 2020, the market size of the Indian education industry is estimated to reach around $180 billion, nearly double the $96 billion in 2016.

Relevant data indicates that India has the world's largest population aged 9 to 17, and this generation is expected to invest significant amounts of money in education in the coming years.

In essence, this presents an opportunity for any company.

Participating in events like the 7th China (India) Trade Fair in December 2019 has become an inevitable choice for many companies entering the Indian stationery market. It's reported that among the companies that exhibited in December 2018, numerous orders were secured post-event, greatly inspiring many counterparts in the stationery industry.

Currently, European and American brands in the Indian market are known for their good quality but come with a high price tag. If Chinese stationery products can address the balance between quality and price, and win with cost-effectiveness, there is significant market potential. Emphasizing product innovation is crucial. Retailers point out that novel and fun stationery items tend to stand out at trade shows.

Furthermore, after collecting information at trade shows, stationery companies can leverage the internet to further expand into the international market. Capable Chinese office supply manufacturers and trading companies can directly enter the Indian office supply market and become service providers for corporate clients. This includes supplying various international or private label office supplies and services to large Indian multinational corporations, as well as office hardware and software, printing services, gifts, and office daily necessities.

During the 6th China (India) Trade Fair in 2018, Chinese stationery companies attracted the attention of local buyers.

Ningbo Junye Stationery Co., Ltd. received multiple orders from Indian agents at the 2018 India exhibition. The company's products are well-suited for the Indian market, and a continuous stream of buyers visited their booth.