Education Market Making A Comeback
Q1 Actual Sales 13 Points Better Than Forecast
Apr 23, 2021
By Bob Stimolo
First quarter sales results are in and they are encouraging. The overall Q1 forecast was -12%, but the actual was +1%, 13% better than forecast. The Q2 forecast is +17% and the FY2021 forecast is +15%, considerably better than the +4% that was the FY2021 forecast in Q4 2020.
Market Recovery in the Making
The market appears to be making a recovery. Many schools are returning to in-class education and those that are continuing remote or hybrid education have improved the process. One-half of all respondents said that sales performance was the result of 1) the overall economy (52%), 2) remote learning hybrids due to Covid-19 (50%), and 3) the reopening of schools (48%).
Sixty-one percent of all respondents plan no change in their promotion and advertising budgets, 26% are planning to increase their budget by an average of +12%, and 13% of respondents are planning to cut their budget by an average of -37%.
One-third of all respondents anticipate a major improvement in economic conditions before the end of this school year, more than half (53%) anticipate modest improvement, and just 13% foresee no change.
Sales reps are considered the most effective advertising and promotion media by 34% of respondents, email is considered so by 24%, and direct mail by 20%.
Half of All Respondents Expect Sales to Improve by Summertime
Half of all respondents expect sales to improve by the summer of 2021, 39% anticipate major improvement, and just 11% expect no improvement. Half of all respondents feel that the Biden administration will cause educational sales to modestly improve, 22% feel they will greatly improve, and 22% feel there will be no change at all.
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