China: Education & Instruction Industry Overview of Emerging Tier II Markets 2008/2009 Update

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The objective of this report is to give an overview of the Chinese market for education and instruction, specifically language, IT, soft capabilities instruction, and children’s education. The concentrate is on important emerging markets beyond currently established cities such as Shanghai, Beijing, and Guangzhou. All data and figures in this report are existing through the end of 2007 2008 figures will be released in quarter 3 of 2009.

EXECUTIVE SUMMARY

Industry overview. China has one of the biggest education systems in the world in terms of quantity of students, with a lot more than 163 million students enrolled in primary and secondary schools at the finish of 2007. In the education market place, there are over one hundred,000 registered instruction firms nevertheless there are thousands far more education companies that are not legally registered. In common, the market place is extremely fragmented and high quality of firms and programs varies considerably.

Influence of the economic crisis. China is experiencing an enhance in unemployment levels, as a result of the globe financial crisis. In order to turn into more competitive in the labor industry, much more men and women, like recent university graduates, are pursuing additional study, making significant opportunities in some education fields. Even so, customers are becoming a lot more specific in selecting their where they obtain their education, limiting the opportunities for quite tiny or significantly less identified institutions. Children’s education, language, IT, and soft capabilities coaching are the biggest segments of the coaching sector.

Crucial segments. Children’s education, language, IT, and soft abilities instruction are the largest segments of the coaching business. While the English language marketplace is characterized by fierce competition, the IT training market place is now mostly dominated by a handful of big foreign-invested players. In the children’s education segment, the quantity of education institutes has enhanced rapidly over the final couple of years and competitors is powerful in Tier I and crucial Tier two cities. The soft capabilities training industry on the other hand, is characterized by thousands of quite small organizations (often with only 1 or 2 individuals), only quite couple of of which are nicely-identified all through China.

Drivers of growth. The lack of skilled professionals and management talents in China is a key driver of development as companies frequently use training to increase capabilities of workers as well as a retention tool folks also sign up for coaching programs to boost their own career advancement possibilities. These elements all drive demand for language, IT, and soft abilities education. The children’s education sector is driven by an increasing quantity of wealthy parents eager to invest on extra education and instruction courses for their kids. In the education sector, the quantity of school places presented in the public education system can’t meet demand, resulting in fast growth of the private

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