Education and training industry 2017- now focus in China scrutinized in new research

The overwhelm majority of companies sees their annual revenue of less than RMB1 billion.

China Education and Training Industry Report, 2014-2017 provides information on pricing, market analysis, shares, forecast, and company profiles for key industry participants. 

In 2013-2014, China education and training industry is characterized as follows:

1, There are many education and training institutions but few large ones.
As of the end of 2013, China had boasted a total of 112,300 education & training institutions but few of them could achieve annual revenue of more than RMB1 billion. The companies with higher proceeds consist of New Oriental Education & Technology Group, Inc., Xueda Education, TAL Education Group,., and the three’s revenue in 2013 was respectively up to USD1.055 billion (RMB6.437 billion), USD347 million (RMB2.116 billion), and USD287 million (RMB1.764 billion).

2, Competition pricks up, and the training institutions with weak comprehensive strength are merged or exited the market.
During 2003-2013, the number of education & training institutions in China fell from 230,600 to 112,300, a sharp drop of 51.3%. It is worth noticing that large training organizations with better quality of training activities and more competitive strength established well-known brands and got highly recognized among consumers and in the market, thus ceaselessly expanding the learning centers, take example for Xueda education whose learning centers rose from 32 in 2007 to 462 in the first half of 2014.

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3, Policy environment for private education gets better and further open.
Chinese Government encourages and guides private capital into the education sector and continuously consummates relevant financial and tax policies. For instance, in March, 2013, the Decision of the State Council on Accelerating the Development of Modern Vocational Education was issued, which pointed it out that “to release the opinions on encouraging and supporting the development of private education, to implement the policies and measures about the development of private education, and to attract social capital into education sector”.

The draft of Several Opinions on Further Encouraging Social Forces to Run Education has been finalized for the moment, which covers many domains of private education such as classified management, school-running admission, school-running financing channel, financial investment mechanism,.

4, Vocational education rises as a national strategy.
In June, 2014, the State issued the Decision of the State Council on Accelerating the Development of Modern Vocational Education and the Modern Vocational Education System Construction Planning (2014-2020). Before 2020, the proportion of medium and large enterprises participating in running vocational education schools should be above 80%.

Bolstered by policies, the education & training institutions and enterprises have successively set foot in vocational education. By the end of September, 2014, 26 listed companies in the A-share market have been involved in vocational education.

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5, Traditional education and training institutions make more investment in online business.
In 2013-2014, online education attracted the massive inrush of capital, and internet firms, venture companies, startups and otherwise all have made arrangements in online education. Also, traditional offline education & training institutions (New Oriental Education & Technology Group, Inc., TAL Education Group, Xueda Education, Juren Education, Longwen Education, Huatu Education,.) made more efforts in online business and mainly built O2O model by dint of their offline business.

For example, New Oriental Education & Technology Group, Inc. has established a blended learning platform by depending on XDF.cn, an intelligent recorded online learning platform by relying on koolearn.com, and an open live online education platform by dint of Koo.cn.

Besides, Weixue Mingri, which is co-funded by New Oriental Education & Technology Group and Tencent is exploring mobile learning field.

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