The Education Market in China, a Lucrative Business

Every year 9 million Chinese students have to pass a very stressful exam that will determine which university they can attend. This exam in the same way will also influence their job and social position in the future. Considering the fact that before the new law, the Chinese family was allowed to have only one child, all the family’s hope relied on this child. The Chinese government maintains high pressure on this high school exam. The Chinese traditional education system does not favor the development of personality, values, and social responsibilities. In general, it is very difficult to change the mindset settled by the system which is characterized by an exam-oriented education.

Reasons to move from public to private school

The young generation (born in the ’80s-’90s) of parents in China have different expectations and wishes for their children. Because the competition between kids is very fierce they want the best for their children. They want to give them the best condition to succeed. Consequently, they are willing to spend a lot of money to pay tuition fees. We should also highlight the impact of the implementation of the second-child policy. Therefore, the number of children in the education age will increase.

These parents want a different education for their children, meaning not Chinese traditional education. They want a more open-minded and western education for their children. They believe that it is better for the development of the creativity of children, and they are ready to pay. The private education market has now a value of approximately 315 million $.

Private schools are emerging all over China

In China, we can find a variety of classroom options that are available If the parents can pay. You can find private classes once a week for full-time boarding school education. You have all the different levels of classes. Some schools offer classes from three years old kindergartners to 18-year-old classes. Besides basic education, they also propose after-school activities such as tutoring in English, art, or music.

 In response to this shift of mentalities, private schools are emerging all across the country and not just in urban hubs to fill a deep gap between the middle class. You can find the atelier of everything. It goes from oil painting to sculpture. The majority of pupils are 15 years old. Classes are taught in French or English by foreign teachers. Therefore, some older teenagers do applications to study in famous creative art institutes such as Central St Martins in London or the Beaux-arts in Paris.

Read our China Education Market Guide

Private schools as opportunities for investors

Moreover, Chinese private schools offer the opportunity to pass British A-level exams and international baccalaureate. This fact is a consequence of the opening of China in the world. Indeed, the parents are traveling more and more and they want that their children have an international profile. If they are graduated with an international degree, then they will be able to apply to foreign universities.  The wish that their children have an international profile can be profitable for you because they make their children take English lessons more and more early. So, English-speaking schools are very popular in China.

What is interesting in this business is the fact that prices are very high. AS we already said, middle-class parents earn more than their own parents. Consequently, they can sacrifice a significant part of their salary to pay tuition fees. A study of a media group called Hurun published an annual report which shows that the Chinese are prepared to invest 20-25 % of their annual spending in their children’s education.

Development of online education in china

During these last years, we can see an impressive extension of the online education industry. Indeed, this industry knew an increase of 20% these years. In 2017, the market has a value of 150 billion RMB. Since then it has an annual growth of 23%. The user scale swelled to 89.37 million during the same period. First of all, the government strongly encourages the development of the education industry.

Therefore, it has a significant budget for that. They also reinforced and accelerated the process of laws revision in order to first facilitate the entrance to this market and second, in order to attract investors. In 2017, it was possible to count more than 140 domestic online education investment programs which gather 14.886 billion. The main part of students are privately funded and especially for online education.

 How can we help you to enter the Chinese Education business?

Pay attention to location and define your target

We can help you to decide first what kind of school you want to open meaning the level but also the form ( online or real school). It is important to choose a good location because it is directly linked with your target even if in this field it is quite easy because children and parents are every. In addition no matter their economic condition they want the best for their kind.

You are probably aware that competition in education is very hard between schools. Therefore, building a differentiating strategy is essential if you want to be visible. You need to optimize your visibility through a good promotion on social media and also with a PR strategy. Especially in education, what people tell about your school is very important because it can have a positive or negative impact on your reputation online but also offline.

Build an effective Baidu SEO strategy

Your website reflects your school. So it has to be qualitative and attractive. The website will help you to strengthen your credibility. It has to be easy to find useful information, such as the different types of classes and the schedule. Even if it is a language school, you need to have a Chinese page in order to have a good position in Baidu. Indeed, we also can help you to improve the content with a productive SEO.

SEM (Search Engine Marketing) advertising online are effective at the beginning

If you need traffic at the beginning, we advise our clients to invest in online ads to get traffic at the launch of their activity. The most important thing in China is probably the reputation of your business… Chinese are able to pay a lot to get quality services, especially when it matters to the Education of their Kids. Most English teachers know that PR can bring trust to a new institution, new school new e-learning business. Get positive reviews on forums, or via influencers … It is a good way to win the trust of your future clients.

Learn more about recruting chinese students here

Take advantage of expertise in the Chinese education Market

With our wealth of experience in education, we provide performance campaigns, results… and help the business to grow in China. China is not an easy market and education is a super competitive industry. To really make money in China, you need to be the best in your segment, and we can help you with that.

1. Ask our Case studies
2. Ask to Speak to our Consultant
3. And come to meet us in our office if you have a serious project

For more information or to schedule a phone call with our education expert in china, drop us a request here