Although education does not normally fall into the luxury goods category, the Hurun Luxury Consumer Price Index 2017 reveals that in a market like China, characterized by the rapid expansion of an ambitious middle class, this sector saw the sharpest increase in prices, second only to that of the real estate market. Expenses for masters and specialization courses have increased for the tenth consecutive year. The EMBA program (Executive Master of Business Administration) of Hu Pan University in Hangzhou, founded in 2015 by Jack Ma, the founder of Alibaba and one of the richest men in the country, is the most successful. The annual fee is equal to over 490 thousand euros, an increase of 28.6% compared to last year.
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More Investments in Chinese Private Education Sector
Despite many of the best and most funded universities in the country, in Beijing, Shanghai and the large cities of coastal provinces, are public, China has seen exponential growth in the number of private institutions since 1980 when the legislation that regulates the sector has made less stringent. Beijing has started to consider private institutions an escape valve to deal with large increases in demand in the “Law on the promotion of privately run schools” in 2002 explicitly states that “private educational institutions are an integral part of the country’s reinvigoration through the science, technology, and education.
“The Chinese government has long recognized the incentive for foreign investment in good schools for foreigners, so the Ministry of Education has allowed this type of institution to be completely under foreign control. imposing more than one review of the curriculum, but these schools cannot be religious in nature, Chinese students are not allowed to attend them and they have to deal only with primary, secondary and primary schools.
More tutoring and online courses
The state school system remains oriented almost exclusively to passing the final exam (Gaokao) which determines which university the young Chinese can attend and, ultimately, their work and the future social status. This is why students are subjected to very high pressure. As long as the Chinese school system will continue to rely on learning almost exclusively on passing the final exams, there will be room for the rapid development of the extracurricular tutoring market as the new middle class is willing to invest 20-25% of annual expenditure in the education of their children. An additional area was full of potential for growth in online learning, whose strengths – the absence of spatial restrictions, the standardization and the reuse of content – make it an area to be constantly monitored. In 2014, the decision by the State Council to decentralize approval for online training schools has sparked competition in the distance learning market in which even universities now want to enter.
More book sales
According to data from China OpenBook, the leading Chinese company in the monitoring of the publishing sector, the market, in fact, recorded a + 14.6% compared to 2017. The children and youth sector continue to be the main driving force of growth, representing over a third total. And the reasons for this success are different, just think that the audience that the sector addresses is made up of 370 million children and young people under the age of 18. A basin destined to increase, according to estimates, at least three million children a year over the next five years, thanks to the end of the one-child era. Since 1979, the year of its introduction, the one-child policy has certainly contrasted the population growth of the country but as a result, has led to an aging population.
But where do books in China more frequently buy? It was easy to expect, more and more in online stores, which recorded a 28.8% increase in sales. Physical libraries, on the other hand, continue to suffer from online competition, albeit with better results than the previous year. In fact, sales increased by 2.3% compared to 2016, the year in which a decrease in the same order of magnitude had been recorded.
Education means opportunity for foreign Companies
The market of China has become the most attractive in recent years. In fact, the parents of the new generations are willing to invest a lot for their children, as they want an excellent education. Start thinking about the increase in English language schools and the request of native English teachers.
Whether you have published, a tutoring course in a variety of subjects, it is important to have a marketing strategy, because even if the population is large, all Chinese need certainty when it comes to investing in a service or product. Here are some steps of a marketing strategy to be undertaken if you want to enter a country like China that invests 4% of GDP in the education market.
E-reputation: the Base of everything
The online market in China is the most fruitful of all, so in addition to the general Brand Awareness, it is important to create a positive image in the world of the web. And here comes E-Reputation, or the Reputation of the brand on the Internet. This parameter involves not only the quality of the product but also the interaction that the company is able to support with its customers, as well as the way to maintain relations with the public.
The set of these relationships and attitudes will help to create a good online SEO reputation in the eyes of the Chinese, useful to allow to associate the concepts of quality and reliability to the products or services.
Whether you are selling an online course or a book, it is very important to do branding on yourself, which is personal branding. Why? Jack Ma, exactly one name can give you an answer. In fact, the creator of Alibaba was able to create a positive image that contributed to the success of Alibaba.
Through the right personal branding activity, you can position yourself in the mind of a specific audience and be relevant, for something very specific, through something that differentiates you.
Before trust and then distributors(for those who want to sell Books)
After you’ve worked on your branding and your online reputation will be positive, you can find a seller or distributor.
In fact, normally in China, nobody trusts new brands, this also applies to distributors. In fact, they do not look favorably on new brands because they obviously try to create partnerships with companies already established and that are popular among Chinese consumers.
Target your online community
It is obviously important to know what your target person is since you can not sell to everyone. After a study of your target, you need to find your community on the web. In fact, it is the place where most Chinese people make purchases.
But where to find the online community? Social media is the keyword in China! Facebook? Twitter? Instagram? The answer is none of these. Let’s talk about Wechat, Weibo and QQ.
WECHATmore than a simple messaging App
The most famous application is WeChat, now essential for everyone and with which WhatsApp certainly cannot compete. Developed by the Chinese company Tencent in 2011
Today in China, especially in metropolitan cities like Beijing, Shanghai, Nanjing, and Shenzhen, WeChat has now become an important part of daily life for both the new generation and their parents and relatives. Not only because everywhere you go is enough to have a smartphone in hand and you can contact your friends or share moments, but above all because you can make purchases immediately.
In short, WeChat is not a simple app to exchange messages but a mix of Facebook, Paypal, Tripadvisor, Instagram, and Whatsapp. According to statistics, the penetration rate of the market reaches 93%. Data updated to the first half of the year 2018 showed that there are 1 billion active users in the world.
WEIBO full of possibilities
Weibo is a Chinese microblogging site. It is practically a “Twitter” and is one of the most visited sites in China. Just like on Twitter, actors, celebrities, and politicians have accounts verified according to the identification policy, to be really sure that it is them!
But while Twitter ceases to grow by registering 328 Millions of Active Users for the second consecutive quarter, Weibo gains more and more visibility. He thinks that the monthly active users in June 2017 were 361 million, an increase of 28% over the previous year. Weibo has the goal of developing a unique and constantly expanding content ecosystem: it has launched an engaging feature such as Weibo Stories and focuses on attracting opinion leaders, celebrities and influencers to increase its social and viral nature.
In the beginning, Weibo had been a real revolution in China: an online place where political dissidents had begun to express their opinions, exchange views and organize themselves. It almost seemed not to be in China.
The power of KOLs on sales
The Chinese Key Opinion Leader (KOL) is the homolog of our influencer but embraces a wider range of subjects that include bloggers, live streamers, various influencers, but also celebrities. In short, individuals who have a large following on the main social media: Weibo, WeChat or on live-streaming platforms in China, and are able (alone or eterodiretti) to create content to share and naturally adapt to the dominant aesthetic model.
The contents are mostly commercial, the KOL are in fact chosen by Chinese brands and not, to promote their products and in the long run, the most popular become themselves entrepreneurs with their own brand and a virtual shop on T-mall. There is a KOL for every opinion, sector, and subject of knowledge. According to a study carried out in May 2018 by A.T. Kearney, the receptiveness of the Chinese market compared to the celebrity indications is 78% and that of the KOLs of 63%, the highest percentages registered in the world for this kind of marketing segment.
Therefore, creating a partnership with this type of influencers is super recommended if you intend to depopulate in the Chinese market.
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