Though it is widely known that education is an important part of the Chinese society, such a success for the online education market wasn’t expected. Even if China usually tends to prefer traditional institutions, many things changed since their economic boom. They modernized many things, education included. So online education started to get really popular in 2008 and had since more than tripled its shares. Even some big companies (such as Baidu) and famous offline education institutions took advantage of this emerging and prospective market, whether they are Chinese or foreign. This trend can be useful for the whole population. More and more businesses even provide it to their employees in order to upgrade their skills.
Chinese Parents are ready to Invest in their Kids Education
But as Chinese parents’ are rather pushy and have high expectation toward their children’s academic achievement, online education became the newest trend for “Tiger parents”. Children education unsurprisingly became the most active section in China’s online education market, counting nearly 200 million users every month. Very fond of foreign teachers, education is therefore an interesting sector in China, which can be very lucrative by knowing how to use the right tools in the Chinese market. source Why education is important for Chinese Parents
The online education industry in China is growthing
The online education industry in China had known a huge growth in the past few years, but it is not ready to stop yet. Analysts predicted many opportunities to come as investments in the sector are so big. China definitely has the potential to become the liveliest market for online education. Several factors are encouraging this tendency, such as the rising of Chinese spending power, the two-child policy and the undersupply of education resources. Those encouraging facts make specialists expect a growth of 20% per year and the reaching of 270 billion yuan of revenue in 2019. Nowadays, the most active mobile app for online education is Zuoyebang, which helps secondary school students with their homework. But a new trend in online education is now booming: STEM (Science, Technology, Engineering and Maths). By 2020, around 50 million parents should give their children this online formation to make them learn about coding and robotics since young age, though it costs 200yuan (US $30) per session.
So why Chinese parents are they all crazy about it?
Of course, education is an important factor in every culture. But in Chinese society, it also has a cultural meaning. As they measures success accordingly to achievements rather than on more biased points, pressure is really high. Competition starts since the youngest age and getting good grades is not only a way to make sure to have a bright future, but it’s especially a requirement to prove to others that you are not a failure. The concept of “DiuLian”(losing face) is one of the biggest concept in Chinese culture. If a kid has bad grades, he will lose his face, but also humiliates his parents, that will be seen as “not good enough”. It’s not unusual for parents to spend more than a third of their revenue in their children’s education. The social pressure is really high and competition is fierce for children as well as for parents.
Moreover, because by 2030, almost 200 million graduates are expected to enter the job market, Chinese students need to stack all the odds in their favor as soon as possible. They have to be already ready for the future and jobs that might not exist yet. The new generation of parents is also more aware of the technological advances and the emergence of the middle class as well as the general modernization and digitalization of China can easily explain the success of online education. The government also invested more and more money in this market, but also supported and created new laws and policies about private education, which all helps this field being really prosperous. Another reason would be their interest for classes that are not taught in China, or by Chinese. But they also like to be able to study when they wish to, as they usually have a really busy schedule.
So this is a very promising and vibrant market in China that will only grow bigger in the years to come. Opportunities will be numerous and allow to target millions of Chinese! Whether they are university students, businessmen, child or just people wanting to improve their skills. Especially in fields like science, technology and English language. They are the most profitable markets as those skills will be required to the students when they will search for a job. As a foreign online education company, the market isn’t too hard to enter.
But the major key to success is rather hard to get: credibility.
Chinese need trust in a brand, especially when they spend a good amount of money for it. Also education is such a serious issue for them, it can be seen as a real investment, so having a proper image is truly needed to have customers. Famous High End School get the trust , but no Chinese parents want to invest in a new School …
The market entry strategy should be really polished.
There are many competitors so a deep study of the market is needed. Alliances and partnerships with local companies can be a great way to enter the market quickly and to benefit from their image so customer will trust you more easily. But this is not enough to be successful, you should market and advertise your company by using the Chinese digital marketing. As the network is really different, it is advised to call on a specialized agency for help, to make sure to have an efficient entry.
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