Page 410 - 2018 White Paper on the Business Environment in China
P. 410
8 White Paper on the Business Environment in China
2.15 Education
Background since China relaxed its family planning policy in October
2015. It took over British high-end nursery product
The private education opportunities in brand Silver Cross in 2015. “In China, there is a lot of
China are many and include traditional recognition on linear learning and development. There
education, studying abroad, trainings and online is a real need for development of EQ, primary motor
education. The size of Chinese education market is skills and social-emotional skills,” Mattel Chief Executive
expected to grow to 2.9 trillion yuan by 2020. Chinese Margo Georgiadis said. The company said it aims to
private education institutions have witnessed a strong enmesh more educational content with other brands
growth momentum and kindergartens account for a such as Fisher-Price and Thomas & Friends, which are
large share of private education institutions. In terms popular in China.”As we think about the opportunity in
of geographical location, over 40 percent of private China ... it is driven by the basic fact that there are 210
K12 and higher education institutions are in eastern million kids in China, while there are 55 million in the
China. Outbound international students from China U.S.,” Georgiadis said,” Just the sheer size of the market ...
have grown from 280,000 in 2010 to 520,000 in 2015. it’s an enormous market opportunity” (Song).
The number of Chinese students studying abroad has
been steadily growing and there is further potential for According to ResearchInChina, a business consultancy
the number to grow. U.S., Australia, U.K. and Canada are based in Beijing, private kindergartens and pre-schools
among the major destinations of Chinese outbound are booming in China. Between 2003 and 2015, facilities
international students (Deloitte). nearly tripled from 55,000 locations to 143,000, while
only 15,000 new public kindergartens opened over the
Pre-school and Kindergartens same period. Private schools outmaneuvering of their
public counterparts stems from an ever-increasing
Mattel Inc, the world’s largest toy maker, is tapping imbalance: Even as families have become wealthier and
into China’s early childhood education market by parents have demanded more of pre-school services,
working together with local investment conglomerate government has offered little support for early-age
Fosun Group. The California-based toy giant announced public education. The proliferation of the private early-
in 2017 that its joint venture with Fosun will aim at age education sector in China also defies other trends
launching a network of play clubs which combine pre- in Chinese education. As these kindergartens have
school educational services and retailing. The joint flourished, private educational centers servicing other
venture is subject to Chinese regulatory approval. The grade levels have struggled to find their footing. In 2016,
first play club is expected to open in early 2018, targeting the central government took a strict line on private
children aged up to 6. It will be located in the newly education for elementary through high school, banning
completed Bund Finance Center in central Shanghai. for-profit education at those levels while leaving pre-
Covering 1,500 square meters, the club will include elementary intact. While Western-style kindergartens
entertainment, classrooms, a day-care area, catering and are still a luxury in China, it is surprising that the
a retail space. Club Med, which Fosun acquired in 2015, Chinese government is allowing them to operate and
will offer its expertise in operating children’s clubs, said slowly spread at all. The government has increasingly
Qian Jiannong, Senior Vice President of Fosun Group. scrutinized every other part of the Chinese education
According to Shenzhen-based market research firm system in the last decade. Universities have suffered
CIConsulting, China’s early childhood education market ideological crackdowns in waves; school textbooks
will grow by 20 percent annually to reach 348 billion are notorious for frequent edits and tight control of
yuan in 2020. Fosun has had its eyes on this market ever historical narratives (Niewenhuis).
410
2.15 Education
Background since China relaxed its family planning policy in October
2015. It took over British high-end nursery product
The private education opportunities in brand Silver Cross in 2015. “In China, there is a lot of
China are many and include traditional recognition on linear learning and development. There
education, studying abroad, trainings and online is a real need for development of EQ, primary motor
education. The size of Chinese education market is skills and social-emotional skills,” Mattel Chief Executive
expected to grow to 2.9 trillion yuan by 2020. Chinese Margo Georgiadis said. The company said it aims to
private education institutions have witnessed a strong enmesh more educational content with other brands
growth momentum and kindergartens account for a such as Fisher-Price and Thomas & Friends, which are
large share of private education institutions. In terms popular in China.”As we think about the opportunity in
of geographical location, over 40 percent of private China ... it is driven by the basic fact that there are 210
K12 and higher education institutions are in eastern million kids in China, while there are 55 million in the
China. Outbound international students from China U.S.,” Georgiadis said,” Just the sheer size of the market ...
have grown from 280,000 in 2010 to 520,000 in 2015. it’s an enormous market opportunity” (Song).
The number of Chinese students studying abroad has
been steadily growing and there is further potential for According to ResearchInChina, a business consultancy
the number to grow. U.S., Australia, U.K. and Canada are based in Beijing, private kindergartens and pre-schools
among the major destinations of Chinese outbound are booming in China. Between 2003 and 2015, facilities
international students (Deloitte). nearly tripled from 55,000 locations to 143,000, while
only 15,000 new public kindergartens opened over the
Pre-school and Kindergartens same period. Private schools outmaneuvering of their
public counterparts stems from an ever-increasing
Mattel Inc, the world’s largest toy maker, is tapping imbalance: Even as families have become wealthier and
into China’s early childhood education market by parents have demanded more of pre-school services,
working together with local investment conglomerate government has offered little support for early-age
Fosun Group. The California-based toy giant announced public education. The proliferation of the private early-
in 2017 that its joint venture with Fosun will aim at age education sector in China also defies other trends
launching a network of play clubs which combine pre- in Chinese education. As these kindergartens have
school educational services and retailing. The joint flourished, private educational centers servicing other
venture is subject to Chinese regulatory approval. The grade levels have struggled to find their footing. In 2016,
first play club is expected to open in early 2018, targeting the central government took a strict line on private
children aged up to 6. It will be located in the newly education for elementary through high school, banning
completed Bund Finance Center in central Shanghai. for-profit education at those levels while leaving pre-
Covering 1,500 square meters, the club will include elementary intact. While Western-style kindergartens
entertainment, classrooms, a day-care area, catering and are still a luxury in China, it is surprising that the
a retail space. Club Med, which Fosun acquired in 2015, Chinese government is allowing them to operate and
will offer its expertise in operating children’s clubs, said slowly spread at all. The government has increasingly
Qian Jiannong, Senior Vice President of Fosun Group. scrutinized every other part of the Chinese education
According to Shenzhen-based market research firm system in the last decade. Universities have suffered
CIConsulting, China’s early childhood education market ideological crackdowns in waves; school textbooks
will grow by 20 percent annually to reach 348 billion are notorious for frequent edits and tight control of
yuan in 2020. Fosun has had its eyes on this market ever historical narratives (Niewenhuis).
410
