Page 374 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
to ensure market growth, expand and improve up almost 80 percent of the market. Given that
management without compromising their core adults usually have stronger self-control ability,
competitiveness and quality of education. Hence clearer study targets, limited spare time and fixed
lots of opportunities with challenges will rise for vision, they are the main customer group of online
the industry players, in the future. Early childhood education, and their demand for education is
education has risen due to the implementation of particularly strong in the scenarios of pursuing a
two-child policy which brings sufficient demand higher education background, searching for a job
and the government’s policies to encourage and preparing for a certification exam (Khan).
preschool education; the growth of K12 extra-
curricular training is attributed to the demand Online English-language courses for children
increase resulted from the pick-up of the school- saw an explosive growth in 2018. The market
age population. Meanwhile, the desire for had more than 15 million users in 2018, up 168.3
further education and international education percent year-on-year, and surpassed US$7.3
also drives the demand for K12 examination- billion in 2019. The market size of online English-
oriented education and language education; language education for children was 21.3 billion
personal training grows because of better yuan in 2018, an increase of 104 percent year-
economic capability and higher willingness to on-year, with one-on-one teaching taking up
improve competitiveness. more than half of the market size. The online
users double from 5.7 million in 2017 to 15.3
There are three key, long-term themes in the million in 2018. As Chinese parents increase their
Chinese market that influence consumer behavior: spending on education, online education gets
demand for international education, an increase more recognition and China’s internationalization
in online adoption and affluence driving demand progresses, online course users will keep growing,
for premium products. With almost 1 million people in first- and second-tier cities take up 65
Chinese students choosing foreign institutions, percent of all paid users, becoming a major force
international education is a priority for the in online English course market for children. The
Chinese parents. In 2018 China exceeded the USA number of users in third-and fourth-tier cities is
in terms of education innovation and technology growing. The quality of foreign teachers is a key
investment by approximately three to one. Just factor when parents choose English learning
10 companies have absorbed half of this funding. platform. The foreign teachers of China’s online
Online models are proliferating, and Chinese English education brands mainly come from North
consumers, who bring an “online first” mentality, America, Europe and Southeast Asia. As different
are willing to engage with education products. The brands fight for foreign teachers, the recruitment,
quality and feasibility of Chinese private education high salary and staff mobility will become a
are improving, driven by an increasingly urban, challenge (Jiang).
and cosmopolitan population. Choosy Chinese
education consumers are premium preferring Increasing public access to new educational
and internationally minded. The revenue of tools, integrating artificial intelligence in
China’s online education market reached 251.76 schoolwork and administration, and training
billion yuan in 2018 with a YoY growth of 25.7 teachers and students to become more proficient
percent, which was estimated to keep a growth with the technology are crucial for the success of
rate of 16-24 percent in the following 3-5 years. AI-infused education. The use of AI technologies
The growth rate may decline but will have a steady in education can fundamentally change the
rising momentum. The rising acceptance level for spatial and time requirements, as well as the
online education among users enhanced online supply of educational resources. China is also
service payment willingness and improvement building 100 State-level virtual reality education
in the online learning experience and effects are centers to teach scientific knowledge and skills.
the main reasons for the steady growth of the By the end of 2020, authorities plan to start
online education market. Higher education and building 10 demonstration zones to showcase the
vocational education have long been the main latest innovations and practices of AI-integrated
part of China’s online education market and took education. AI technologies have been used in
374
to ensure market growth, expand and improve up almost 80 percent of the market. Given that
management without compromising their core adults usually have stronger self-control ability,
competitiveness and quality of education. Hence clearer study targets, limited spare time and fixed
lots of opportunities with challenges will rise for vision, they are the main customer group of online
the industry players, in the future. Early childhood education, and their demand for education is
education has risen due to the implementation of particularly strong in the scenarios of pursuing a
two-child policy which brings sufficient demand higher education background, searching for a job
and the government’s policies to encourage and preparing for a certification exam (Khan).
preschool education; the growth of K12 extra-
curricular training is attributed to the demand Online English-language courses for children
increase resulted from the pick-up of the school- saw an explosive growth in 2018. The market
age population. Meanwhile, the desire for had more than 15 million users in 2018, up 168.3
further education and international education percent year-on-year, and surpassed US$7.3
also drives the demand for K12 examination- billion in 2019. The market size of online English-
oriented education and language education; language education for children was 21.3 billion
personal training grows because of better yuan in 2018, an increase of 104 percent year-
economic capability and higher willingness to on-year, with one-on-one teaching taking up
improve competitiveness. more than half of the market size. The online
users double from 5.7 million in 2017 to 15.3
There are three key, long-term themes in the million in 2018. As Chinese parents increase their
Chinese market that influence consumer behavior: spending on education, online education gets
demand for international education, an increase more recognition and China’s internationalization
in online adoption and affluence driving demand progresses, online course users will keep growing,
for premium products. With almost 1 million people in first- and second-tier cities take up 65
Chinese students choosing foreign institutions, percent of all paid users, becoming a major force
international education is a priority for the in online English course market for children. The
Chinese parents. In 2018 China exceeded the USA number of users in third-and fourth-tier cities is
in terms of education innovation and technology growing. The quality of foreign teachers is a key
investment by approximately three to one. Just factor when parents choose English learning
10 companies have absorbed half of this funding. platform. The foreign teachers of China’s online
Online models are proliferating, and Chinese English education brands mainly come from North
consumers, who bring an “online first” mentality, America, Europe and Southeast Asia. As different
are willing to engage with education products. The brands fight for foreign teachers, the recruitment,
quality and feasibility of Chinese private education high salary and staff mobility will become a
are improving, driven by an increasingly urban, challenge (Jiang).
and cosmopolitan population. Choosy Chinese
education consumers are premium preferring Increasing public access to new educational
and internationally minded. The revenue of tools, integrating artificial intelligence in
China’s online education market reached 251.76 schoolwork and administration, and training
billion yuan in 2018 with a YoY growth of 25.7 teachers and students to become more proficient
percent, which was estimated to keep a growth with the technology are crucial for the success of
rate of 16-24 percent in the following 3-5 years. AI-infused education. The use of AI technologies
The growth rate may decline but will have a steady in education can fundamentally change the
rising momentum. The rising acceptance level for spatial and time requirements, as well as the
online education among users enhanced online supply of educational resources. China is also
service payment willingness and improvement building 100 State-level virtual reality education
in the online learning experience and effects are centers to teach scientific knowledge and skills.
the main reasons for the steady growth of the By the end of 2020, authorities plan to start
online education market. Higher education and building 10 demonstration zones to showcase the
vocational education have long been the main latest innovations and practices of AI-integrated
part of China’s online education market and took education. AI technologies have been used in
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