Cultural values, desire to succeed drive education
Education is one of the fastest growing consumer expenditure categories in China, driven by an emerging middle class and a culture that prizes educational attainment. Chinese parents assign a high priority to education, believing that it is a critical advantage in China’s increasingly competitive job market.
China already has almost 220 million after-class tutoring students. And growth is expected to continue with more activity online. Online education represented 68 percent of total education investment in 2013. Increased government support for education networks should accelerate online education growth.
Brand leaders, such as New Oriental, Xueda and Xueersi dominate in Beijing, Shanghai and Guangzhou. These brands are attempting to increase the productivity and margins of their existing locations, while also looking for growth opportunities in underserved cities.