Article

Moving Toward New Height

Deloitte Education Industry Report 2017

The Report

Moving Toward New Height: Deloitte Education Industry Report 2017 was co-authored by Deloitte TMT Industry and Deloitte Research Team. This report explores the major transformative trends of six "new heights" in the area of China's education industry under the impact of government policies, capital inflow, technology, social concepts and other key factors.

 

Viewpoints / key findings

  • Height 1: Sub-sectors are showing "full blossom"
    The rapidly increasing prospect of private pre-school education will see the rise of early childhood institutions and brand development of kindergartens; The K12 education and training giants promote the multi-domain layout and further strengthen the standardization. With the acceleration of vocational education group collectivization and in-depth cooperation between colleges and enterprises, the application of new technology in non-diploma education area has broken up the traditional tutoring model; Enterprises have been involved in making arrangement for international schools to further advance the asset-light model; In addition, the new version of Promotion Law accelerates the securitization of educational assets and advances the transformation of private education institutions.
  • Height 2: The capital market seizes the initiative to promote the level of acquisition and assets securitization to reach a new height
    As the listed enterprises have more urgent demand for transformation, the scale of mergers and acquisitions has surged and peaked in 2016; The wave of listing on the New Third Board led to the sharply increasing number of education asset securitization, which hit a new record over the past years. Furthermore, the educational technology has become popular investment field.
  • Height 3: STEAM education (Science, Technology, Engineering, Arts, Mathematics) embraces the golden age
    With favourable government policies and funding support, the first-tier cities are expanding rapidly, while social capital inflow has promoted the training institutions to become the main forces of STEAM education. At the same time, with the support from government and society, the first-tier and second-tier cities will present the booming trend and become one of the focus markets in the future.
  • Height 4: The trend of "going global" is continuing to heat up
    The policy of Belt and Road motivates China's education industry to "going global", vocational education institutions, colleges and universities have become the leading ones in paving the way. And the digital infrastructure construction of education has been one of the most powerful export models.
  • Height 5: The education kind of the real estate projects have expanded rapidly, which further enhances the combination of real estate industry and education industry
    The cross-border cooperation has been taking place among education industry and real estate industry, generally speaking, the traditional cooperative ways can be divided into three modes, namely, the sponsorship, cooperatively-run schools, and independently-run schools. With the continuous deepening of integration of education industry and real estate industry, the "education complex mode" has emerged under such circumstance, further boosting its core position in real estate.
  • Height 6: Technology redefines education and therefore promotes the unprecedented revolution in the field
    New technologies such as artificial intelligence, digital technology and VR technology has triggered a new intelligent, digital, dimensional and flat-styled tendency in the education industry.
(English version will be available in September 2017)
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