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A new era of education

China education development report 2018

A new era of education - China education development report 2018 was compiled by Deloitte Education Industry, Deloitte Research, Deloitte Internal Control, Financial Advisory and Consulting team. With the adjustment of Chinese population structure and consumption upgrade in domestic market, education consumption has been playing an increasingly important part in China's household consumption, which allows China's education market to maintain the positive development situation. Influencing factors such as policies, capital, economic development, education philosophy, technological innovation, talents, management and operation will address new opportunities and challenges for future education market in the new era. The following is a summary of the report:

I. More opportunities triggered by new development trends

  • China's education industry has been highly valued for its significance by policies, consumers and capital and under its expansion phase in terms of industry scale and market activity.
  • From 2017 and onwards, the government has promulgated policies regulating various prospects of education to guide the informatization of the education industry; Online and technology-powered education remain the most sought after area for investors. 
  • With policy changes and increase in demand, new trends are emerging in China's education market: international education, technological applications, talent management and operational management will bring opportunities to grow.

II. Empower students and schools with new education philosophies

  • International schools are still in the period of expansion due to parents' requirements on differentiated educational products. The market demands are mainly contributed by the increase of Chinese residents' expenditure and willingness on education, a growing number of students studying abroad, and the explosion of high net worth individuals. Besides, large domestic listed education groups, regional education groups, and foreign education groups act as the major players in international schools.
  • In the future, international schools should help students better adapt to the ever-changing 21st century, and at the same time, form core competitive power of products and modes through multi-dimensional empowerment.

III. New applied technologies have infiltrated into the education industry

  • New technologies have constantly emerged and penetrated into the education industry. With the advancements in big data, AI and stereoscopic technologies, imbalanced allocation of resources and other issues in the education industry may be addressed.
  • Factors including deepening mobility, constant product improvements and upgrades, the support of AI/big data, and the integration of online and offline education, will lead online education to a higher level.
  • Currently, the technology applications in the education industry can be divided into three types: indirect auxiliaries, direct learning, and basic operation.

IV. New motivation models tackle the talent challenges

  • In recent years, the private education industry has entered into rapid expansion under the close attention and great support from the government, consumers and investors. Due to the changing business environment, incoming informatization trend, and constantly increasing labor costs, private education enterprises are facing unprecedented requirements and challenges in talent management. In the future, with the refinement of management, complex incentive plans and partnership may become important tools for corporate talent management.

V. New management system improves operational effectiveness

  • With the iteration of education market, education institutions have evolved from binary teaching-learning relation to a more complicated relationship network, namely an inclusive industrial relationship.
  • In terms of business operation, education institutions need to build core capability in technology, platforms and faculty while exploring diversified and refined marketing strategies.
  • In terms of risk management, the education agencies should improve crisis management systems and improve adaptability to crisis. Furthermore, along with the regulatory changes and development trends, education agencies should take actions to refine management and standardize management and control on the basis of full understanding of regulatory requirements.
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