New Era of Education
China Education Development Report 2018
New Era Of Education — China Education Development Report 2018 was co-authored by Deloitte Education Industry, Deloitte Research, Deloitte Risk Advisory, Financial Advisory, and Consulting team. With the adjustment of Chinese population structure and consumption upgrade in domestic market, education consumption has played an increasingly important part in China's household consumption, which allows China education market to maintain the positive development situation. It is seen that the 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 against the background of new era.
Viewpoints / key findings
1. New development cultivates more opportunities
- China education industry has acquired considerable importance from policies, consumers and capital, showing its expanding period on the basis of overall industry scale and market activity.
- Since the year of 2017, a host of education policies have been launched to lead education industry to explore informatization path. Online education, and technology education still remain popular for investors, Hong Kong stocks and US stocks will see a flood of education organizations' listing.
- Following the development of needs and policies, China education market is posing new development trends: international education, technology applications, talents management as well as operation will present new opportunities for education advancement.
2. New education philosophies enable students and schools
- International schools is 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, growing number of students studying abroad, and the explosion of high net worth individuals. Besides, listed education groups, regional education groups, and overseas education companies 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.
3. New applied technologies have infiltrated into education industry
- New technologies are taking appearance and rushing into education industry. With the improvement of big data, artificial intelligence, stereoscopic technology and other technologies, it is expected that the long-standing problem of unequal distribution of resources in education industry will be elevated in the near future.
- Deeper level of mobility, optimized and upgraded products, wide range of applications of AI/big data technology, and integration development of online and offline modes have led education industry to attach a more advanced intelligent era.
- Current applications of technologies in education area can be divided into three types: indirect auxiliaries, direct learning, and basic operation.
4. New motivation model tackles the talent challenges
- In recent years, private education industry has entered the stage of rapid expansion that highly valued and driven by policies, consumers and capital. Changes in business environment, opportunities of informationization, and higher labour costs have placed unprecedented demands and challenges on talents management in private education enterprises. Accompanying with the gradual improvement of meticulous management in enterprises, combined incentive modes and partnership mechanisms may tend to be new trends in the future, become an important tool and means to manage talents for enterprise.
5. New management system improves operation effectiveness
- With the iteration of education market, education institutions has evolved from binary relation between teaching and learning to a more complex network of inside and outside relations.
- In terms of business operation, education institutions need to build core capability in technology, platforms and faculty while exploring diversified and sophisticated marketing strategies.
- In terms of risk management, the organizations should improve crisis management system and enhance strain capacity. Furthermore, along with the changes of regulatory requirements and trends, education institutions should take actions to refine management and standardize management and control on the basis of full understanding of regulatory requirements.