Renowned educational institutions and big companies such as Baidu are benefiting from the emerging online education market in and outside China. It is a trend that has the potential to benefit the entire Chinese population.
According to Statista, the revenue generated by online education in China in 2019 reached 272.7 billion yuan. By 2020, China’s online education market was expected to reach 315 billion yuan. With the increasing emphasis on education as well as an increasing number of businesses providing online education for their staff, the online education market has great potential for development.
Covid-19 boosts online education in China
As Chinese parents have high expectations toward their children’s academic achievement, online education has become the newest trend for “Tiger parents” during the pandemic.
Children’s education is now the most active section in China’s online education market, counting 20.8% of the total market. New parents have stronger education consciousness and higher consumption capability, and with the development in internet access, their children are more familiar with online education.
The most active mobile app for online education is VIPKID, which connects K12 students with teachers in the United States and Canada. This platform enables students to receive 25-minute English language lessons from fluent English-speaking teachers through a video chat platform.
Societal pressure for education
Education is an important factor everywhere, but in Chinese society, it has deep cultural meaning. Measuring success according to achievements is prevalent, and the pressure is really high. Competition starts at the youngest age and getting good grades is not only a way to make sure to have a bright future, but it is especially a requirement to prove to others that you are not a failure.
The concept of “DiūLián”(丢脸 – losing face) is one of the most pervasive concepts in Chinese culture. A child that brings home bad grades will lose face, but also humiliate his parents, who will be perceived as “not good enough”. It is not unusual for parents to spend more than a third of their revenue on their children’s education. The social pressure is very high and competition is fierce for children as well as for parents.
Opportunities for online education
Online education is a very promising and vibrant market in China that will only grow bigger in the years to come. Especially in fields like science, technology, and the English language, as those are the skills most often required of the students when they search for a job.
As is always the case in China, there are many competitors and thoroughly studying the market is a necessity. Alliances and partnerships with local companies can help you enter the market quickly and will let you benefit from their image to have customers trust you more easily.
Digital marketing is another option, but one which is quite different from how it works in most other markets. Call on a specialized agency for help, to make sure your product has an efficient entry.