English training frequently closed door hot money does not favor the industry facing shuffle

Source: Internet
Author: User
Keywords Hot money English training
January 6, 2010, located in the main road office of the Chengdu Science and Education Training Center, more than 20 square meters of office, in addition to scattered information on the ground, all the furniture disappeared, the boss mysterious "disappearance."  Wang Hui, general manager of the center to Jinjiang District Public Security Bureau reported that Co Cheng education behind the boss Yang Jiabing is likely to roll away more than 1200 college students more than 300,000 yuan training costs. The English training market encounters a "closed door" cold spell in fact, such cases are not uncommon. A person in the industry revealed that: in November 2009, there are 6 branches in Beijing, specially for the first high school students to carry out extra-curricular training institutions Wen Luxinghua Education suddenly closed, million training fee disappeared; January 4, 2010, Beijing Rui came to English training school "due to financial difficulties suspended." The industry said: "In Shanghai, Guangzhou and other land, there are many training schools suddenly closed, it seems that the training market of winter." "For many years in the rapid development of the foreign language training industry, is definitely an exceptionally cold winter." It is understood that the spirit of the Wind, Kane English and other chain of foreign language training brand failures, so that the industry is facing unprecedented social trust crisis. Industry insiders believe that the investment has been overheated industry, the next period of time will appear a sharp round of market reshuffle. It is understood that nearly 10 well-known foreign language training institutions around the country caused the failure of students tuition fees can not be refunded, which has been a very prosperous foreign language training industry is experiencing an unprecedented winter.  In the words of an industry personage, the successive "closed doors" incident, "let the foreign language training industry is facing a serious crisis of trust."  Industry reshuffle has been inevitable for a spate of school closures, the industry generally believe that the cause of the closure of these English training institutions, on the one hand, due to poor management of the capital chain broken, but deeper reasons, but also in the foreign language training market there is a relatively serious bubble. There is no doubt that the financial crisis to the white-collar people's biggest impact, such as Ling Linguaphone, white-collar as the main target group of foreign language training institutions are seriously affected. But the financial crisis is just a trigger for training institutions to "close doors". According to the introduction, along with the rapid development of the market and training institutions rapid expansion, high-end English training market competition has become increasingly white-hot.  At the same time, a number of training brands to choose the rapid development of the franchise business model, these training institutions usually select expensive high-end office space, input cost is very high, in the face of the financial crisis when the students are not guaranteed, it is very easy to encounter the capital chain rupture and eventually eliminated. Guangzhou Jiangning, director of the training center, said that the current failure of foreign language training institutions, this is the entire education and training industry bubble suffered from the economic downturn of the inevitable result. In fact, the Chinese English training market has a bubble, a few years ago, many English institutions in order to seize the market to accelerate the pace of expansion of the opening of the shop, but the cost has not been recovered on the unfortunate encounterRecession and the shrinking demand for English-language training. However, the operating costs of these training institutions have not decreased as a result of the decrease in the number of trainees; On the other hand, the shrinking of consumer demand means the lack of funds to support institutions ' subsequent operations, and many institutions will eventually be forced to declare bankruptcy because of the broken capital chain.  Yega, an associate researcher at the Guangdong Academy of Social Sciences, who studies education issues, said, "Now, the education and training industry is experiencing a bubble burst, followed by a sharp reshuffle in the market is inevitable."  Hot money no longer favors the education field it is understood that in the context of the financial crisis, the education and training industry due to the stability of return, the risk of relatively small, has become a "haven" venture. However, the successive school closures, not only the private education and training institutions are facing a crisis of trust, but also has been considered to have a "risk-resistant, anti-cycle" advantage of the education and training industry has exposed a certain degree of investment risk. In fact, the education and training industry, which has been favored for the past two years, is no longer an area of hot money. Education investment institutions are generally distributed in the field of non-academic education, simply to avoid the risk of focusing on the education of such a rigid demand of the industry, of course, there will be investment overheating phenomenon, vicious competition is inevitable.
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