English training encounters closure door cold snap face industry big Shuffle

For many years in the rapid development of 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. In fact, with the gradual collapse of the industry bubble, a few years ago by VC, PE favored education and training industry is no longer the darling of the capital.　　Industry insiders believe that the investment has been overheated industry, the next period of time will appear a sharp round of market reshuffle. The English training market encounters the "closed door" cold spell at the end of October 2009, the so-called more than 100-year history of English language training institutions, the spirit of a number of national training centers closed the news. In fact, over the past few years, the High-profile English-language training agency has repeatedly spread rumors of a school shutdown.　　From the beginning of 2009, the spirit of the wind in some of the country's urban teaching point of "bankruptcy, suspension, roll money escape" situation: January 18, 2009, Hong Kong, the spirit of the wind bankruptcy; July 30, the Shenzhen spirit lattice wind deserted. It is understood that last October 26, Shanghai Xuhui Wind English Training Center, the only remaining two teaching points-the closure of the same time, locked door posted a Notice: "The monthly loss as high as hundreds of thousands of yuan, the overall operation is unsustainable."　　"It is reported that 1300 students in Shanghai to the spirit of the wind to pay the 40 million yuan tuition fees are also missing;" October 29, Ling-Feng Wuhan Training Center Wuchang, Hankou Two training points also locked the door, facing the empty teaching point, hundreds of students also fall into the "pay money but no class" embarrassing situation. After the closure of Shanghai and Wuhan in October, the Guangzhou training point is also closed easily. Guangzhou Ling Ge Feng, a senior official confirmed that the Guangzhou East Col Wind has been headquartered in Shanghai, the new dynamic Education Group acquisition, its 3 teaching centers (, Mayflower and Fortune Plaza) of 2000 trainees and more than 100 employees were all taken over by the new owner.　　A series of closing events formed a domino effect, and the spirit of the wind incident gradually escalated into a nationwide focus. The collapse of the spirit of the wind, but more than a number of foreign language chain training brand encounter "closed door" in miniature. In mid-December 2009, an English investor who had been operating in Shanghai for 13 years, claiming to have more than 170,000 graduates, suddenly disappeared. Authorities said that the three foreign leaders whether to carry out the flight is still uncertain.　　According to people familiar with the matter, since last July, the financial situation of Kane's English has been deteriorating, arrears of teacher wages, property costs, rent nearly million yuan, many staff members to leave the period. 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." [Page] industry big Shuffle hasInevitably for the successive school closures, the industry generally believe that the reasons leading to 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, there is a bubble in the Chinese English training market, a few years ago, many English institutions in order to seize the market to accelerate the pace of expansion, but the cost has not yet recovered on the unfortunate encounter with the economic downturn and English training in the demand for consumption of shrinkage. 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, in the past two years, the various VC, PE favored education and training industry, now is no longer the hot money scrambling to the field. Lowen, general manager of Warwick International (CID), said in an interview with the network, the 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 industry, "of course, there will be investment overheating phenomenon, vicious competition is inevitable."