New chess game for education and training industry

In just two months, the amount of private equity financing in China's education and training has reached hundreds of billions of dollars, believing that capital intervention will break the long-term balance and plunge the market pattern into a new round of games. November 5, Guangzhou excellent education won the Shenzhen Daxin Investment Company A sum of 8 million U.S. dollars investment, so far in the past few two months, publicly disclosed to the Chinese education and training industry venture capital has reached 122 million U.S. dollars. Several other investment cases are more interesting, they are Macquarie Bank, such as investment in amber Education 54 million U.S. dollars, qiming venture Investment and SIG joint investment giant Education group 20 million U.S. dollars, Carlyle Investment in New World Education group 20 million U.S. dollars, Sai Fu Fund Investment in China International 10 million dollars,　　and Ding Hui investment education 10 million dollars.　　　　　　In the industry on New York listing and global IELTS large financing of the memory is still not far away, at every turn of billions of dollars of "hot money" again began to contact with the Chinese education and training industry, so that the wealth of the story to deduce more in full swing. Hundreds of billions of industrial scale the market space of China's education industry is indeed enormous, specifically, including lifelong education programs, from kindergarten to higher education, vocational education, and more than 4 million of the annual employment training of university graduates. China now has more than 4,000 universities, 550,000 primary and secondary schools, 150 million pupils and 700,000 kindergartens. It is hard to find a country that will devote enough time and energy to self-education and the next generation of education, as China does. Statistics show that education spending in China has surpassed other living expenses to become the second largest daily expenditure after food.　　Everyone, every family, every business is a market. With the rapid development of China's economy, the original education system has begun to evolve to pluralism and practicality because it cannot meet the demand of the market. In this process, the Chinese family's emphasis on education, employment pressure, the gap between the theory and practice of the traditional education system, the implementation of the accreditation system and the relaxation of the policy of running a school provide a broad opportunity for the development of the education and training market, and the private education has also entered a virtuous rising period. At the same time, with the wide penetration of the Internet in people's lives, the location of education and training has been expanded from classrooms to the Internet, through the combination of new technology, including distance education, enterprise training, channel provision and other services are beginning to rise.　　Because of the high profits, coupled with the technical and financial barriers to entry are relatively low, the Chinese education and training market has been recognized as "Sunrise Industry" and 2007 the most "money scene" of the market, the industry estimated the size of the industrial scale has reached hundreds of billions of dollars. Investment education can not be urgent education industry to receive money after the mode of service, eliminate the risk of receivables, whether from the operation or from the investment point of view, are rare. On the one hand, from the operating agencies, because of the particularity of the education industry, brand accumulation and service cycle is long, only rely on their own rolling slow development is difficult to meet market demand, from venture capitalists to obtain fundsEnrich yourself and become an effective way to enhance competitiveness; On the other hand, from the investment institutions, because the education industry is limited by government supervision and other factors, the current more suitable for capital entry or private background of education and training, therefore, China's private education sector, especially the non-academic training market,　　Is becoming the various road PE and VC's military battleground. However, looking back at the venture capital education enterprises, giant education for 7 years, the education has been established 6 years, the Chinese Learning Network for 10 years, and the new Oriental from the establishment to the Nasdaq listing for a full 13 years. The nature of education itself is destined to invest in the industry must have a certain degree of patience, followed by the establishment of a brand to build a team.　　After all, the sustainable development will be those with market-oriented, product research and development capabilities, the characteristics of school-running, curriculum system is complete, and truly establish brand, integrity service education and training institutions. The market division of Labor will be more detailed at present, the education and training business in China can be divided into two categories: the employment retraining of senior talents and the training of entry level skills. The former includes vocational English training, it training and other advanced vocational skills training, along with the increase in personal disposable income and the employment market for language and other capacity of increasing attention, combined with the success of the Olympic bid and China's accession to the stimulus, its demand scale is expanding, the latter includes the automobile repair, cooking, hairdressing and other primary skills training,　　In the current stage of China's industrial restructuring and upgrading of rural residents in the process of urbanization occupies an important strategic position, there is also a growing space. The entry of foreign capital undoubtedly brings vigor to the whole education and training market, it can be foreseen that the future market division will be finer, the concentration will be higher, and the phenomenon of training institutions will be improved. However, it is noteworthy that more and more enterprises enter, in the current market concentration is low, the chain degree is not high, will face more intense competition and the process of the fittest. Prior to this, although large training institutions have a large market share, the ability to absorb resources is also strong, but can not completely monopolize the market, some small and medium training institutions, although the lack of their own teaching materials and a stable teaching staff, only dozens of people, a few classrooms, several computers, but because of flexible operation, low price positioning, It is not difficult to find their own living space.　　But in the long run, the brand of training institutions has become an important strategy for survival and development. Because of early start, the advanced talent training market has been praised by the capital and government support earlier, but the previously unknown training of primary skills with a large influx of capital is undergoing drastic changes. Most of these industries have already formed the "local princes", because of years of accumulation, its annual input can be controlled at a lower level, the profit is very considerable. Previously, such training institutions do not lack capital, real competitors are not much, there is no strong demand for rapid expansion, so also relatively low-key. However, this situation is being broken, it is understood that there are already a considerable number of VC and PE are and various areas of regional leaders approached, hoping to use the power of capital to form an industry oligopoly, change the situation of each other. Believe that the intervention of capital will gradually break the long-term balance, the education and training market pattern into a new round of game.