Thenext "New Oriental"--300 billion education industry digging gold Map

Education and training "not bad money." In the next 5-10 years, China's education and training industry will reach 300 billion yuan scale.　　The new Oriental only occupies 20% of the market share in the Language training subdivision area. What does new Oriental mean? Strong brand, king status, more than 2 billion dollar market value, continue to grow.　　After Mr Yu, however, there was no second new Oriental in the entrepreneurial armies of the education industry.　　On this 300 billion industry map, where is the opportunity? What is the minefield? What are the reasons for the entrepreneur's listing? In 2008, the financial turmoil hit, but the amount and amount of investment in education and training projects did not fall back.　　What is the most capital-favored innovative business model?　　Please see the 300 billion education industry digging gold map.　　Where is your territory? There are several major categories in the field of education and training: language training, vocational training, management training, teaching and training, and early education. These categories attract more than 90% of investors ' capital. The record of higher and faster investment has also spawned a group of star companies that have been driven by capital. In addition to the new Oriental in the field of language training alone, in other areas so far has not seen any training institutions can command the world.　　What are the entrepreneurial opportunities in these areas? ① Vocational Training (also known as skills training), in Europe and the United States is a very developed area, but in China has been not too much, many of these training within the enterprise to complete.　　However, with the gap between the talent training system and social demand, vocational education as an important substitute for academic education has surfaced. Among them, it training is the most capital concern, the competition pattern is also more stable. Over the years, Beida Jade Bird, the Chinese Academy of Sciences Software Institute, NIIT and Neusoft accounted for nearly half of this market. In the near future, there is a Chinese-education international, meeting the public puzzle to obtain venture capital. Public data show that 2007 China's IT training sales of up to 4.58 billion yuan. In addition, auto repair, cooking, beauty salons and other market segments have emerged in many enterprises. North Auto Repair, the North Jade Birds have launched overseas listing procedures. Investors interviewed by the entrepreneur, without exception, are bullish on vocational training. "This market is going to get bigger, and the country has policy support to promote employment." "Entrepreneurial threshold: 1. The requirements for hardware facilities are stricter than those of other training industries. For example, the school to buy a large number of motor vehicles for teaching and student practice, coupled with vehicle maintenance needs of special tools, school building, auto repair training schools from zero to build the early input to tens of millions of dollars. Choose vocational training as the starting point, start-up funds is the first threshold.　　Because of this, most of China's vocational training schools are the predecessor of the early Technical school, private and state-owned occupation training market for most of the share, but now vocational training is too dispersed the main reason. 2. The marketing means is strong, the celebrity is very important. Most of the students who are skilled in training are social grassroots and need strong advertising. North Auto Repair to spend heavily invited Jackie Chan to do the endorsement, think far IT training image spokesperson is also a household nameHost Hegui. 3. The certificate of completion is to be relied upon and widely recognized. "Imagine, Tsinghua University opened a network game college, Lenovo to run an IT training agency, than the new Oriental to engage in an IT training market much more." "Yang Ji said. He is the founder shareholder of New Oriental, now do venture capital. [Page]② Parent-child education is also a popular market segment for investors. The target of parent-child education is 0-3-year-old babies, while China has about 27 million newborns a year.　　Huge market, emerging industries, a lot of parenting opportunities. The industry sprang up in China in 2003. "Kindergartens are likely to be affected by policies because they are profit-making institutions or public welfare undertakings, and investment risks." But parenting is not the same, and now there is no policy to limit its development. It can be big, chain-operated, IPO, there is no moral hazard. Said Li Yue, vice president of Huaxing Capital. At present, the industry's competitors are not many, mainly red, yellow and blue, Oriental love baby and gold from the United States.　　These three accounted for nearly 60% of the market in the industry. Entrepreneurial threshold: 1. Parent-child education has a high demand for soft teaching and learning methods. To the infant Enlightenment, it is the American education is good, or the Chinese Traditional poetry song Fu, Tread.　　In addition, the design of teaching curriculum should not only combine pedagogy, psychology, behavioral science and sociology, but also draw lessons from foreign mature experiences and develop suitable courses for Chinese babies. 2. Most of the target customers are high-income groups in large and medium-sized cities, with limited client numbers, and the effectiveness of parenting education is difficult to measure with clear criteria.　　How to win customers, meet the expectations of parents is the challenge of such enterprises.　　3. To scale, the need for chain management, the best location in the vicinity of high-end communities.　　③ "Investing in eloquence, investing in the future", you often hear such impassioned speeches at the airport newspaper store. Since the beginning of the century, management training in China on the day of the road, the industry has been all over the grassroots entrepreneurs figure. Before and after 2000, Yu Shivi, Chen Anzhi and other people to the success of the study into China, which led to the management training industry.　　According to industry estimates, the Chinese management training industry market size of 60 billion. Management training industry is the lowest threshold in all training industry, and its core asset is the lecturer. The start-up period does not require a large amount of hardware input and teaching research. All it needs is a super passionate lecturer, and the instructor is probably the entrepreneur himself. Looking at the founders of China's management training companies, it is not hard to find that these people share the same characteristics: born poor, self-made, perseverance, and finally become the end.　　Their greatest asset is the history of individual struggles, with packaged language and gestures to inspire students ' desire for success. Human Vision Company's products "learning-oriented China" in the industry has a small reputation, its chairman Liu Jingchen is a pioneering business model in this field. He graduated from secondary school, poor family, in order to sell a course for several months for thousands of hours of telephone calls, called "China's first telephone marketing." By chance, he was invited by someone else toLectures, earn the first class fee and start to set up a management training course, hands-on teaching.　　Now he is a "senior expert" active in the management training market.　　The low threshold of the management training industry has led the industry to develop much faster than other training areas, and its application of the crowd and coverage is far more than other industries, can be described as the blessed land of grassroots entrepreneurs. In fact, no matter which subdivision of the education and training industry, there are large enough markets from different angles. But there is not a single big phenomenon in every field. For example, primary and secondary schools, to win the favor of the VCs have to learn, learning and thinking, giants and many different characteristics of the guidance agencies, and different regions have large and small different types of teaching-assisted training courses. These institutions also have good results on the local geographical advantages, but because of the extensive management methods and the limitations of understanding, so that the regional guidance agencies rarely long-term development. "Therefore, the market is not a problem, the key is the ability to manage the pace of development to match." Management ability is the decisive factor of whether the private training institution can be big. "and June Consulting partner Cai Mong commented. [Page] Beware of a joke from the investment community in the minefield that it is difficult to pay for education and training.　　There are many opportunities in this industry, but is it a 0 risk? Mr Yu was anxious in February 2005. The Ministry of Education announces that English CET certificates are no longer linked to degrees. Thus, the new Oriental income fell 20 million yuan. Mr Yu's sense of stress doubled. In a restaurant in Beidaihe, Old Yu was drowning in alcohol.　　On the way back to the hotel at night, I took a drink and jumped into the water. The biggest risk of the education and training industry comes from policy. The following three major minefields, you should pay particular attention to: mined areas: Private education regulations in the field of education and training, private enterprises can not compete with the state-owned forces, the latter has no dispute over the best facilities, the most favorable policy environment and the most powerful teachers camp.　　But there is a small area of education is loose, private schools become private capital into the education of a log bridge.　　However, this log bridge is not easy to go. The state has promulgated the "Private Education Promotion law" in order to standardize the running of private schools, expressly stipulates that private schools shall not aim at profit, but allow the investors to obtain reasonable returns from the running balance. A private school responsible for this laugh and cry: "That is, the State stipulates that we are engaged in education is a public welfare cause, can not demand return."　　But is it not a contradiction to think of us as a business in taxes and policies and as a business for profit? The unclear state policy and the strict rules of running conditions make private schools in China always in an awkward position. Public information shows that a private secondary school in Beijing in 2000, the total expenditure of the school career is 4 million yuan, 2008 total expenditure reached 13 million yuan, or more than 300%.　　The cost of private education increases far beyond the speed of enrollment expansion. Minefield: Local policy swings the Bai Zhiming of Hohhot has been a frown for nearly a year. As a two-level agent in a middle school in Beijing, heIt hasn't been sold for a few months.　　In 2007, Bai Zhiming became the exclusive distributor of a middle school in Beijing in Hohhot, and he bought a lot of schools to learn the spot cards and then sold them locally to earn the difference. Bai Zhiming's clients are mainly junior high school students. They have plenty of time and a lot of demand for coaching. Bai Zhiming purposely rented offices near several secondary schools, bought computers and hired tutors. At the beginning, Hohhot parents are not optimistic about the way the network teaches, they do not rest assured that children spend time on the teacher's learning style. Bai Zhiming 1.1 point to the consumer counseling, to do everything possible to get cooperation with the school. Through the school to tell parents, the network can answer any of the children's problems, and the test questions more complete, more teachers, more convenient operation. Finally straighten out the terms of cooperation with the school, parents gradually accepted the way of network counseling, Bai Zhiming thought harvest season arrived. But never expected, Inner Mongolia Department of Education issued a decree, do not allow junior high school to open network classes. clatter, Bai Zhiming early efforts are all in vain.　　Thousands of points card in the hands of selling not to go out, Bai Zhiming helpless.　　Minefield: The territory of the new Orient even the way the forefathers had traveled, there was also thunder. New Oriental is the TOEFL and GRE exam coaching started, and today, these two are still the core business of the new Oriental Plate. "If you move the new Oriental business, Old Yu will be very angry." Yang Ji said, "The new Oriental is constantly expanding the type of training, but it is the core of these two pieces." If there is a competitor, old Hui try every means to defend his territory. "No way, Old Yu can bring us these people back, we will certainly work hard to tell him." Yang is now the investor, he and some old colleagues from the new Oriental plan to set up a fund to invest in education and training fields.　　They are investing in their own principles, one of which is to never invest in the same business as the new Oriental. Global IELTS founder Zhang Yongji has been two card toss and die: Social Power School License and private non-enterprise registration certificate. (Policy risk is like a roller coaster, to carry it) [Page] Education + technology, capital New Oriental is a watershed in the training industry, it let the capital see the domestic basic livelihood consumption in the field of huge investment potential, education is the necessary choice in this field. After the new Oriental, the business model of the training market has changed. To date, of the 5 companies listed in the United States, 3 of the training business mainly rely on the Internet to launch.　　"Education + Technology" is becoming the main mode of business training. At the end of 2006, a German education founded by British Chinese Li Guodong was jointly funded by ASI, the Silicon Valley angel investor Russsiegelman and the co-founder of the new Oriental Xu Xiaoping. A German is to do the oral training enterprise, its business model is, the virtual telephone call center applies in the spoken language training, enables the student to realize the one-on-one spoken language training. Germany quickly became China's largestOral English teaching institutions, each month to accumulate more than 10,000 hours of teaching time. "It's hard to imagine how many teachers and how much teaching resources it takes to spend 10,000 hours in a traditional way of education, but it's easy to borrow our platform," he said. "Li Guodong said. His inspiration comes from America's largest telephone call center, LiveOps. The call center has 20,000 employees scattered around the country who work for it. A German in the virtual telephone call center technology based on the improvement, so that this technology can be used in oral teaching. Spoken English teachers in the United States can use this system for teaching. "We will have tens of thousands of teachers in the United States. One Germany's core competitiveness will gradually strengthen.　　"Li Guodong said. In the 2008, the "Education + Technology" model released a satellite, vibrating the industry. The Amber Education Group received 103 million dollars in the largest single private placement fund in China's education sector.　　At this point, amber through the rounds of financing, the total amount of accumulated financing has been as high as 172 million U.S. dollars, more than the new Oriental in the NYSE listed 112.5 million U.S. dollars in financing, but also the previous Nasdaq-listed education companies on the day of the IPO raised the amount of money raised.　　Amber said it "uses information technology to drive education services," but many investors and insiders interviewed by the entrepreneur have "no idea" or "less optimistic" about the amber model. Amber's CEO, Huang Jin, worked in Silicon Valley. 2000 she returned to business, do software products. After the dotcom bust, after 2004, the positioning of amber from software products to education services.　　The main business of the three major sections across basic education, vocational education, corporate education. "Amber advocates the idea of lifelong service, starting with the child and hoping to serve the old." Huang's brother, Amber's vice president, Huang Gang, said to the entrepreneur. Amber's teaching mode is divided into online and offline, the main business of the three major sections covering almost all the training industry content. Throughout Amber's line of business, it has almost dabbled in all areas of the training industry.　　How does Amber manage to sweep the education and training market just by one company's own strength? After the introduction of 54 million dollars in financing, Amber began to fast horse rodeo. In less than two years, Amber has acquired more than 10 educational and training institutions in 10 provinces, involving extracurricular tutoring, language training, vocational training and so on.　　Huang has said that Amber will be mainly from six aspects of the acquisition of the Enterprise integration: the first is the enrollment system to promote the work of marketing, and then the teaching management, and then IT systems and finance, and these linked to the brand. However, different education and training areas, the different teaching methods, the target population differences, on business management, marketing, organizational processes have a focus. It's like the Big Dipper Training School where the new Oriental is involved in vocational training, the performance has not been satisfactory, the brand influence is far less than those professional to do vocational training enterprises. The rapid acquisition of Amber in a short time, the ability to digest smoothly, is a concern of many people in the industry. "It's too many lines of business,I don't know where the core is. "The entrepreneur," said the partner of a well-known venture capitalist, "We talked about Amber early in the financing, but I see the primary and secondary school tutoring, it training, corporate learning outsourcing, English, Austrian number it all do, we did not dare to vote." Even if it goes public, I personally don't think it will do too well. "Investors notice, please do not be dazzled by the business model."　　[Page] where is the next new Oriental?　　Now, "New Oriental" These three words are not simply a name, it represents a strong brand attractiveness, the industry's supreme position, large-scale market capitalisation, sustained development.　　Will the education and training industry under the help of capital and technology give rise to the next new Oriental? From the industrial environment and capital environment analysis, it must meet the following conditions at least: first, is a subdivision of the field of No.1.　　But language training is not included in the same market, the first one.　　Second, it may appear in a shares. The entrepreneur, in an interview, learned that there are no fewer than 20 local Chinese training companies embarking on overseas listings. But from past experience, there are no more than 5 Chinese concept companies in the same industry that the U.S. stock market can hold.　　And China's education sector in the United States has appeared in 5, the United States to go public, it is difficult to have good performance.　　By contrast, the domestic a-share price-earnings ratio has exceeded the U.S. stock market, China's companies are more familiar with China's policies, environment, language, compared to the United States on the way to the U.S. listing, a shares obviously more explosive potential.　　Third, there is a legal framework to circumvent policy risks. After the IPO of New Oriental, the first batch of training companies to obtain venture capital have developed the overseas listing structure according to the requirement of venture capital. China's capital market, there have been Kennedy science and education, top technology and other educational companies, but all because of a variety of problems and retreat from the city.　　If the education and training enterprises want a A-share listing, how to form the company structure?　　Forth, there is an innovative business model. As mentioned above, "Education + technology" will be the mainstream of the future education model.　　The traditional face-to-face teaching gave birth to the new Oriental, the next new Oriental must be through innovative business model to cover more people, to obtain stable income.　　Five, the entrepreneurial team should have the heart of the teacher. Preaching, tuition and dispel doubts are always the foundation of a teacher.　　The founder of the education and training enterprise is not necessarily the teacher, but it is the heart of the teachers who can balance the relationship between educating and making profits. Tips New Oriental model is also known as the Red chip listing. "Red-chip mode" refers to the actual control of a enterprise in the territory of the individual in the name of Caimas, Is., Viking, Bermuda and other offshore centers set up SPV (Special purpose company, Shell company) B Company. by B Company in the territory to set up a wholly foreign-owned enterprise C. C Company and a company signed a contract, by C Company to provide consulting or management services, a company most of the profits as a consultancy service fee input C Company. B Company has the role of financing foreign private equity firms, and thenOverseas IPOs, to reach the purpose of the curve listing. New Oriental September 2006 listed, the earliest identity is private schools. Under the "Private Education Promotion law", "can not be profit-oriented" restrictions, new Oriental School does not have the listing qualification. Internal and external reasons for the establishment of New Oriental Oriental Education Group, set up outside the shell company. The new Oriental Education Group is in parallel with the new Oriental School. The profits of the new Oriental school are handed over to the group in the form of consulting fees each year. Although it is the move of the left hand inverted right hand, but legally evade the risk, thus can legitimately to the company form to the overseas listing, to the domestic many education training company brings the demonstration effect.