After the opening of the national second-child policy, the number of newborns has increased rapidly, especially the awareness and demand for early childhood education in young families. Early education has been hailed as the “everlasting sunrise industry†and has become the first choice for many entrepreneurs. Let's take a look at the five major trends in the early education industry in 2017.
The “In-depth Research and Investment Forecast Report of China's Early Education Industry in 2017-2021†issued by China Investment Consultant pointed out that the early education industry has the following development trends:
1. The offline content business has more advantages for online extension, thanks to the accumulation of offline brand advantages.
In 2015, the survey of parents' awareness of early childhood education brands from 0-6 years old showed that the brand recognition of Qiaohu, Baby Tree, Bevao, and Baby Bus was in the forefront, among which Qiaohu accumulated as an offline content provider. Rich brand advantage, the first among the online brands.
2. Internet + education urges the transformation of traditional offline content providers and expands online services
Offline content providers: early childhood education brand join + preschool toys + books audio and video products; online content providers: kindergarten education information solutions + preschool children's education APP;
3. The growth rate of private kindergartens in recent years is lower than that of public kindergartens. The concentration of the industry is not high and needs to be continuously integrated.
In 2012-2014, the growth rate of private kindergartens was much lower than that of public kindergartens, and only 5% in 2014. The top five private kindergartens: Hung Hom, Red, Yellow and Blue, Beijing Boyuan, Dadi, Golden Cradle (5,250 in total), the brand kindergarten market CR (5) is only 3.8%, and the market share is very low. Faced with the downward pressure on the growth of the industry, offline kindergartens and early childhood education institutions urgently need to integrate and stand out.
4. Quality improvement and expansion of radiation surface are the development trend of kindergarten market and early education institutions.
Listed companies are actively deploying high-end flagship kindergartens in the branded kindergarten golden cradle layout. The Hung Hom education chain is fast. Compared with inclusive kindergartens, private kindergartens must seek longer-term development and must improve quality while accelerating radiation. Listed companies are actively acquiring offline kindergartens to create more high-end direct-operated brands, and then extend to the upstream and downstream, becoming an integrated solution solution for overall operations, integration of portals and ancillary services.
5. The online home interactive APP is favored by investors and one of the potential for future online terminal development.
In view of the low communication efficiency between parents and kindergartens, the home interactive APP can build a solution platform and integrate resources. In the past two years, APP has received billion-level financing, which has great potential for development.
Source: China Investment Advisory Network
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