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The composition of the K12 training industry chain is divided into upstream (Children training materials suppliers, office leasing and teacher resource) and downstream (school-age children and their parents). For a long time, K12 training institutions rely on the products and operations to manage the industry itself; but in the short-term, the foothold of the industry needs to rely on marketing.
Primary and secondary school tutoring market in China has increased from CNY 123.8 billion in 2007 to CNY 283.4 billion in 2011; the market growth rate is significant.
At present, the number of pupils across the country is 99.26 million; the number of junior school student is 50.67 million; the number of senior high school student is 46.87 million. If 30% of the monthly consumption amount of each child is educational spending, the market prospects of primary and secondary school training market is CNY tens of billions even hundreds of billions. Driven by the huge market demand and development space, many venture capital firms and angel funds have been quietly involved in primary and secondary schools training market. But it is this huge educational spending that promotes the birth and prosperity of the industry.
One-to-one personalized education has been popular in China’s first-tier cities. With a general increase of the number of high-income families and the increase of demand for personalized coaching program, personalized education has become more sophisticated in China’s first-tier cities, such as Beijing, Shanghai, Guangzhou and Shenzhen. But the second-and third-tier cities are still full of opportunities. Many students and parents have urgent needs for personalized education to improve the academic performance of children, solving the child's learning problems. One-to-one personalized education in the second and third tier cities will develop at a compound growth rate of more than 20% in the following five years.
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