Growing Number of Kindergarten Franchises to Drive Revenues of China Preschool Industry: Ken Research Essay

The preschool market is the fastest growing sector of the education industry in China presently. Over the span of last seven years, the industry has grown at an annualized rate of 10. 3% from 2006. The industry showcased increasing revenues in the period of 2006-2012, owing to the inflating tuition fees charged by the growing number of the private kindergartens. The enrollment figures have also shown a progressive trend throughout the years, instigated by the growing market presence and awareness about the importance of the pre-primary education amongst masses. Kindergartens in China are responsible for providing both childcare and preschool education to the children aged 3-6 years. The transition of Chinese economy from publicly administered to market-run has put a great impact on the kindergarten market of the country. Private sector funded kindergartens have gained increasing hold over the overall market and had accounted for a dominant share in 2012. Rural areas of China host the maximum of the kindergartens which are primarily run by the education department or are publicly funded. However, with a rising number of private entities adopting the franchised business model to operate in the underpenetrated market of China preschool industry, the urban areas have showcased an increasing share of enrollments over the years. The preschool industry of China is characterized by a high degree of fragmentation with increasing number of players implementing acquisition expansion strategies to build on their market shares. RYB Education, Oriental BabyCare, Gymboree Play and Music are some of the chief brand names operating in the market. Other emerging players include Noah Education holdings, Beijing Hongying Education group, I Love Gym etc. A significant number of publicly led kindergartens also are prominent in China which includes players such as Huijia Kindergarten and Hong Huanlan Education Group. Increasing number of working mothers has led to an increasing demand for the kindergartens in the country. Additionally, the large population base of the country promises an increasing cohort of children aged under- six, which presents huge opportunities for the foreign and domestic investors to attain growing levels of revenues in coming years. Additionally, the talent-based trainings provided in the kindergartens of China, has also welcomed a growing number of children to participate in the preschool programs. However, the trend of bilingual kindergartens is being most prominently witnessed in this sector, stressing the growing importance of early language training, as preferred by parents. The report â€Å"China Pre-primary Education and Childcare Industry Outlook to 2017† provides detailed overview on the preschool industry from various perspectives. The report encloses a comprehensive analysis of the various segments of the market reflecting the present scenario and future growth affected by changing industry dynamics in coming years. Additionally, the report also entails information about the government rules and policies, rational analysis of the macroeconomic factors, along with the competitive landscape of the pre-primary education and childcare industry. The report will help industry consultants, companies and other stakeholders to align their market centric strategies according to ongoing and expected trends in future. For more information on the industry research report please refer to the below mentioned link: http://www. kenresearch. com/education/pre-school-education/china-pre-primary-education-market-research-report/401-99. html.