Albany, NY -- (SBWIRE) -- 11/26/2014 -- As of the end of 2013, China had a total of 198,553 kindergartens, rising 17,302, or 9.5% from 2012. The number of kindergartens there saw annual average expansion of 3,637 during 2003-2009 and 16,044 during 2010-2013. In the year 2013, the country’s new entrants to kindergarten amounted to 19,700,271, an increase of 581,117 or 3.0% over the last year; enrollments of kindergartens grew by 2,089,279 or 5.7% from 2012 to 38,946,903; gross enrollment rate of 3-year preschool education i.e. the proportion of school-age children (3-5 years old) in kindergartens attained 67.5%, up 3 percentage points from 2012 and 16.6 percentage points against 2009.

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In China, private kindergartens developed faster than public ones in recent years. By the end of 2013, there were 133,451 private kindergartens, a jump of 8,813 or 7.1% from 2012, accounting for 67.2% of the total number of kindergartens nationwide. 9,079,575 new entrants and 19,902,536 enrollments were recorded by private kindergartens in 2013, making up 46.1% and 51.1% of that of kindergartens all over the country.

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By province or municipality, due to differences in factors like economy, population, society and culture, a fairly large gap exists as concerns the development level of preschool education. By the end of 2013, top 5 provinces that had the largest number of kindergartens were Shandong, Henan, Guangdong, Hunan and Sichuan with 18,528, 14,485, 13,793, 12,236 and 11,759 kindergartens, accounting for 9.3%, 7.3%, 6.9%, 6.2% and 5.9% of the country’s total, respectively. However, seen from the gross enrollment rate of 3-year preschool education, the top five in 2013 were Shanghai, Zhejiang, Jiangsu, Fujian and Guangdong – mainly economically developed eastern regions.

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With respect to education institution, private preschool education institutions in China include Etonkids, Golden Kids International School, Kid Castle, R.Y.B, Golden Cradle, etc, of which Etonkids and Golden Kids International School brand themselves as high-end providers. As far as business model is concerned, Etonkids adopts the model of direct operation, and Golden Kids International School employs a combined model of direct operation and holding venture. Striving for quality of education, the number of these two companies’ kindergartens is less than 50 each, with them mainly distributed in first-tire cities.

China’s preschool education industry will maintain a momentum of rapid growth. The problem of “kindergarten crunch” and expensive access to kindergarten won’t be fully solved in the short run, yet central government and governments at all levels will strongly support the development of preschool education, and counties will carry out a new round of “three year (2014-2016) action plan”. From the prospective of population, gross enrollment rate of 3-year preschool education was 67.5% in 2013, with remaining 32.5% of school-age children still being unable to attend kindergarten. Meanwhile, with a gradual opening of a two-child per family policy, every year will see an addition of 2 million infants over the next five years. Seen from consumption environment, due to improvement in income level of Chinese residents, parents will invest more in children's education and pursue high-quality preschool education.

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China Education and Training Industry Report, 2014-2017

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In 2013-2014, China education and training industry is characterized as follows:

There are many education and training institutions but few large ones.
As of the end of 2013, China had boasted a total of 112,300 education & training institutions but few of them could achieve annual revenue of more than RMB1 billion. The companies with higher proceeds consist of New Oriental Education & Technology Group, Inc., Xueda Education, TAL Education Group, etc., and the three’s revenue in 2013 was respectively up to USD1.055 billion (RMB6.437 billion), USD347 million (RMB2.116 billion), and USD287 million (RMB1.764 billion). The overwhelm majority of companies sees their annual revenue of less than RMB1 billion.

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Competition pricks up, and the training institutions with weak comprehensive strength are merged or exited the market.
During 2003-2013, the number of education & training institutions in China fell from 230,600 to 112,300, a sharp drop of 51.3%. It is worth noticing that large training organizations with better quality of training activities and more competitive strength established well-known brands and got highly recognized among consumers and in the market, thus ceaselessly expanding the learning centers, take example for Xueda education whose learning centers rose from 32 in 2007 to 462 in the first half of 2014.

China Online Education Industry Report, 2014-2017

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The Chinese online education market attracted the inrush of huge capital in 2013-2014, as Internet firms, offline education training institutions, investment companies and startups continued their expansion in online education. In 2014, China online education industry is characterized as follows:

Online education is still an investment hot spot.
In 2013, 51 investment events took place in China online education industry, 44 of which were venture investments. And the figure rose to 54 during Jan.-Aug, 2014, 10 of which (including acquisitions) occurred in Aug. 2014 alone, equaling total investment of over RMB 1 billion.

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Education and teaching models are further improved.
Koolearn’s live classroom channel went online in Feb. 2014; Hujiang.com introduced mobile live classroom “CCTalk” in Aug. 2014; Super Class introduces teaching elements like film & TV, recreation and sports and game & animation, and adopts teaching model of “Flipped Classroom”.

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