Caixin Global: What’s Next For China’s After-School Tutoring Industry?

After the initial shock — shutting down classes, laying off employees and closing offices — education companies in China now face a common question: What do they do next to survive?

There is plenty of room in the sector for new products, said Claudia Wang, a partner in charge of education and training at Oliver Wyman. With the rapid development of society, the abilities required for members of the next generation to enter the workforce may differ greatly from today, while the speed of knowledge updating in schools is often slow, she said.

“What capabilities will our next generation need to compete on the global stage 20 years from now?” Wang asked. “Parents will really love to pay for high-quality education products designed for the future, and the growth potential is very good.”

In addition, local education commissions have a need for education informatization, or use of new communications technologies to advance development. Compared with individual schools, education commissions usually have larger purchase orders and deeper pockets, Wang said.

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