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Education

Quest for career success
drives steep value rise
 
With a rise of 46 percent, education, along with travel agencies, led the 20 categories in the BrandZÔ Top 100 Most Valuable Chinese Brands 2017 in year-on-year value increase.
 
The category rose steeply, following a modest increase a year ago, as Chinese consumers continued to invest in education to advance in their careers, improve prospects for their children, and generally become better prepared to participate in the Chinese and global economies. The end of the one-china policy should help ensure future category growth.
 
China’s educational system, with its focus on entrance exams at each level of schooling, adds pressure to succeed that also drives the education category, which includes two brands, New Oriental and Xueersi.
 
New Oriental derives almost 85 percent of its revenue from language and test preparation courses, often for overseas exams. Enrollment rose 42 percent to 2.6 million, year-on- year, in the first six months of fiscal year 2017, and the brand operated 789 schools and learning centers in 58 cities.
 
Xueersi, focuses on after school tutoring for grades K-12. For the first nine months of its fiscal year 2017, which ended November 30, 2016, Tal increased enrollment almost 71 percent to nearly 2.6 million, and it added locations, ending the period with 474 learning centers in 27 cities.
 
The brand emphasized small classes and invested in expanding online and mobile services to coordinate an online and offline (O2O) presence. In 2015, Xueersi acquired an education company named First Leap, which it will run as a separate division specializing in teaching various academic subjects in English.