Economic Observer Online reporter Wu Qiuting

With the arrival of the second-child dividend, the early childhood education industry is welcoming an unprecedented dividend period.

On November 10th, the first International Early Childhood Education Summit, hosted by the Expert Advisory Committee of the China Academy of Management Sciences and hosted by GYMBABY Sports Baby and Early Education Times, was held in Beijing.

The theme of the summit was "Exploration, Innovation, Smart Extension, and the Future", and it will be discussed around "China's Early Childhood Education Development in a Global Perspective." At the meeting, early childhood and early education experts at home and abroad discussed the key points, difficulties and breakthroughs of the industry development, as well as the development trend of early education in China, and explored the driving force of industry transformation and development.

In the face of escalating market demand and decentralized industry status, the direction of personalized and standardized industry development is becoming a common consensus among the industry. After nearly 30 years of development, the early childhood education industry with a market size of nearly 200 billion faces the test of transformation and upgrading.

Demographic and policy dividends

After the "second child" policy was fully liberalized, the birth rate of China has increased. According to statistics from the Health Planning Commission, the number of births in China reached 18.46 million in 2016, an increase of 11.5% year-on-year, and the growth rate was about 13 percentage points higher than that in 2015. The early childhood education industry is welcoming the demographic dividend.

In addition, the new "People's Promotion Law", which began to be implemented on September 1, clarifies the separation of private education and compulsory education, and is widely regarded by industry insiders as an opportunity for development of the early childhood education industry.

In addition to policy orientation, the greater thrust of the early childhood education industry comes from the general trend of China's family education consumption upgrade, and the shift of a new generation of parental education concepts after 70, 80, and even 90, and the emphasis on early childhood education.

According to the statistics of the Prospective Industry Research Institute, the current annual growth rate of household education consumption in China is 20%, and childcare expenditure has accounted for 23% of the average income of Chinese households. 56.5% of parents ranked their children's education investment in the first place.

Under the combined effect of market demand and policy orientation, early education is becoming a sunrise industry. In 2016, the market size of China's early childhood education reached 195 billion yuan. It is expected to exceed 200 billion in 2017.

The early childhood education industry has also continuously improved in terms of investment climate, industry growth, and return on investment. Since the beginning of this year, the early childhood education industry has set off a boom in investment and financing. According to public information, there were 58 investment and financing events in the primary market of the early childhood education industry in the first half of 2017. As a result, there were 9.6 investment and financing events per month.

At present, early childhood education has been fully developed in first- and second-tier cities, forming an early education service system with community as the radiation range.

Need for transformation and upgrading

Inconsistent with the huge market size and investment and financing booms, the early childhood education industry still faces the development of industry norms and mixed products. In particular, the loopholes in the selection mechanism of preschool education practitioners have sounded the alarm for the early childhood education industry practitioners.

Standardized and personalized industry transformation and upgrading is gradually becoming the consensus of the industry.

At the early childhood education summit, GYMBABY sports baby CEO Chen Hao put forward his own industry advice. She believes that excellent international early education should include an international and rich educational concept, an international talent team construction and operation system, and a strong IP with international capabilities.

At the same time, the Chinese society's cognition of early childhood education also poses new challenges to the transformation and upgrading of the industry. Parents and early childhood education institutions are faced with the problem of how to "scientific cognition" and "personalized care" for children.

China’s early education development has gone through less than 30 years. Compared with parents more than 20 years ago, most of the current young parents have high culture, more information channels, and a focus on understanding and learning parenting concepts. On the other hand, they are becoming more and more anxious about their children's education.

Parent-child education expert Gao Shouyan told the Economic Observer Online that the reasons behind this anxiety status are complex and diverse. The social environment is the dominant factor. For example, the uneven distribution of educational resources between regions and the rising prices of school districts have made parents' mentality unbalanced and unable to do so.

In addition, under the background of the rapid development of information technology, the big news of childcare information. Parents who lack information filtering and screening skills often feel at a loss when faced with conflicting parenting ideas.

In response to this situation, Gao Shouyan believes that the early childhood education industry needs to be transformed and upgraded, and the focus of practitioners' tasks should be changed from the past “change of ideas” to “personalized guidance”. By addressing specific issues in specific parenting scenarios, parents are taught to understand the beliefs behind child behavior and to find the best parenting style for parent-child combinations.

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