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Wall Street and EF in China expansion

Signalling a surge in demand for English in China, two of English language training’s biggest players have announced major expansion plans in the country this year, citing figures of up to 300 million English language learners in the country.
January 9 2012
2 Min Read

Signalling a surge in demand for English in China, two of English language training’s biggest players have announced major expansion plans in China this year.

US-based Wall Street English (WSE), which is owned by global conglomerate Pearson, says it plans to open 15 new centres in 2012, taking its total to 70. Meanwhile, EF, which has nearly 150 centres in more than 50 cities, plans to open 200 new premises.

Talking to China Daily, David Kedwards, CEO of WSE’s international division said: “In the past, people came to us and wanted to improve their English immediately because they worked in foreign enterprises or had business with foreigners.

“Students come here to learn English as an investment in themselves”

Now we have noticed many of our students come here without such direct need, but to learn English as an investment in themselves.”

Chen Ming, vice-president for Asia Pacific at EF, said: “We are still looking forward to the huge potential in China. There are 250 million to 300 million Chinese people who are learning English, so it is important for us to continually improve on quality and reach more customers.”

Demand for English is rising rapidly in China, with the number of people seeking training  in 2011 estimated to be as high as 400 million by some sources. While WSE and EF are among the biggest players, their client base is comparatively small – WSE has just 50,000 students in China – suggesting huge scope for growth.

Four deals for Pearson

Such demand has turned China into a hotbed of ELT activity in recent years. Other big deals include Pearson’s acquisition in December of Beijing-based Global Education & Technology Group, a leading provider of educational courses and the IELTS test. The $155 million deal was Pearson’s fourth Chinese acquisition since 2009.

US media giant Disney has also made inroads since its 2009 launch and now runs 30 centres teaching English to young children across the country.

Meten English says it plans to become a national brand in three to five years

While much of the action has come from multinationals, homegrown companies are catching up. Meten English, which is popular in the South of China, says it plans to become a national brand in the next three to five years, growing from 25 centres to 90 nationwide. It currently has more than 20,000 students.

Meten vice-president, Si Donglin, says the company is looking for possible new partners and even considering going public. “The number of our students grows by 20 to 30 per cent each year. We always think of what our customers want. If customers in other big cities grow faster, we will focus there,” said Donglin.

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