a presentation for icef beijing attendees...• destination countries wax and wane in popularity •...

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China Market Update: Good News / Bad News

A presentation for ICEF Beijing attendees

The China Market Update: Good News / Bad News

Who is Grok?

What is the state of the China study abroad market?

How can a market grow and, at the same time, become more difficult?

From our perspective, what are institutional success factors?

Who is Grok?

Copyright Grok Global Services © 3

Introduction to Grok• Grok specializes in helping education institutions to engage globally

• We are professional services firm• Our only source of income is professional services fees from our client institutions

• All things international education

Did you know…The word “grok”

was coined by Robert Heinlein in his novel

Stranger in a Strange Land. It means to

understand something so thoroughly that you

become a part of it. Our mission is to help institutions to

grok global markets.

Our services

servicestailored to

international education

An array ofGlobal MarketingGrok’s marketing service helps institutions with building brand in global markets, engaging key audiences via social media, and localized campaign strategy and execution.

Institutional PartnershipsGrok helps with the increasingly important priority of establishing partnerships with peer institutions, industry or government.

Program OfficeWith Program Office, institutions can deploy staff in-markets that are 100% dedicated to the institution’s recruitment and partnership goals

Research and AdvisoryGrok assists institutions with strategic projects including market roadmap development, competitive evaluation, viability assessment, international strategy

Global AccessGlobal Access enables institutions to recruit from markets that have not yet reached the volume to justify traditional recruitment methods.

Regional Gateway HubsGrok enables institutions to have an independent office, with its own address and branding, under Grok’s local corporate entities, administered by Grok.

A diversity of clients•Since 2005, we have worked with over 100 institutions, and 50 government entities and corporations.

•Range from globally ranked, large universities to small colleges to schools.

•US, Canada, UK/Europe, Australia and New Zealand

Our experience serving many diverse clients in locations across Asia gives us a unique

view into the dynamics of our delivery markets, and best practices.

Grok maintains offices in the world’s key international education markets. We enable institutions to deploy teams to any and all relevant markets, and promote themselves in a consistent and legally compliant way, with the convenience of unified management, streamlined invoicing, and a simplified legal process.

Our global footprint enables client institutions to quickly respond to market demands and flexibly shift investments over time to where they are most needed.

Grok Global

China

Malaysia

Vietnam

India

Beijing, Shanghai, Guangzhou

Kuala Lumpur

Ho Chi Minh City

Delhi, Mumbai, Bangalore, Chennai

What is the state of the China study abroad market?

Copyright Grok Global Services © 8

Social, political, economic dynamics• Politics

• US – China trade conflicts• Incidents of student protestors at Australian and New Zealand university campuses• Immigration and study visa policy changes

• Safety• Economics

• Changing labor market• The weakening RMB• Chinese economy growing, but more slowly

China Study Abroad Market:Basic Market Dynamics

• China remains the world’s largest market for foreign students

• Despite its size, China is still the third fastest growing student recruitment market after India and Nigeria

• About 90% of outbound Chinese students in2018 were self-funded

Chinese Ministry of Education

Number of Chinese Students Studying Abroad

China Study Abroad Market:Where Chinese Students Go

• English-speaking countries remain popular, with theU.S. and U.K sharing about half of the market.

• Asian universities are becoming increasingly active

New Oriental Vision Overseas

Chinese Students Destination Countries

China Study Abroad Market:Where Chinese Students Intend to Go

• Comparing the 2019 survey results to previousyears, there are some indications onstudents‘ shifted interests:

• Small downward shifts of interest in the U.S. • Interest in the U.K. has grown significantly


Countries/Regions Chinese Students Intend to Go

China Study Abroad Market:What Influences Decision-Making


When choosing a study-abroad destination:• Quality of education remains the primary

factor.• Being safe and welcoming have become

increasingly important for Chinese students.• Cost is beginning to play a bigger role in

decision-making• Foreign study becomes a mainstream

middle-class activity• The economy is slowing down• The renminbi is weak

Top 10 Decision-Making Factors

China Study Abroad Market:Which Fields Chinese Students Study

EIC, Report on the Intent of Chinese Students to Study Abroad

Chinese Students’ Intended Fields of Study

Chinese Students in the U.S.

Number of Chinese Students Studying in the U.S. Chinese Students’ Levels of Study in the U.S.

Institute of International Education (IIE)

How can a market grow and, at the same time, become

more difficult?The competitive reality in China

The agent channel is important in China• Chinese agencies charge families and, if possible, the institution.

• In China, the family is the agent’s client. • To the agent, the institution is more like the “product”.

• National agents have 25-50 retail offices across the country.• Agency leadership and front line counsellors key to your success

Competition for agency support is huge• More and more institutions would like agencies to help them recruit• Institutions are increasing investments to better support their recruitment partners• Pathway providers are a growing challenge for institutions in the agency channel

• Amalgamate demand, disproportionate supports and incentives • Pathways may become even fiercer competitors in the agencies as they too face

competitive pressures

Chinese families are becoming more sophisticated.• Families are becoming more independent minded

• Walk in to agency office with their own ideas

• Independently investigate counselor recommendations

• Independently vet their offers

Agencies, themselves, face growing challenges• The agency business in China is facing difficulties

• Staffing turnover• Very high competition for the family• Reduction in “retail” demand

• Trends• Service extension• Shifting business model away from “retail”

• Dedicated pipelines of students• B2B agencies• Online agencies

• Agencies continue to be important in the education landscape, but they are changing

• So… given all these difficulties, can your institution thrive in the agency channel?

• Maybe…

Institutional success factorsBest practices

Top Institution

Institution#10

Institution#30

Institution#40

Institution#20

Institution#50

Institution#80

Institution#90

Institution#101

Ranked from most to least productive institutions# of

applications submitted to the institution

These institutions are not always the most highly ranked, the most famous, nor the highest commission payers. So, what distinguishes them from the others?

Institution#60

Institution#70

Competitive practices: Understand where you fit in the agency portfolio

• Agents need a small number of viable options for the most common categories of student.

• The institutions who, for whatever reason, occupy any of these slots are the institutions that are actively promoted.

• You are competing to occupy one or more of these slots. So many institutions have entered China, slots are mostly full

• What are your options?

A conceptual model: How an agency decides who to promote

Displace an institution on the list

Be “top of mind” with certain counsellors

Increase the number of “walk in” requests

Chinese families are becoming more sophisticated.

Build brand and reputation to generate demand and increase # of walk in requests

Create digital assets targeted at China (e.g. Chinese websites). Shape search engine results.

Provide opportunities for interaction through locally deployed staff, Chinese social media engagement, and doing yield activities. Understand your competitors, and do better at differentiating yourself

• Families are becoming more independent minded

• Walk in to agency office with their own ideas

• Independently investigate counselor recommendations

• Independently vet their offers

Competitive practices: Understand your specific place in the education ecosystem• Better institutional differentiation.

• Be specific about what makes you unique• Provide some form of third party support if possible

• Know and articulate: Who is your student?• Be able to train the agency counselor to position your institution competitively

• Honest, ethical and data based• Competitive comparison is an important aspect of the counselor’s service to the family• Do you want to help shape how you are characterized against competitors?

• You can align your institution’s marketing to support that competitive positioning and need not mention names

We are friendlyOur campus is greenWe have small classesXXX

Not for publication

Your private analysis…

Competitive practices: Be more aware of your audience• Agency counselors sit through presentations every day• Be memorable. Be masterful.• Try to be a little focused on the Counselor and student (rather than just “U”

focused)• “Counselors successfully recommend our university to students and families

who are cost conscious AND moderate academic performers..”• Hit the important details but the lesser details can be conveyed via a one page

agency cheat sheet• What are you seven points?• Bring stimulants – snacks, coffee, small gifts

• Our University was founded in 1967• Our University campus map looks like this• Our University has a Chinese restaurant• Our University….XXX

Competitive practices: Know and support your supporters• Partner with an array of agencies• Smaller set of “tier one” partners on whom you concentrate support• Visit your tier 1 partners multiple times a year (typically four or five)

• Staged communication• Info to help counselors sell • Info that gives counselors domain knowledge• Good collateral

• Attend their fairs and otherwise support their business

First visit: in depth introductionSecond visit: review + focus on costs & scholarships + in depth about AeronauticalThird visit: review + focus on campus life + in depth about Data Science IndustryFourth visit: review + focus on new student info + in depth about Co-op

Competitive practices: International operations• The correct entrance requirements for your competitive position• Broaden your market by:

• Accepting a broader array of credentials (e.g. gaokao, huikao, college diplomas, foundation years, HND)

• Streamline decision making around credential evaluation• Crisp, consistent decisions around admissions• Become data driven - Manage your recruitment data and know your pipeline

• Consider in-country staff to provide your recruitment partners and students with local support• Hire a professional• In-country recruiter: 80 to 130 ”visits” per year, typically 12 to 15 cities• This will require your active management and involvement

Competitive practices: Give yourself the needed runway• Be sure that you, and your leadership, understand that this takes

time• It can take two to three years before an agency channel becomes

productive, even with intensive support

The future?• Destination countries wax and wane in popularity• China’s economy is slowing, not shrinking

• May negatively OR positively impact study abroad market• China will remain the #1 sending country for a while• Agencies will continue to play an important role in the China landscape but they will continue

to evolve in response to changing market conditions. How you collaborate with agencies may need to evolve as well.

• Changing education landscape in China• Foreign study in China: Branch campuses, joint institutes, joint programs• Improved ranking of domestic institutions• Dramatic growth in the number of international high schools, and international high school

programs• Growth in the number of in-country ”pathway” off-plan equivalent programs: Foundation,

HND, language programs, etc

CHINA MALAYSIAINDIA USAVIETNAM INDONESIA

Thank you!

a presentation for icef beijing attendees...• destination countries wax and wane in popularity •...

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