joint market development with agents in china – a third party perspective
TRANSCRIPT
Joint Market DevelopmentAgents in China
with
– a Third Party Perspective
By Cecilia Fan, Publisher
Quick Facts About China’s Post-secondary Education Market (I)
• 45 million high school students (includingVET) enrolled (31,000 schools)
7 million university students graduate each
year
2000 universities, independent institutes
and VET providers
•
•
• 23 provinces, 5 autonomous regions,direct-managed municipal cities
More than 400,000 Chinese students
studying abroad each year
More than 1000 joint programs and
institutes approved by the MOE
4
•
•
Quick Facts About China’s Post-secondary Education Market (II) Pathway/foundation market: US$1.6 billion
(RMB9 billion)
Language, Exam and Study Abroad
Training Market: US$5 billion (RMB30
billion)Commission to agents: US$800 million
Chinese students spend abroad:
US $40 billion (15% in the US)
350,000 students returned to China to
seek employment in 2013
•
•
••
•
Foreign Education Providers in– Objectives in China
China
••
Student recruitment for foreign campus
Joint programs and campus delivery
programs in China
Credit transfer, articulation and pathway
foundation programs
Student and faculty exchanges Joint
R&D and publications Internship and
employment relations Chinese
alumni relations
•
••
•
•
Quick Facts about Agents in China (I)
• More than 400 fully licensed agents inChina
••
•
•
2000 +
Agents
Agents
Agents
agents covering China marketsize
geographical coverage
nature (agents vs.
vary
vary
vary
in
in
in
education provider)Agents vary in revenue structure
B2C agents vs. B2B agents
Agents’ online and offline recruiting
••
•
Quick Facts about Agents in China (II)
• Large student recruitment agencies can representover 100 universities and high schools
Large student recruitment agencies can send
thousands of students to one single study
destination, and hundreds of students to one single
university
Agents can spent millions of USD on marketing
There are different models of business operations
and networks among agents in China
The landscape of recruitment has shifted to focus
on digital recruitment, with agents now receiving
more and more enquiries online
•
••
•
Typical Barriers Faced By Foreign
Education Providers in
At Entry Stage:
China
••
•
LimitedLimited
Limited
knowledge of the China market
resources to cover China
marketing budget
At•
•
•
•
Interim Stages:Low brand awareness
Difficulties satisfying recruitment
Student quality issuestargets
Stronger competition from other study destinationsuniversities
Difficulty evaluating options
Over-reliance on third parties
and
••
Tips For Selecting and Working withAgents in China (I)
Understand what your institution wants to achieve and
clarify this with your potential agents
Clearly identify your institution’s current difficulties and
determine whether these issues should be resolved
internally or with the help of agents
•
•
• Understand who your agents are and what they wantof their relationship with your institution
out
Note that:
• Who you think you are is different from how themarket views you
What you want to achieve is different from what your
agents want to achieve
•
Tips For Selecting and Working withAgents in China (II)
••
What are yourWhat are your
How do you fit
agents’ standard practices?agents’ short-term and medium term goals?
into their goals?
• What motivates your agents? How do they motive their front
line staff to promote your university? What have you offered
to keep their interest?
Why did you select each of your agents? How does their
combined coverage fulfill your needs?
If you are selecting agents for both marketing and recruiting
purposes, how do you set appropriate evaluation criteria?
Have you benchmarked your results against other
universities?
•
•
Strengths of Agents in China (I)
Have existing, established operations and networks in
China
Can cover second- and third-tier cities quickly and can
provide direct consultation
Can provide additional consultation services such as
information about visas, immigration policy, etc.Can combine their marketing budgets to run online
and off-line promotions more effectively than individual
universities (to a certain extent)
Can provide multiple choices to student applicants
Agents are often responsible for implementation once
an interested party wants to become an applicant
•
•
•
•
••
Strengths and Limitations of Agents inChina (II)
Agents have established operations and networks inChina, and can cover a wider area more quickly
••
•
Working with agents gives you a quick kick start
Conducting recruiting in china maybe more cost effective
Agents represent multiple universities and multiple study
destinations
Commissions are attractive to agents, but efficient
cooperation with overseas institutions is also important
Agents’ networks and coverage often do not completely
align with those of your institution
•
•
Strengths and Limitations of
Agents in China (II)
Agents can combine their marketing budgets to run online andoff-line promotions more effectively than individual universities
(to a certain extent)
• Your institution may be able to leverage agencies’media and marketing contacts
However, education providers need to be clear that
agencies’ marketing budget is first to promote their
brand, not your brand
Share your institution’s marketing strategy and align
with your agents’ marketing activities to maximize
output and avoid unclear messages
•
• it
• Take responsibility to establish your institution’s brandin partnership with agents.
CHE’s View of the Relationship betweenEducation Providers and Agents (I)
Agents:
• Consumers are happy to work with agents (particularly
prospective undergraduates and high school students)
Agents can influence the market to a certain extent but
increased transparency is reducing this influence
Some well-established agents have accumulated in-
market experience and large client bases
Agents are actively looking for ways to evolve and new
agents are working to increase their market shareFirst-tier city consumers rely less on local agents;
second- and third-tier cities are still reliant on agents.
•
•
•
•
CHE’s View of the Relationship betweenEducation Providers and Agents (II)
Foreign Education Providers:
••
Are often disadvantaged during market entry phase
Education providers with existing partnerships reduce
their reliance on agents over time
Education providers with higher rankings and/or more
marketing also reducing their reliance on agents over
time
•
CHE’s View of the Relationship betweenEducation Providers and Agents (III)
Common mistakes when working with agents
• Lack of clear China objectives internally, resulting in
management of agencies becoming a silo operation
within the university
A segregated implementation team results in
underutilized channels and resources
Difficulties making decisions when there are short-
term benefits vs. long-term lossesLack of a systematic evaluation system
Not taking full responsibility for brand promotion and
marketing
•
•
••
Key Take-Aways forForeign Education Providers
• Understand who your agents are and what kind of networks
they have in their distribution and promotional channels
Use agents that match your needs and fill with the gaps in
your knowledge and resources
Make selecting, working with and evaluating agents part of
your overall China strategy
Share part of your China strategy with agents, be open to
their input and verify their suggestions
Take responsibility for marketing in China. This should not be
solely your agents’ responsibilities.
Personal relationships are important but a matrix approach is
crucial in China
•
•
•
•
•
Research | Analysis | Advisory
www.chinahighereducation.org