The First Vocational Training Summit
3month30OnFESCOThe first Professional Training Summit, organized by (the organizer), was successfully held in Chaoyang District, Beijing. This conference was guided by the Human Resources and Social Security Department of Chaoyang District, Beijing.
As the employment market's demand for talent becomes more specialized and segmented, the vocational training market is embracing new development opportunities. The conference, themed 'New Development, New Opportunities, New Momentum', interpreted policies, exchanged experiences, and signed cooperation agreements. Participants included those from Douyin's mass certification...360Group,FESCOTop enterprises in professional training fields such as Quantum's Song, technician colleges, private vocational skill training institutions, and government departments300Leading experts from various fields, industry elites, and talented individuals gathered together to discuss and plan for new trends in the development of the vocational training industry and a new future of cooperation.
Frost & SullivanFrost & SullivanLiu Wenjun, Executive Director of Frost & Sullivan Greater China, was invited to attend this conference and delivered a speech on 'Investment Development Trends in China's Vocational Education and Training Industry'.
Executive Director, Greater China, Frost & Sullivan Liu Wenjun
2022year5month1The new Vocational Education Law, which came into effect on this day, clarifies the modern vocational education system, which is defined as 'emphasizing both vocational school education and vocational training, integrating vocational education with general education, ensuring effective connectivity between different levels of vocational education, and serving lifelong learning for all citizens.' Liu Wenjun stated that the new era background has endowed modern vocational education with a new mission and positioning. The new Vocational Education Law plays an important role in reversing the long-standing social prejudice against vocational education and alleviating educational anxiety caused by the diversion between vocational and general education.
Source: Analysis by Frost & Sullivan
Data shows that the scale of China's vocational education market has grown from2016year5,167Yuan, increasing to2021year7,811100 million yuan, with an average annual compound growth rate8.6%The growth rate is significantly increasing; It is expected that the vocational education market in China will be2025The annual scale exceeded one trillion, and in2026Annual achievement10,979yuan, 2021Year to2026The average annual compound growth rate over the five years of6.5%Compared with academic vocational education, Non-degree vocational education (vocational training) accounts for about30%However, its growth is more pronounced. 2020The market scale of annual vocational training has exceeded2,000yuan,2016Year-end2021The average annual compound growth rate over the five years of the year reached double digits.
Liu Wenjun pointed out that the rapid development of the vocational training market is driven by favorable policies and social development, among other factors. On one hand, the state has gradually placed more emphasis on vocational training, recognizing its status through legislation. On the other hand, with the improvement of national living standards, the acceptance of re-employment and lifelong education has also increased. Consequently, spending on training has risen. Moreover, due to the tightening employment situation in recent years in China, the number of college graduates has been increasing year by year, and the unemployment rate has continued to climb under the impact of the epidemic, increasing employment pressure and further releasing the demand for vocational training among the people.
According to a Frost & Sullivan study, the vocational training market in China is characterized by diversification, with vocational and technical training as the main body of vocational education accounting for nearly70%share. For the vocational education needs of college students and highly educated individuals, vocational exam training is also an important part that cannot be ignored.
Source: Analysis by Frost & Sullivan
Looking at the capital market as a whole, since2017Since the beginning of the year, investment and financing in the education industry have gradually cooled down and continued to break through their lowest points.2022The number of financing events in the education industry decreased further to121Since, compared to the peak period2016Decreased by [X]% annually86%. The enthusiasm for industry financing has continued to decline, and rationality and prudence have become the main themes for capital markets in investing and financing in the education sector.
"Vocational education and vocational training have benefited from favorable policies, with active investment and financing increasing in recent years, making them a popular track favored by capital in the entire education industry." Liu Wenjun further explained,2022In the year, there were a total of63For online financing, the amount of a single financing can range from several million to several hundred million RMB, and the number of vocational education investment and financing transactions is higher.2021Throughout the year, The number of investment and financing events has been growing steadily.
Source: Analysis by Frost & Sullivan
In terms of investment and financing amounts, 2022In [year], the total financing amount for the vocational education industry was approximately23.1RMB 10 billion, and2021Compared with last year, the financing amount has decreased70%The single financing amount is mainly in the tens of millions, with a considerable portion of early-stage financings being only in the millions.
From the perspective of investment and financing rounds, Investment and financing events in the vocational education industry are mainly concentrated in the angel round and seed round, focusing on early-stage projects.BPrevious financing rounds (Angel round/Seed round,Pre-AtillA+The number of financing events for (cycles)30Pens, accounting for nearly half of the annual investment and financing events.2021Compared with last year, the financing rounds for vocational educationAPreviously, early-stage financing, which mainly involved private placements, has gradually shifted towards strategic investment and financing. The proportion of strategic investment and financing is steadily increasing, andPre-AtillA+The number of sessions was relatively flat.
Source: Analysis by Frost & Sullivan
From a professional perspective, In the past two years, the primary market investment and financing layout in the vocational education industry has focused on professional vertical fields (such as artificial intelligence, medicine, information technology, etc.) with vocational skills or technical training service providers. Strategic investments andIPO listingInvestment and financing events with higher amounts mostly occur in content or technology service platforms, with most targets having internet or technological attributes. In contrast, mergers and acquisitions in the vocational education industry typically involve vocational training schools or institutions, as well as offline vocational education schools with substantial physical assets or online vocational education service platforms.
Liu Wenjun stated that, affected by the overall activity of the capital market, vocational education and vocational training companies that have entered the capital market in the past two years have seen a vastly different scale of fundraising compared to previous years. Moreover, due to the combined effects of the pandemic and regulatory policies, the stock prices in the education sector have fluctuated significantly. "2023The annual listing of Pinknote and Quantum Education, which entered the capital market, respectively set new market values for the vocational education sector in Hong Kong and US stocks listed on Chinese exchanges. From a valuation perspective,AThe stock market has a greater valuation advantage for the vocational education sector, while the Hong Kong stock market provides a commendable valuation for vocational training. ' ' Liu Wenjun said.
Finally, Liu Wenjun summarized3What are the development trends of modern vocational education in China:
1onlineization
"Internet+The 'Education' model is gradually expanding. Leveraging its technological attributes for flexibility, high cost-effectiveness, and rich resources, it can provide teaching and training services to students more efficiently.
2Branding and high quality
Major training institutions are vigorously developing branded and high-quality content to enhance their visibility and recognition. By increasing investment in curriculum research and development, forming strong teaching teams, and expanding and innovating product forms, they aim to break through the 'homogenization' phenomenon and stand out in fierce competition.
3) School-Enterprise Cooperation and Industry-Education Integration
School-enterprise cooperation and industry-education integration are the most strategic development trends in the industry, which can effectively assist students with employment. By introducing the most advanced methodologies and up-to-date practical skills from various industries, combined with the practical experience of industry veterans, they can bridge the last mile of education and training, truly solving employment problems.
