Friday, March 29, 2013

The incredible success of New Oriental school a foreign language school

New Oriental School is a private language teaching school. Opened around year 2005 by two Chinese people who came back from United-States where they studied became a reference all over China.

The reasons of success?

In 2005, English teachings methods were not adapted to a Chinese public.
Unfortunately I don't know exactly the reason of the success of New Oriental school. Here are a few tracks:

  • The price of the class is fairly affordable: classes gather an important number of students
  • Teachings are fun: I heard that one of the business partner is very good at dancing. He dances to teach English! Dancing, games, are used to stimulate students. Teachers are chosent according to their abilities to play games and entertain students.
  • Repetition: students repeat in groups sentences from the teacher. This method suits well Chinese students
  • Reduced working costs: In order to reduce its costs, the school seldom use foreign teachers. They would rather recruit Chinese teachers at less cost and as able to teach. Still the school must show some foreigners for the school image. For a 20 hours course, a foreign teacher will teach 2 hours. The foreign teacher come and go from one school to the next.
  • The foreign teach is paid under the counter. This is a common practice for a language school in China. It is difficult for a school to obtain legal authorization to recruit a foreigner and provide him a working visa. The school should have a minimum size, be old enough (I believe that the school should be open at least for one year).
  • New Oriental benefit from its reputation. It is a mass phenomenum. Chinese people want to buy and consumme what is famous. New Oriental school is the the only foreign languages teachings school on the stock market! 
  • New oriental school developed its own languages teachings books with games, drawings... Sell its books to customers is also another income

New Oriental School franchised its concept. In Changsha there must be at least 25 outlets!
The school is so famous that it attracts customers from its brand. Chinese people are sensitive to the brand reputation. New Oriental School is so famous that many university students dream to work there one day as a teacher.

Brand diversification: teaching English to students

The chain use its brand reputation to diversify its offer.

It creates Pop Kids: English school for children.
Teaching English to kids from 3 to 4 years old is a very profitable market. Parents are willing to pay whatever is required for their children to succeed. English is a core subject in Chinese studies. If you get a good grade at university entrance exam "Gaokao" you can enter a famous university and get a better job.

For New Oriental school, teaching foreign languages to children is profitable:

  • The school premises are divided between New Oriental school and Pop kids. Thus the school can attract new customers without paying another rent. Young children, teenager, adults study English in the same place
  • The school attracts first small children at Pop Kids then they become loyal customers and study at New Oriental school

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