Research on the Development Status and Future Trends of Early Education and Childcare Industry in China

Abstract

Through reading plentiful articles, the author first explicates the definition of early childhood education. Specifically, this article divides it into early education and childcare, then clarifies the differences and commonalities between the two in the process of analysis. The author takes the theoretical framework of supply and demand as the underlying logic to study the current situation and future trend of early education and childcare. On the demand side, this paper interprets the impact of family structure and parents’ awareness on the industries and estimates the market size of China's early education and childcare industry from 2015 to 2025 by calculating school-age population, unit price and market-penetration rate. On the supply side, by conducting a statistical analysis from the perspective of market concentration, the writer establishes a single-store financial model of direct early education and childcare institutions and draws a revenue cost breakdown chart of early education and childcare centers. Finally, this paper carries out a typical case analysis using My GYM, a leading early education enterprise, analyzes from the store scale, market expansion, the development of online education, etc. to make an in-depth discussion.