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Unlocking the Mysteries of the Chinese Market, Part I
By Charlene Gaynor, AEP Executive Director
AEP has been telling its members for over a year now that the
Asian market, particularly China, is ripe with opportunities for
educational publishers. During a recent business trip to China,
AEP Executive Director Charlene Gaynor tried to uncover these opportunities
and how you can take advantage of them. This is the first in a
three-part series on the Chinese educational publishing market.
What I found in China is that the economic landscape is undergoing
a massive overhaul as businesses fervently embrace the free market
economy. This reality is reflected in the attitude of People’s
Education Press (PEP), one of the oldest and largest Chinese publishers.
Once the only government-approved textbook publisher, PEP has gone
from100% market-share to 50% in barely 5 years. That’s because
now they share the market with 100 other government-approved publishers.
Zheng Wangquan, a PEP editor-in-chief told me he sees this as a
good thing. Competition raises the quality bar for all publishers,
he says.
A close-up look at China’s changing social and political
landscape was arguably the most riveting aspect of AEP’s
recent business development mission to Beijing and Shanghai earlier
this month. Our 10-person delegation, led by publishing expert
Robert Baensch:
*shared conversation and information with managers, editors, and
marketers from Chinese educational publishing houses;
*met with key officials of the General Administration for Press
and Publications (GAPP), the government agency overseeing the publishing
industry in China; and
*explored the Beijing Book Fair and responded to interest from
publishers, vendors and the Chinese press.
Visits to the monumental sites of The Great Wall, Tianamen Square,
and the Forbidden City grounded me in Chinese culture and tradition.
A final stop in Shanghai revealed a chic and shining city--and
helped me grasp the warp speed at which the “new” China
is emerging.
With so much mystery and hype surrounding the emerging Chinese
market, unearthing the real business opportunities for educational
publishers can be compared to finding the Holy Grail. My first
business mission to China led to no such discovery. However, I
did observe some noteworthy facts to help AEP’s members understand
the Chinese educational publishing industry.
First, in China, I found a country eager to participate in the
world economy and very cognizant of the role education plays in
this mission. Equity is the critical educational issue, fueling
a huge push toward closing the educational gap between rich and
poor areas of the country. In recent years, the education ministry
has been striving to revamp the country's primary and secondary
school curricula, shifting away from lectures and rote learning
to methods that encourage creativity. Chinese publishers are extremely
interested in Western instructional methods like cooperative learning
and technology-enriched curricula. The whole idea of supplemental
materials has a resonance it's never had before.
Second, I also saw that there is a yin and a yang to the opportunities
in the Chinese market.
*China is undergoing political, social, and education reform.
This climate presents opportunity fired by a genuine interest in
Western educational methods and a need for more content.
*Major Chinese publishers have expressed serious interest in licensing
educational content from the U.S., particularly in the areas of
science, mathematics, and instructional theory. For higher ed,
vocational education and technical texts are in demand.
*An identifiable and manageable number of distributors supply
bookstores throughout China. These national distributors carry
a wide range of educational products including English-language
exports.
*A new distribution channel is emerging--private enterprises that
broker curriculum, teacher training, and instructional materials
directly to schools. These private companies represent a potential
new outlet for U.S. exports.
*There is no fast track to the Chinese market, though. Business
opportunities grow out of relationships--relationships that take
a long time to establish and build.
*Sensitive issues such as copyright and royalty protection still
represent landmines. However, following a few simple rules of thumb
can minimize the risk.
Overall, the outlook for U.S. publishers in China appears promising.
New political and economic philosophies have made the country's
marketplace much more accessible and driven up demand for imported
products and ideas. As the market continues to grow and diversify,
so can the opportunities for American publishers who find inroads
through relationships with established Chinese publishers and distributors.
In the coming weeks, you can expect to find more detailed information
on opportunities in China in AEP Online and on the AEP website.
Next time, we’ll look specifically at the three major distribution
channels and the importance of the right partners and the role
of relationships.
Questions, ideas, or
in need of more information? Please contact Stacey
Pusey at 856-241-7772.
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