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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.

 

Download a detailed itinerary (PDF) of AEP's business development mission to China

Click here to view photos from the trip

 

 

 

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