Recently updated on July 17th, 2016 at 10:16 pm
Max Hasin: I am planning to open my language school in China, however not for teaching English, but German since I have identified a niche for that in China.
Now I am looking for ideas on where to set up this school. Factors to consider are cost of labour, rent, potential customers, and preferential policies by different provinces.
THOMAS AW: From Berlin, check where the German corporations have invested most, in China .
Bingo!
Osita Chiagorom: go to changchun in the north. its a very good spot.
James Ljzhhhhh: shanghai and bei Jing
because if you would be successful in the 2 cities, you can save your advertisement fees.
Tait Lawton: What I would do is setup a website and run paid search ads across China. See where people searching for this service are located. This would be very valuable information.
Then catch some of those leads and talk to them. See what they tell you. I’d say there’s a 90% chance you’ll learn a few things that will be very valuable.
Max Hasin: Thank you, Tait. This is very insightful, especially since product testing is essential in the beginning. Using this approach, it would also be imporant to get a large enough sample size.
Jeffrey Tong: Tsingtao Beer was the only product I remembered. As Thomas Aw suggested… Where are the major German firms headquartered in China? Isn’t Germany really strong in solar now?
Osita Chiagorom: Changchun city is the home of joint Chinese/German venture of VOLKS/FIRST AUTOMOTIVE WORKS also known as FAW. Thers are lots of Germans there who work for the VOLKS group and AUDI MOTORS. Also its a melting point of all tribes and tongues from all over the world. There is no nationality you will not find in that city. I lived there from 2001 to 2006 and still visit there yearly. The people are very warm hearted. You will surely enjoy the city.
Jeffrey Tong: James, Shanghai and Beijing may be int’l cities, but in my opinion, they’re too polluted and too congested. Why do people have to move there to find jobs? The jobs should locate where the people are, no? Or does PRC restrict movement of foreign companies?
Max Hasin: The PRC government very probably does not restrict movement for foreign companies, actually it would benefit them if more comapnies would go to less developed cities and help development there (one of the goals in the 12th five year plan).
I assume that many foreign companies go to the big cities because it seems like a safer option, since a) other foreign companies are there too, and b) rule of law is enforced better.
Jeffrey Tong: Max, just remember not to go into China to take advantage of people. If you are going in with greed in mind, you’ll be screwed first! If you go in willing to share, they will share with you too. With that in mind, find a local whom you trust to form a partnership with.
Jerel Bonner 马扬: Max – the PRC has very high barriers to entry for foreigners requesting educational licenses. So any language training you do without a Chinese partner would be a challenge.
Max Hasin: Yes, Jerel, you are right, for example you cannot form a WFOE to open a school, it has to be a Joint Venture. Could you tell me more about the barriers?
Jeffrey Tong: Don’t think of joint partnership as a barrier. It’s because China has a history of being abused, that they impose these requirements. When you go in with a giving heart, it is part of God’s plan – Sow your seeds generously, and you shall reap rewards!
Max Hasin: You are right, Jeffrey. The PRC has a right to protect certain vital industries like education, and I do not complain about that.
SHUYAN Luo: If for adults, I would consider big cities(beijing, shanghai, guangzhou,shenzhen) since they are the demanded areas although the competition is huge. There are around 8 famous training institute in China, all are very successful.
But if you want to target at younger generation, then you will have more options for the city.
A Chinese partner definitely will help you a lot.
Peter Liu: Try not to start from Beijing, Shanghai, or Guangzhou. Too many language schools there, which you feel pretty hard to survive as a new comer. Try other cities at a lower lever, as Nanjing, Wuhan, Chongqing, Chengdu, Changsha, etc.
Farid Benzeroual: I would like to recommend Chengdu, the most developed city in the western China, economics here are vivid, a lot of opportunities here as well.
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