1、1High-end Training Services Target the RichSince the policy of “letting some people prosper before others” was implemented following Chinas reform and opening-up in 1978, a flourishing middle class has arisen in the nation. People in this income bracket, with relatively abundant earnings and hefty p
2、urchasing power, can afford to raise the educational level of themselves and their kin. High-end training services have emerged to meet the demand. Demand for Business Skills The countrys burgeoning population, along with its unprecedented economic development, has accelerated the expansion of new w
3、ealth in the nation, as compared with others around the world. According to the Asia-Pacific Wealth Report jointly issued by Merrill Lynch and Capgemini in October 2009, the percentage of High Net Worth Individuals (HNWI) pegged at above US $1 million in China dropped by 11.8 percent to 364,000 in 2
4、008 but that figure still surpassed the UK. Despite the global economic turndown, China took fourth place in the world 2for HNWI. Those with an annual income of over RMB 150,000 in China stand at nearly 76 million, a staggeringly large figure for any country. Now the people that make up that group h
5、ave begun to look for ways to further their assets growth through training. The aim is to broaden their professional perspectives, to better operate their own private businesses, and to learn appropriate deportment while interacting and negotiating with their foreign and domestic counterparts. They
6、are trying to find a balance between their work and private lives, in an effort to raise the quality of their life.Naturally, they are also keen on helping their children get an edge in life through skills training. As of now, the business training industry in China has reached RMB 50 billion and co
7、ntinues to grow at a rate of 30 percent annually, among which high-end training services hold a dominant position. Brisk demand has spurred on many entrepreneurs to look into these business opportunities, including schools of higher learning with existing business or management faculty resources. Ru
8、nning training classes repurposes these resources. For example, business colleges conduct private international investment or finance training sessions or money management 3classes; art colleges open calligraphy or painting classes to the public; and schools of fashion launch personal image building
9、 courses. The first high-end training programs that made their way into China were the EMBA (Executive Master of Business Administration) programs, which were designed for senior managers and entrepreneurs. Over the years, they have steadily attracted the elite from a wide range of sectors, includin
10、g business and trade, manufacture, finance, telecommunications and real estate. Many trainees have made the annual Forbes China Rich List. Along with providing broader professional perspectives, such programs also serve as an exclusive club for participants to build social networks. The Wuhan Univer
11、sity EMBA Training Center established an alumni association that grants its members full management support from the EMBA Center long after they graduate. Zhao Hanyu, a member of the association, told China Today: “Such alumni-based relations seem to be more dignified than straight business associat
12、ions, creating a more natural space to form mutually beneficial relationships in the future.” The 46-year-old Jin Li gave up her career to become a 4full-time housewife, because her husbands income was high and quite stable. However, after awhile an emptiness grew in her without something to do each
13、 day. She decided to enroll herself in an Elegant Women Training Class, which not only helped to restore her passion for life but also indirectly improved the life of her husband and son. She has learned to prepare a traditional cup of tea to help her husband relax after a long days work, and tutor
14、her son in classical Chinese prose. “I am quite satisfied and happy with my current life,” admits Jin Li. Pricey Prepping The 30-day Elegant Women Training Class cost Jin Li RMB 36,000, equivalent to the combined annual incomes of three migrant workers. A survey of tuition fees for such training pro
15、grams paints a picture of very pricey prepping: RMB 3,800 for a 4-day personal image building class, RMB 16,800 for a 5-day health preserving training, RMB 36,000 for a 25-day training course for women, RMB 48,000 for a 24-day Chinese tradition and culture training, and RMB 49,000 for a 24-day class
16、 for COOs 5(capital operation officer). The Cheung Kong Graduate School of Business (Cheung Kong GSB) is well known for its EMBA program, the tuition for which reached RMB 528,000 in 2009, making it the most costly program in China. Consider the fact that the per capita disposable income of Chinas m
17、ost economically developed city ?C Shanghai ?C is only around RMB 27,000. The two-year EMBA program consists of roughly 640 class-hours, which means that the per capita Shanghai annual disposable income might only cover around 33 class-hours. What makes the upward spiral of tuitions more peculiar is
18、 that the per capita disposable income for urban residents in China in 2009 was only RMB 17,000. You would think the current economic situation would make it very difficult to promote such high-end training programs to the extent they are in developed countries. China should in theory be a relativel
19、y small market considering disposable income only. Instead, even withthe exorbitant fees, supply still falls short of demand, which further escalates the prices. According to statistics, from 2002 to 2009, tuitions for EMBA programs offered by the nations top schools have grown on average by over 45
20、 percent. Compared to 2007, over half of the top ten EMBA program 6providers in China have raised their 2009 tuitions by 30 percent or more. In early 2009, the number of applicants for EMBA programs had already increased by 20 percent. Mutual Consent Why do such programs cost so much? A trainer at a
21、 high-end training institution told China Today that a high-quality education coupled with a low sticker price is a contradiction. But such lofty fees are only justified by high-quality training involving top facilities and faculty. “Only renowned teachers could draw these high level clients,” state
22、s the management of one high-end training institution. The Cheung Kong GSB program professes to have a team of world-class multicultural professors, all experts in business management. They for the most part were born and raised in China, but have lectured at top universities throughout Asia, Europe
23、 and the U.S., such as the Wharton School of the University of Pennsylvania, the London School of Economics, Yale and INSEAD. A staff member from one of the etiquette training schools told China Today that the educational background of their trainers ranges from 7bachelors to post-doctoral degree. T
24、he Elegant Women Training Class in which Jin Li participated has brought together famous teachers from the Chinese Artists Association, the Chinese Writers Association and the Chinese Calligraphers Association. On the other hand, since applicants to these programs are acclimated to the high life, th
25、ey dont feel the “sticker shock.” Zhu Jiangtian, a professor and lawyer from Zhengzhou City in Henan Province, recently enrolled himself in a training course in Beijing. This one-year program requires around 24 class-days and costs nearly RMB 50,000 (excluding the cost of food, accommodation and the
26、 commute between Zhengzhou and Beijing). Jin Li told China Today: “If the training brings about a change in my life, I feel I got my moneys worth or even more.” Maybe its that notion that drives people to pay these fees no mater how high they go, or it could be that the high price confers on clients
27、 the badge of exclusivity. The real situation however is that both qualified and unqualified training institutions are mixed together and the standards for pricing are undeveloped. Fees for these programs can vary wildly. Take the EMBA programs as an example. The 8lowest tuition in the current marke
28、t is RMB 152,000 while the highest hits RMB 528,000, with a 3.4-fold disparity. Yang Shu, director of the Consulting Center at Tsinghua Universitys School of International Engineering Project Management, told China Today: “One thing that is lacking in this industry is a comprehensive and unbiased assessment system to evaluate and classify the training programs.” But even that probably wontstop a nation with an insatiable appetite for knowledge.
