Schools learn lessons and reap rewards

Changes in society triggers new approach as English language centers refine their business models

When you step inside the redesigned Wall Street English learning center in Beijing's Solana shopping mall, you are immediately greeted by two receptionists.

On hand to offer information and guidance to students, they could easily be working at an upscale hotel, dealing with requests from guests.

But then this no ordinary center. Divided into inter-connected and multifunctional cubicles with glass windows, the school has bright red ceilings and warm lights.

The individual desks are also equipped with a computer and earphones.

This new-look and new courses are part of a 100 million yuan ($15.6 million) refurbishment plan rolled out in 2013 by Pearson Plc, a multinational publishing and educational company in the United Kingdom, which owns Wall Street English.

"The focus is on creating an environment that is more digital, interactive and supportive of communal learning," Tim Russ, national operations director of Wall Street English China, said.

"It will take three or four years to remodel all the centers in Beijing, Guangzhou, Shanghai and Shenzhen."

Eight new centers in cities such as Chongqing, Chengdu and Wuhan will open next year and more are scheduled by 2017, although concrete details have yet to be released.

Already, Wall Street English has up to 66,000 students in China. The operation here accounts for between 25 percent to 30 percent of its global business.

"Revenue from the company's Chinese operation is about 30 percent of the worldwide total and China is the fastest growing market in the world," Russ said.

According to Pearson's half-yearly report released in July, the group generated about 6 percent of its revenue in China last year.

Still, Wall Street English managed to enroll just 65,000 new students in 2014, roughly the same figure as a year earlier. Fees can range from 45,000 yuan to more than 400,000 yuan for VIP courses.

Media reports have questioned whether the aggressive methods of the company's sales team and the non-refund policy if students quit courses are part of the reason for the static numbers.

Wall Street English has since decided to change its non-refund policy without going into details.

The company's marketing strategy has also been revised. This relies on "word-of-mouth" recommendations from existing students to drum up new business, while a closer working relationship with the students has been encouraged. "New students are now clearer as to what we offer," Russ said.

"It also requires our consultants to build long-term and healthy relationships with our students."

The rapid change in Chinese society and how people learn English here has prompted the company to refine its business model. The use of technology has also helped Wall Street English "stay ahead" of the field.

"People have shorter and shorter attention spans today, so we have come up with shorter lessons but more of them to increase and retain their interest, and help them learn," Evert van Steenbergen, center development director at Wall Street English, said.

The company plans to launch new teaching initiatives in future by taking a digital and online approach. WeChat, an instant messaging service developed by Tencent Holdings Ltd, will be used, while courses will also be run on a new mobile app platform.

By doing this, teachers will be able to provide feedback to students in "real time" and this in turn will expand Wall Street English's traditional bricks-and-mortar approach.

"But online learning despite its importance, is only part of the solution," Russ said. "Very few students that only take courses online are successful after three months.

"You need feedback to keep learning. When I came to China, speaking English was a big advantage at work. Now if you don't speak English, you have no choice," he added.

A growing number of new students at the company's centers already have a grasp of the language and are now looking for tailor-made courses, such as how to conduct a meeting or interview in English.

The average age is between 18 to 30 years old, while there are more women students than men. "Most of them take courses to develop their careers," Russ said.

Even China's slowing economy has failed to dent demand in English language courses, according to Samantha Ayton, first secretary (education) at the cultural and education section of the British Embassy.

"Slow economic growth can lead to greater demand in certain sectors," she said. "With increased competition in the market, essential skills and qualifications such as English are often prioritized."

Ayton has continued to see a rise in the number of students that take the International English Language Testing System examination, or IELTS, which is needed to study abroad.

In fact, the number of Chinese mainland students at higher education institutions in the UK has climbed by an average of 13 percent annually during the past five years.

Even the number of mainland Chinese students in UK schools jumped by 29 percent last year compared to 2013.

But when it comes to the adult market, the number of students at traditional establishments appears be declining.

Wang Jun, director of teacher development and management centers at the New Oriental Education & Technology Group Inc, a leading Chinese-English institution, is convinced that is a sign of changing times.

"People are able to access all kinds of English resources when traveling overseas or simply by watching American television series," Wang said.

"Free applications on how to learn or improve your English are also widely available. There is even flexibility on learning online via your smartphone."

New Oriental has now set up a free English language online center. This includes television and culturally-related material as well as lecturers.

For paid courses, the company charges between 800 yuan to 3,000 yuan, which is considerably less that Wall Street English.

"They are more a symbol of status because of their expensive fees and a membership for a network of white collar workers," Wang said.

But Xu Shan, a Beijing Wuzi University graduate, was quick to dispute Wang's assessment.

The mechanical automation major failed to score high marks in English classes after becoming bored with the textbook techniques.

But a year after graduation, Xu enrolled at a Wall Street English center and a whole new world opened up for her. She was encouraged to speak her mind and took part in English debates.

Her hard work eventually led to working opportunities in India, France, Spain and Thailand.

"I thought learning English would help me progress at work," Xu, who returned to China in July and paid 45,000 yuan for her course said.

"But now I know learning the language is about knowledge. It's a different mindset, and I'm just glad I did this in the end."