Following the recent Annual China Agent Summit, the Beijing Overseas Study Service Association (BOSSA) – which represents more than 180 members – shared its findings on the latest market situation with StudyTravel Magazine.
Recovery: Mingze Sang, Director of BOSSA, advised, “Many agents anticipated a significant recovery in the study abroad market following the reopening of borders, which would translate to increased business. However, while agents have received a growing number of inquiries for consultations, the rate of signed contracts remains low, indicating a disparity between interest and actual commitment.”Around 80 per cent of BOSSA members surveyed said that the market is becoming more competitive, while 90 per cent said that they anticipated “tough times” in the next three years. Only 10 per cent said that student enquiries had exceeded their expectations.
Sentiments from member agencies of BOSSA.
Nonetheless, visa grants for Chinese students from the ‘Big Four’ (UK, USA, Australia, Canada) in the 12 months to July 2024 was up by 12 per cent, compared with the same period of the previous year, as the country continues a steady recovery from the pandemic.
The UK issued more student visas to Chinese students than any other destination during that period, according to BOSSA, followed by the USA, Australia and Canada – all of which increased over the previous year.BOSSA anticipates that the number of students will continue to increase slightly, with greater diversity of study choices, and more cost-conscious selections.Insufficient higher education opportunities in China and dissatisfaction with domestic education will continue to drive demand, the association said, along with increased incomes boosting the ability of more families to afford overseas study.
Diversification of demand: A trend in the post-Covid market, BOSSA said, is that more students are opting for alternative or less costly degree programmes.“The situation is complex; visa statistics show a recovery for the US market alongside an increase in Australia’s appeal,” Mingze said.“However, students heading to traditional English-speaking countries are often targeting high-ranking universities. Notably, there is a larger cohort of postgraduate students compared to undergraduates. Those who are unable to gain admission to prestigious institutions are increasingly likely to select more affordable options.”The number of international students at higher education institutions in the USA declined in the 2023/24 academic year to 277,398, according to the latest Open Doors report, the lowest level for 10 years. The decline meant that India leapfrogged China as the top source country for the USA last year.
Commenting on the election of Donald Trump in the recent presidential election, Mingze said a further major impact was not expected. “Our members have not commented on studying in the USA under the newly elected president. They are focused on navigating the current tough and competitive business environment. However, I believe that the election itself will not have a significant impact on the study abroad market. The primary factors that could affect the market are economic conditions and global stability.”
Students are considering a more diverse range of options for study abroad.
Similar findings were identified in research on the Chinese agency market released by Bonard.
Su Su, Senior Project Consultant at Bonard Education, said, “Feedback from our network of local agents consistently highlights that the economic downturn is leading more students to consider the return on investment of studying abroad. For example, programmes like the shorter and quicker graduate courses in the UK, or destinations in Asia, are becoming increasingly popular.”
By 2023, the UK had exceeded pre-pandemic numbers of Chinese higher education students, while Australia, Japan and Germany had come close to matching 2019 levels.
Enrolment of Chinese higher education students in the major destinations over the last six years. Graphic source - Bonard.
However, the North American destinations had struggled to recover the Chinese market. Bonard said that in light of recent restrictions on inbound mobility, Canada was unlikely to recover in the short term.
The organisation also presented visa grant data from some of the major destinations. While Australia, New Zealand and the UK have operated at consistently above 90 per cent approval for Chinese student visa applicants, grant rates for Canada have been more mixed and were at only 73 per cent in the first quarter of 2024. Meanwhile, Chinese student enrolments in Hong Kong increased by 38 per cent between 2019 and 2023 to 17,822, and Malaysia has also attracted increasing numbers.
Another element of the cost-conscious drive is that international foundation programmes have become more popular, which are “providing a more accessible and cost-effective entry point” for those seeking higher education qualifications, according to Liu Qi, Founder of JT International Group & London Global Education and a BOSSA member.
Student motivations: Bonard highlighted Ministry of Education data that shows 84 per cent of Chinese that go to university overseas return for employment, and that the reputation of an overseas institution determines a graduate’s competitiveness in the Chinese job market. And around two-thirds of students (66 per cent) consider the employment rate of graduates to be very important, the same survey found. Therefore, institutions’ efforts to boost Chinese students’ employability, such as internship programmes, can boost attractiveness, Su said.
Similarly, BOSSA recommended that agent members understand the job market and degree recognition in order to more effectively promote the benefits of their study abroad programmes.
Recruitment strategies: In terms of recruitment strategies, Bonard said that agencies remain the most important channel and urged educators to be aware of the market coverage and specialisations of agencies in the Tier 1 and New Tier 1 cities, as these can vary widely. They also recommended digital marketing through platforms such as WeChat, Xiaohongshu, Bilibili, Douyin, and Weibo to build a brand in the Chinese market, and to back this up with B2B and B2C roadshows.
Graphic source - Bonard.
She added, “To remain attractive in this market, institutions must focus on superior service, clear selling points, and effective recruitment channels.”
