ELT: are the halcyon days over?
Friday, January 14 2000
Published on AllBusiness.com
For many years it has been accepted that publishing for English language teaching has experienced considerable growth and has been highly profitable. But is the ELT market still dynamic and profitable for UK publishers? If so, why did Thomson sell Nelson ELT in 1995 and why did Reed sell Heinemann ELT in 1998? Do the Big Four—Pearson Education, Oxford University Press, Macmillan Heinemann ELT and Cambridge University Press—dominate the market to the extent that there is no way in for a newcomer? If so, why is Express Publishing making such an impact?
The market: 1999
and beyond
As there has been no definitive study of the global ELT market for many years, we are restricted to an educated guess as to its size. If all accessible school and adult markets are included, my estimate is that the institutional ELT market is worth around £600m at customer level (i.e. at retail). The consumer ELT market is probably worth around £400m, if we include all self-study materials sold through the various channels: door-to-door, direct marketing, partworks and retail. So we are talking about a global business of at least £1bn—a sizeable business. But is it still a growing market?
It is generally recognised that 1998 was a difficult year for most ELT publishers, but 1999 was much brighter. The Asian economic crisis affected many countries in 1998, particularly Korea and Thailand. However, Taiwan was relatively immune, and all the Asian markets bounced back last year. Australia's language school market was badly affected in 1998, but Colin Hayes, director of ELT and education, reported a much better year for Cambridge University Press ELT in Australia in 1999, as did John Walsh of the Bournemouth English Book Centre (BEBC). According to the Oxford University Press, Japan's private language school market has not fully recovered from the local economic problems. The same may prove true for Korea. In Japan some local publishers and supply intermediaries are said to be in financial difficulties, and this may have a long-term effect on the publishing infrastructure.
Latin America had been providing much of the growth for ELT publishers over the past few years, so the economic downturn in Brazil and Argentina has exacerbated the problems already provided by Asia. Chris Harrison and Mike Esplen, joint managing directors of the new Macmillan Heinemann ELT business, say that the Brazilian devaluation had less impact than had been expected. But OUP believes that the next couple of years will be difficult in both Brazil and Argentina. The lack of parental funds is clearly affecting schoolbooks purchasing in Argentina. On the other hand, Mexico has continued on its growth path and has completely recovered from devaluation in late 1994. Chris West, m.d. of Macmillan Mexico,
The market: 1999
and beyond
As there has been no definitive study of the global ELT market for many years, we are restricted to an educated guess as to its size. If all accessible school and adult markets are included, my estimate is that the institutional ELT market is worth around £600m at customer level (i.e. at retail). The consumer ELT market is probably worth around £400m, if we include all self-study materials sold through the various channels: door-to-door, direct marketing, partworks and retail. So we are talking about a global business of at least £1bn—a sizeable business. But is it still a growing market?
It is generally recognised that 1998 was a difficult year for most ELT publishers, but 1999 was much brighter. The Asian economic crisis affected many countries in 1998, particularly Korea and Thailand. However, Taiwan was relatively immune, and all the Asian markets bounced back last year. Australia's language school market was badly affected in 1998, but Colin Hayes, director of ELT and education, reported a much better year for Cambridge University Press ELT in Australia in 1999, as did John Walsh of the Bournemouth English Book Centre (BEBC). According to the Oxford University Press, Japan's private language school market has not fully recovered from the local economic problems. The same may prove true for Korea. In Japan some local publishers and supply intermediaries are said to be in financial difficulties, and this may have a long-term effect on the publishing infrastructure.
Latin America had been providing much of the growth for ELT publishers over the past few years, so the economic downturn in Brazil and Argentina has exacerbated the problems already provided by Asia. Chris Harrison and Mike Esplen, joint managing directors of the new Macmillan Heinemann ELT business, say that the Brazilian devaluation had less impact than had been expected. But OUP believes that the next couple of years will be difficult in both Brazil and Argentina. The lack of parental funds is clearly affecting schoolbooks purchasing in Argentina. On the other hand, Mexico has continued on its growth path and has completely recovered from devaluation in late 1994. Chris West, m.d. of Macmillan Mexico,