Changes in the business environment driven by the declining birthrate, revisions to the Courses of Study, and university entrance examination reform

「当社を取り巻く学習塾業界におきましては、少子化が進行する一方で、子供一人あたりの教育関連支出は底堅く推移しております。また、私立高校の授業料無償化の進展に伴い学習塾への需要拡大が見込まれる一方、ＡＩ活用による教育のデジタル化や大手事業者によるＭ＆Ａの加速により、競合環境は一段と厳しさを増しております。」

「In addition, partly as a result of the expansion of free tuition at private high schools, some third-year junior high school students have decided to attend private high schools without sitting entrance examinations for public high schools and have left the tutoring schools early, becoming a factor behind the decline in revenue.」

「In the private tutoring industry, the educational sector is undergoing major change as the digitalisation of education accelerates with the introduction of free high school tuition, the diversification of entrance examination systems and advances in ICT. At the same time, in addition to the increasingly difficult operating environment caused by the declining birth rate and entry by companies from other industries, it has become essential to possess strengths that clearly differentiate a company from its competitors, such as high-quality educational programmes tailored to diversifying needs, clear examination results and unique brand value.」

「The number of elementary, junior high and high school students has continued to decline from its peak of 22.26 million in fiscal 1985, when the second-generation baby boom created a demographic bulge, reaching a record low of 11.98 million in fiscal 2024. The rate of decline has accelerated in recent years, with the number of students in 2024 down 11% from 2014. The number of elementary, junior high and high school students is expected to continue declining, and our total target market is expected to shrink over the medium to long term.」

「The environment surrounding the tutoring-school industry is also undergoing major changes due to economic conditions, the declining birthrate, revisions to the national curriculum and university entrance examination reforms.」

「The number of students in elementary, junior high and high schools has continued to decline after peaking at 22.26 million in fiscal 1985, the peak year for the baby-boom junior generation, and fell to a record low of 12.31 million in fiscal 2022. Although the rate of decline has slowed somewhat in recent years, the number fell by approximately 1% annually throughout the 2010s and was down 10% in 2020 from 2010. The number of students in elementary, junior high and high schools is expected to continue declining, and the company’s total target population is expected to decrease over the medium to long term.」

「The environment surrounding the tutoring-school industry is also undergoing major changes due to economic conditions, the declining birthrate, revisions to the national curriculum and university entrance examination reforms.」