Why is Tokyo a Great City for an Education Franchise?

Hello and welcome to the New Horizons English language franchise website. We believe you have found this page as you are considering the various education franchise opportunities that exist in your market. We are confident that Tokyo, Japan is a great city with ample potential for an education business and would like to provide a few thoughts about this as well as give you a simple overview of our franchise opportunity.

As a potential business owner please review this page as well as our entire site to further understand what a franchise offer like New Horizons English can bring to your desire to build an English language franchise.

Tokyo is a thriving city that has an expanding market for English learning with a large population that has high purchasing power. Here are some reasons that make Tokyo a worthwhile destination for an English language franchise.

  1. It has high demand for English language learning due to moderate English proficiency.
  2. Tokyo leads all metropolitan areas in the world with a GDP of $1.62 trillion.[i]
  3. Tokyo Metropolis has a population of more than 36 million people, which is a huge, lucrative market that you can tap into. [ii]
  4. The city is the financial center of Japan with 51 Fortune 500 companies; the highest concentration in the world. Locals here have high spending power and Tokyo proves to be a lucrative choice.

Here are further details why Tokyo is a good choice to open an education franchise.

Education and English Learning

Tokyo is the center of education with 1,355 elementary schools, 817 junior high schools, and 431 senior high schools (as of May 1, 2014), according to the Tokyo Metropolitan Government. The city boasts over 100 universities, which amounts to a quarter of all universities in Japan.[iii]

Some of these top ranking universities include The University of Tokyo and Rikkyo University.

English language skills are coveted by students, business people, Japanese teachers, and other institutions. However, there are only 15,000,000 English speakers in Japan. The gaping statistic attracts a large number of English teachers to Japan from abroad. Private English conversation schools, known as Eikaiwa, employ native English-speaking teachers to teach English to children and adults. The knowledge of Japanese is not essential for teaching English in private schools, which makes it easier to hire teachers for your English language franchise.

Japan lags behind other Asian countries where English is concerned. Japanese students have among the lowest scores in Asia in the international TOEFL test for English despite Japan’s target to improve English standards among students.[iv] More importantly, the language business market was GBP4.5 billion in 2012, a 102.7% rise from 2011. In 2013, the market continued to grow another 104.3% to reach an estimated GBP4.7 billion. This market is projected to expand steadily, achieving GBP5.3 billion yen, 127.7% of the size in the previous fiscal year, based on sales of the businesses.[v] In 2015, Japan was the third largest market for English language training, behind China and South Korea. It is projected that over the next five years, Japan will hold this position.[vi] The absolute value of English language training purchased will continue to rise and business owners can tap into this market with the New Horizons English language franchise’s proven system backed by years of research and strategies.

Population & GDP

As you are certainly aware, the Greater Tokyo Metropolis is home to more than 36 million people (as of 2010), which makes about 30% of Japan’s total population of 127 million.[vii] Of course this is the largest city in the world, yet when you think about the previous fact of only about 15 million speakers in all of Japan, or only 12%, that means there are nearly 32 million people in Tokyo alone that do not speak English. Truly a great opportunity for an English Language franchise.

But are they able to pay for training? The city tops the list of GDP with $1.62 trillion (as of 2014) in gross domestic product, the highest in the world. Tokyo apes the economic growth of Japan.  The following data by The World Bank reveals the current level of economic growth in Japan:

  • The GDP of Japan was $4.601 trillion (as of 2014).
  • The total population of Japan was 127.1 million (as of 2014).
  • On the purchasing power parity (PPP), Japan took the position of the fourth largest economy in the world in 2015.[viii]

The cost of living in Tokyo is high, but jobs are well paying, and the amount of disposable income is well within the ability for young adults and working adults to afford English language courses. As well, with high salaries, which allows teachers to save sufficiently, and modern facilities, teachers from around the world will be keen to find employment in Tokyo. For business owners looking to open an English Language franchise, that means an abundance of qualified teachers and students eager to learn from them.

Being the financial capital of Japan, Tokyo attracts multinational companies from all around the world. Tokyo alone has 51 Fortune 500 companies, which is more than anywhere else in the world. The city is home to the third largest stock market in the world. The locals here have high spending power and the city proves to be a lucrative choice to open an English Language franchise.

Infrastructure and Facilities

Tokyo has an extremely well developed and efficient system of public transport. This extensive transportation system with trains and subways makes transportation easy, which allows for students to access any area of the city for learning. As well, with the world’s 13th highest ranking for connectivity[ix], and the world’s 4th best ranking for internet speed[x], students are able to learn from home, office, any local coffee shop, or simply on the go at any time.

This all means that finding the “perfect” location is not as important for a modern language business. Students can easily access the learning center, yet even more interesting is noting that with a program like New Horizons English, the students are able to complete a substantial portion of their learning via live virtual learning over the internet. All in all, Tokyo is a modern city with modern infrastructure and modern connectivity, allowing for an education business like New Horizons English to succeed.

Conclusion

With all the benefits and opportunities that Tokyo provides, it is a top destination for an education franchise. Considering its highly developed infrastructure, economic development and market scale of Tokyo, it makes a great location for an English language franchise.  To build a business that is sure to grow, you should consider an English language business in Tokyo.

New Horizons English Overview

We would now like to give you a simple overview of the New Horizons English franchise. Alternatively, you can visit our website and download our prospectus for more detailed information.

The New Horizons English franchise has been built with the intent to leverage the way modern, busy students learn – with flexibility. It is difficult to always be at the learning center when the student is a young adult (friends and activity are always more important) or a working adult (work, family, and life are always more important).

New Horizons English is the answer to providing instruction and test preparation for busy adults using an industry leading education platform to deliver a unique blend of multimedia, live instruction in-center, and on-line on any internet enabled device.

The New Horizons English teaching method enables students by giving them three key learning advantages:

  1. Learn at your own pace
  2. Learn anywhere, anytime with Online Live®
  3. Learn with your own teacher with Mentored Learning®

All of this is supported by a didactic team in state of the art learning centers designed around the student to give 360 degree support, every day of the week.

How does it work?

The New Horizons English Method uses the natural method of second language acquisition which focusses on the development of intuitive learning based on communication rather than learning the structure of the language. The result of this is the ability to speak the language far quicker than with traditional learning methods, in fact, the student will be speaking English from day one of their course.

The course is made up of 36 Cycles, each containing 9 multimedia lessons and 3 live lessons. The live lessons are divided onto Online Live® Progress classes and in-center Milestone classes where the student is assessed for progress to the next cycle. A cycle will generally require 1 month for completion. In addition, the student will be able to access digital workbooks which act as study aids and are available to download and use at the students’ convenience throughout the course.

Finally, the training center. We know that while our multimedia and online lessons are at the cutting edge, nothing can replace the human touch. For this reason we have carefully designed our centers to give the student access to teachers and a learning environment that has been designed to reflect the needs of today’s student. All our centers are fully equipped with the latest technology in specially designed zones that enable every student to tailor their learning experience with the New Horizons English education franchise.

We genuinely believe now is the right time for a new and modern approach to an English language franchise in Tokyo, Japan. We are very interested to discuss in great detail with interested and qualified partners. For more details, please visit our site and download our franchise prospectus.

[i] https://www.jetro.go.jp/ext_images/usa/jetro_invest_japan_report_2015.pdf

[ii] https://en.wikipedia.org/wiki/Tokyo

[iii] https://www.expatfocus.com/expatriate-tokyo-education-schools

[iv] https://www.ets.org/s/toefl/pdf/94227_unlweb.pdf

[v] https://www.yanoresearch.com/press/press.php/001295

[vi] https://www.ambientinsight.com/Reports/DigitalEnglish.aspx

[vii] https://www.metro.tokyo.jp/ENGLISH/ABOUT/HISTORY/history03.htm

[viii] https://www.tradingeconomics.com/japan/gdp-per-capita

[ix] https://www.connectivityscorecard.org/countries/japan

[x] https://en.wikipedia.org/wiki/List_of_countries_by_Internet_connection_speeds