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Insights into the Fall of Brilliant Education in the Private Education Industry

As a member of the private supplementary education industry, specifically the learning/tutorial center sector, I have been approached to share my perspective on the decline of Brilliant Education.

Let me clarify that I have no affiliation with Brilliant Education, nor do I possess any inside information. My analysis is solely based on my knowledge of the private education sector.

Brilliant Education, established in 1996 with six centers, one of which was unregistered according to the Education Department of HK, falls under the tutorial center category of private tuition providers. It's important to note the distinction between tutorial centers and learning centers. While tutorial centers primarily focus on assisting students with homework and exam preparation, learning centers offer students a unique curriculum designed to enhance specific skills such as language, math, science, or art, without providing homework support.

The main challenge faced by tutorial centers, such as Brilliant Education, revolves around the summer holidays. During this period, schools break for summer, leading to a decline in demand for homework assistance and exam preparation services, consequently resulting in reduced revenue for July and August. The key factor behind Brilliant Education's struggles was their failure to accumulate sufficient cashflow before the summer break to sustain operations until September when schools resume.

On the other hand, learning centers experience a surge in revenue during summer holidays. Recognizing this trend, learning centers often launch their summer promotions as early as May to capitalize on the summer market. For instance, Babington Education, with 36 centers across HK and Macau, witnessed a significant revenue increase of over 40% during July and August compared to term time. Approximately 80% of our centers achieved an average revenue growth of 52% during this period, maintaining a ratio similar to pre-covid times.

In conclusion, the contrasting impact of summer holidays on tutorial centers and learning centers played a pivotal role in the fall of Brilliant Education. This highlights the importance of financial planning and innovative strategies within the private education industry to ensure sustained success. As we continue to navigate the landscape, let us learn from past experiences and embrace the opportunities that lie ahead.

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