With the depressed consumer spending caused by the recession since the fall of 2008, and the cost reduction (language training, translation expenses, etc.) of corporate customers, in addition to the sense of distrust toward the language business industry still remaining among the users caused by the bankruptcy of the top player in October 2007, the total language business market in fiscal 2008 including peripheral business has shrunk by 5.2 percent from the previous year to 767.2 billion yen, and the net language business market without peripheral business by 5.5 percent to 515.8 billion yen.

Continued from fiscal 2008, as the sales of many enterprises in the market will continue to be slow, the total language business market in fiscal 2009 expected to decrease by 3.7 percent from the previous year to 738.6 billion yen, and the net language business market without peripheral businesses to decrease by 4.0 percent to 495 billion yen.

However, businesses focused on pre-school children, such as (international) pre-school and English teacher dispatching to kindergarten and nursery school, and language examination business are expected to grow even in fiscal 2009.

The total language business market in fiscal 2008 including peripheral business was 767.2 billion yen, decreased by 5.2 percent from the previous year, and the net language market* without peripheral business was 515.8 billion yen, decreased by 5.5 percent.

Although the language business market had declined with the bankruptcy of the top player in October 2007 and the deteriorated image of the industry which followed, it was expected that the market will recover its sound business environment by the efforts of individual businesses reinforced by enhanced consumer protection movements. Following the fiscal 2007, however, the market has shrunk in fiscal 2008 again, due to the decrease of BtoB sales for cost reduction, such as translation and employee training demand for which had been strong until fiscal 2007, in addition to the decrease of private customers influenced by the depressed consumer spending and prolonged impact of the bankruptcy of the top player.

Although the total language business market has shrunk in fiscal 2008, it is notable that the following market segments have grown or sustained steady.

・   Language business targeted to pre-school age children, such as “(international) pre-school (where English is used instead of Japanese)” and English teacher dispatching to kindergartens and nursing schools has been strong, due to the growing interest in teaching English to infants and young children.

・   Language examination market has been strong with the increasing demand for foreign language skills in business activities.

・   Books and teaching materials market has expanded due to the many best selling items appeared on the market, such as books dealing with the speeches of the President.

・   Although the foreign language classes for adults in total has decreased by 9.1 percent from the previous year to 200 billion yen, the market segments focused on business needs and one-on-one lessens have been relatively strong as opportunities are increasing for using foreign languages in business activities, along which the needs are being subdivided.

As the business of many enterprises in the market will continue to be slow in fiscal 2009 as well under the prolonged negative impact of the recession, the net language business market without peripheral business is expected to decrease by 4.0 percent from the previous year to 495 billion yen, and the total market with peripheral business to decrease by 3.7 percent to 738.6 billion yen.

In the middle to long term view, however, the demand increase of language business for children (such as English conversation classes for infant and small children) can be expected before and after the implementation of new official guidelines for school-teaching (in fiscal 2011) which include the introduction of compulsory English teaching in the elementary school. Increasing needs for foreign language learning among the business persons can also be a factor for revitalizing the market. 

Regarding the translation & interpreting market as well, although the market has been shrinking slightly in fiscal 2008 to 2009 due to the fact that, impacted by the recession, increasing portion of such works have been processed in-house, the market is expected to grow in the long run, as the globalization and overseas development of Japanese enterprises are progressing, and the trading with foreign enterprises increasing.