Since 2008, China’s children training industry thrived along with the holding of the Olympic Games and the World Expo. However, in recent years, the competition has become fiercer. Since 2014, a great number of children English training institutions have closed down one after another or suffered from a narrowed market space. Apart from the impact of government policies, the inaccurate market positioning and misunderstanding about the teaching methods are major reasons for their poor business performance.