Most parents have no perception of quality nor the ability of differentiation outside of price. It's the same with school as it is with food here, how cheap is it.
I worked at a HCFR for almost 2 years. I loved it. I was talking to 2 ladies in Chinese about it and the wonderful things we do. One of them beamed and said with finality, "It's so cheap!" with the other nodding away in agreement. I was
They didn't care that we taught better than the other cram schools, didn't scream at kids or that the kids came out with real proficiency. This was an middle to upper middle class area.
The other issue is management. You can't grow an HCFR like a chain. It requires not only good people who can follow directions and improvise, but most importantly it requires both great management with parents and employees. That former part is a hard requirement to meet. You need to be people-centric with your employees in a country that treats them like potatoes. The boss had issues with some people wanting to be potatoes. Bad teachers can sink your hard work fast.