Which City Is More Competitive When Online Education Becomes Popular Under The Epidemic?

Under the epidemic situation, schools are postponed to start school. In order to achieve "stop classes and stop learning", schools at all levels will carry out network teaching. Online education has never been such a concern. Online education industry has also been favored by capital in recent years.

The Ministry of Education recently carried out the education APP record in the whole country, which provided a convenient way to see the general picture and layout of the online education industry.

In November 2019, the general office of the Ministry of Education issued the "education mobile Internet application filing management procedures", requiring all localities to complete the filing of existing education APP between December 1, 2019 and January 31, 2020. Up to now, the Ministry of education has published 1928 educational APP record information in three batches. New Oriental, good future, and online education head office of the University of science and technology have recorded many products.

The mobile Internet industry, including online education, is also a stage for urban competition. In twenty-first Century, economic report combing reporters found that in the cities with well-developed online education, Beijing outperformed others, the number of record products and the number of head companies were far ahead. Chengdu and Hangzhou led the second echelon, and Hefei, Wuhan, Zhengzhou, Shanghai and other cities also formed a relatively strong online education industry.

The online education industry is obviously different from other Internet industries. It is not a "winner take all" format. This gives the non head online education company the chance to survive, and also gives the non tier cities the chance of industrial agglomeration. What are the characteristics of online education layout in these cities? What are the impacts of the epidemic on online education industry and related urban competitiveness?

"Online education city" different echelons

Beijing is the most developed city of online education in China. A total of 251 institutions, including individual sub batch records of different products, have recorded 612 education APP, exceeding the total number of products listed in 2-8 cities. This is closely related to the developed education, technology and capital resources of Beijing. The institutions for record are not only enterprises, but also colleges and institutions.

Chengdu and Hangzhou constitute the second tier of online education, with 74 and 63 institutions filing 165 and 112 education APP respectively. This is the two booming city of the Internet economy. Zhaopin recruitment released in 2019 the Internet industry talent development report shows that Chengdu ranks the fifth place in the job search for Internet talents, second only to northern Guangzhou Shenzhen. In recent years, under the guidance of Alibaba and other giants, Hangzhou has developed rapidly in e-commerce, Internet finance, high technology and other industries.

The competition between the third tier teams is more intense. The number of education APP recorded in Hefei, Wuhan, Zhengzhou, Shanghai, Changsha, Ji'nan, Guangzhou and Suzhou is not large.

It is worth noting that the number of online education APP records in Beijing, Shanghai, Guangzhou and Shenzhen, which are parallel to the city of Shenzhen, is significantly different from that of the 54 cities, which are only 48, 33.

Although the echelon level is obvious, it obscures the trend of online education transferring from the first tier cities to the second tier cities. This is because some head offices are distributing from Beijing to Wuhan and other places, and set up parallel headquarters or teaching research and development centers. However, the product record information still shows that Beijing is located instead of flowing into cities.

For example, Wuhan attracts the attention of online education companies. According to public information, Suntech agencies, ape counseling, learning tyrants, elite education, sparking thinking, head 1 to 1, 51talk and so on have all been in Optics Valley, Wuhan. Suntech set up a parallel headquarters in Optics Valley and bought over 70 thousand square meters of office buildings. But none of these companies have launched separate products in Wuhan, so they are not reflected in the filing list.

In the non tier cities, Chengdu has shown certain industrial competitiveness, and has hatched hundreds of words and other national online education brands. Many of these non tier cities have voluntarily thrown olive branches and offered preferential conditions for online education companies. Many filing agencies in Wuhan, Chengdu, Zhengzhou, Ji'nan and Changsha are registered in high-tech zones or free trade zones.

Why do two or three tier cities have the advantage of backwardness in competition? Many online education authorities told the twenty-first Century economic report that this is due to lower human resources costs.

"In Beijing, a slightly experienced development engineer is paid at least 25 thousand yuan before taxes, while the cost of social security and provident fund that the enterprise needs extra is 8166 yuan, and the office cost is up to 36 thousand yuan per month. This is a R & D Engineer. If there are 50, plus the annual salary and other industry practices, this part of the labor cost will be as high as 25 million yuan." An online education agency official said.

In terms of teaching positions, although the number of teachers in non tier cities is limited, online education needs a lot of tutors. This position requires low teaching, teaching and research abilities. The main task is to supervise students, correct homework or answer questions. Non tier cities can provide large amounts of such personnel.

Non tier cities have certain market radiation implications for online education companies. "The fate of a screen change" has been widely known in Chengdu's Oriental School of Wen Dao. Currently, this school has spread to many provinces and cities in southwest and Northwest China.

"Under the Internet technology, the products of Beijing online education company can of course cover the remote areas, but education is not only the product coverage, but also needs to carry out some personnel training, marketing and so on, which makes some regional central cities have more advantages." The above online education agency official said.

How to arrange the head office

Almost all online education head companies are concentrated in Beijing and Shanghai. Good future, New Oriental is the world's market capitalization of the first and second education companies, the two companies have recorded 31, 16 education APP.

Why are there two big differences in the strength of the two companies? This is related to their respective strategies. Good future is transforming into an educational technology company. Yu Minhong, chairman of New Oriental, has repeatedly said that he is not a willing person to take risks. In the first quarter of fiscal year 2020, the proportion of New Oriental's online business revenue was only 4.3%, far below the 15% of the good future.

Who is the first online education company to capitalization in China? Its market capitalization is about $8 billion 800 million, which is also located in Beijing, with two APP recorded.

In twenty-first Century, 14 heads of online education companies combed by the economic report reporters, 9 good ones in the future, New Oriental, ape counseling, VIPKID and so on, are located in Beijing, and 4 of them are in Shanghai. Not long ago, NetEase listed in the United States had a way, although NetEase was headquartered in Hangzhou, but NetEase was registered in Beijing.

The company is the only exception to the head office. Its headquarters is in Hefei. HKUST is a leader in the field of educational informatization and AI. It is entering the field of teaching through acquisition and cooperation. It records 30 educational APP, including two products listed in Beijing and Guangzhou joint ventures.

From the record information, we can also see some strategic signs of online education companies. The Internet giant byte beating has entered the online education, and the first online product is Gogokid and Aikid. Since then, the byte jump has been exposed to another product of the internal test, tangyuan English. This APP has been completed and filed in January this year.

Nail and enterprise WeChat are the two secret educational giant online, ranking the list. These two business communication products have been embedded in educational modules, which have first-class bottom technology and huge user base. In twenty-first Century, the economic news reporter was informed that during the epidemic period, many regions in China were preparing for free use of nails to carry out live broadcast teaching.

Competitive trend of online education

At present, the completion of the 1928 education APP has been put on record, which makes people worry that the competition is so dense. Online education as an Internet format, so many players can survive all the time?

"The education industry has no network effect, so it can not win the winner. Even if the future is better and the New Oriental is bigger, it will take a small share in the whole teaching market. Online mathematical thinking enlightenment product, founder of pea thinking Zhang Jie said.

Zhang Jie told the twenty-first Century economic news reporter, "the so-called network effect" means that when a new member joins a network, the value of the whole network will increase. Such as taxi software, the more passengers choosing this taxi software, the more beneficial it will be for drivers, and vice versa. Therefore, we only use this kind of taxi software is enough.

"But education is not the case. Does an online educational institution add one student to other students? Not necessarily, they may still be competitive. This determines that online education is not a winner taking all. " He said.

In fact, quite a number of educational APP are actually localized products. For example, Anhui Wan Xin Jin Zhi Education Technology Co., Ltd. has recorded 35 APP, but most of them are mobile campus APP in primary and secondary schools in Anhui province. This is a subsidiary of Anhui Xinhua Media Co. The local educational system is rich in resources. China Mobile has recorded 38 APP, most of which are educational informatization products developed by local Mobile Corporation in the provinces.

The epidemic has given rise to unexpected opportunities for online education.

"At present, the education department puts forward online learning, which is conducive to strengthening students' online learning behavior. Some large offline training institutions are also using online services, and further push students' behavior habits onto the line. In addition, some online organizations are also trying to increase services to do some free courses. Who told Chen Xiangdong, the founder of the twenty-first Century economic report?

Large class live webcam is the most popular online educational track. "When more and more parents and students choose online education, in a sense, traffic will become cheaper." Chen Xiangdong said.

Chen Xiangdong predicted that for the online education institutions on the head, the winter vacation classes in the first quarter of 2020 basically ended, the epidemic may not have any impact on the performance, and the performance impact may appear in the second quarter, but may appear more clearly in the third quarter. "Of course, I do not think that the marketing cost of online education institutions will be greatly reduced because competition is still there."