2 Million Annual Salary Of Teachers, Old Communities And 60 Billion Valuations: Who Will Learn The Fantasy Drifting Under The Traffic Flow?

Technology war epidemic: the strength of platform economy seven

In the online education field where losses are becoming popular, who can learn to call it "Koi"? The 2019 fiscal year has earned more than 2 billion 100 million yuan, and the valuation of 60 billion yuan has made it the largest online education listed company in the world. Correspondingly, online educational institutions are crying out for money.

This is the best time for online education, because the market has potential users of 200 million primary and secondary school students. It is a trillion market, and the future online institutions will occupy half of the market share. This is also the worst period of online education. The prospect is bright, and growth is obvious to all, but survival is a problem.

Whoever learns is trying to break through the curse of the industry. The carnival of traffic in this epidemic has only boosted its progress.

In 2003 SARS, the New Oriental Wuhan branch closed for two weeks. President Chen Xiangdong did not rest. He took the school management for two weeks.

The epidemic became an important node in the development of New Oriental. It relied on the about 20000000 yuan borrowed by Yu Minhong, founder of the personal relationship, to tide over the crisis and expanded rapidly after the SARS, and developed into an educational group with more than ten thousand employees. Chen Xiangdong also went all the way to become CEO of New Oriental.

In 2014, Chen Xiangdong resigned from New Oriental and set up an online education institution to learn from. This is a company with a golden spoon born, A financing 50 million US dollars, breaking the A round financing record of domestic venture company created by millet. After the birth, who encountered bottlenecks, and its location is "Taobao in the education field", hoping to build an online education service platform, but this Internet platform economy has not been able to run through the education industry.

In August 2017, who was learning "all in" to broadcast live classes, and led the outbreak of the track. Who will learn to list in June 2019? Its earnings report released in February 18th showed that its revenue in fiscal year 2019 exceeded 2 billion 100 million yuan, and the valuation of 60 billion yuan made it the largest online education listed company in the world.

The new crown pneumonia epidemic will become the development node of the education industry. During the epidemic period, online education institutions have welcomed the flow carnival. Tens of millions of students are streaming into online education institutions, which are distributed in various classes such as short videos, live broadcast, media and so on.

But after the carnival, online education institutions will face the old problem of converting free traffic into paying users. At this point, who is learning is a company that many people can't understand. It has been ups and downs in a short time, but it has become the only company that has made large scale profits in K12 online education at present. If you understand who you learn, it will be enlightening for online education to become a "run through" industry.

Tens of millions of students suddenly pouring in

The opening hours of schools have been pushed again and again, and extended holidays allow online educational institutions to enjoy traffic dividends.

It is reported that during the epidemic period, 15 million students were enrolled in the free course, and 5 times more than the total paid in 2019. The number of free classes applied by another head office operation team exceeded 28 million. In the summer of 2019, there were billions of marketing fees for schools, apes, and homework groups.

It should be noted that first, almost all online education companies have introduced free classes, which means that users have the opportunity to freely choose among different platforms and vote with feet. Secondly, most of these free classes are only live lectures, and do not include services such as tutoring, answering questions, paper handouts, etc.

COO, a senior member of the education and training industry and the original New Oriental online, believes that the epidemic can bring tens of millions of users to online education, but not all of them are real customers. The quality of free traffic is usually not high.

Those who study and their high class classroom have also launched free online courses with dozens of platforms such as learning power, central video and micro-blog. In addition, a total of 20 thousand live broadcast classes of winter holidays with a value of 20 million yuan were presented to primary and middle school students in Wuhan. "These courses are committed to teaching content, teaching hours, teachers, including teachers and tutors, which are exactly the same as paid courses," a senior classroom official said.

"Why only 20 thousand copies? This is calculated through internal calculation. If the number is more, it will exceed our service ability and we can not guarantee the quality of teaching. The person in charge said.

There are not only students but also educational institutions under the cable. According to Wang Huiling, who is the head of the school's Micro division, there are more than 70 thousand new users in the micro division after the outbreak. The volume of registration in the past three weeks is 5 times that of last year, and the number of live broadcast on average is 10 times that of last year. The micro division is a tool for offline services such as live broadcasting.

In the afternoon of the thirty year of the lunar new year, Wang Huiling opened an online lecture with 4G signals in his hometown, which resulted in an influx of over 3000 listeners. "I can feel the anxiety and panic of the offline organizations obviously," he told me. He has tried out more than 20 kinds of live broadcasting tools and can hardly sleep every night.

The volume of traffic brought by the epidemic is real, but how much dividends can it bring?

Chen Xiangdong, who learns the founder, told reporters that the number of enrolment in online education spring class may increase, but the more obvious growth is likely to occur in summer classes in 2020.

But more importantly, there are two phenomenal factors: "some of the institutions under the head line will not be taught online, which will shake the mentality of customers who used to think that the line is the only choice." What is more important is the nationwide suspension of online classes, which is equal to the government's behavior in popularizing online education. The above class leader said.

The summer vacation class has always been a "battleground" for the teaching and training institutions. The responsible person said, "although there will be no explosive growth, there will be some subtle changes."

It is precisely because the epidemic traffic will be delayed in the summer classes, which gives the online institutions a rare time to prepare. In the face of the influx of traffic, technology acceptance is not a problem. The class of high school classes in 2018 was around 500, and about 900 people were listed at the beginning of June 2019. Nowadays, the number of small classes is over 1000, and the large class is 3000-5000.

For online education institutions, the urgent need to improve is the organizational capacity and the number of teachers. The industry chain of online education is complicated. For example, who is learning, the teacher is the center of a team. The team members also include traffic team, sales team, tutoring team, content R & D team, video live technology team, question bank team and so on.

Teachers are the lifeblood of educational institutions. In order to ensure the quality of teachers, learning and thinking is to be criticized by the market as "hunger marketing". We must strictly limit the number of classes under the line. In recent years, we have taken the "double division mode" under the line to expand the coverage of famous teachers. In online education, the coverage of famous teachers is magnified, but a class needs to be divided into several small classes and equipped with corresponding tutors for after-school service.

At present, a senior high school tutor who has studied has a monthly salary of over 10000, and tutors more than 200 students. It is worth noting that under the outbreak of the epidemic, both the school and the school have started the recruitment in the spring.

Discard Internet play

Predictably, epidemic traffic will drive online education institutions to continue to grow, but growth is still not enough to prove that online education is a "running through" business model. The key is that online education institutions generally burn money and face industrial losses.

The one thing that people can't understand is that it's a high-profile admission. The Internet game has been almost defeated. After the strategic transformation, it turned over overnight. According to the annual report released in February 18th, who has been the only profitable company in K12 online education, and has harvested a net profit margin of 21%.

The earliest position to learn from them is the online education service platform, which has become the "Taobao in the field of education". It quickly achieved this goal. By June 2017, there were about 600000 teachers who were stationed in the study platform, more than 70 thousand institutions, more than 80 million users, and a monthly GMV of more than 100 million yuan. But the company is losing money.

The profit model to learn is to collect the membership fees and traffic charges of the agencies after the platform is bigger. In order to let fish grow in water, it was a joke to anyone who studied the management level: counting the money of investors, the cost of insider and opportunity cost cost 1 billion yuan in 4 years.

The problem is that it is difficult to standardize the courses on the platform. A staff member told reporters that the first person to learn the platform was only a leather carving class, and there were various guitar lessons, parkour classes, cooking courses and even water maintenance courses.

Chen Xiangdong told the media in June 2018 that he was very anxious at the beginning of his business. "Sometimes he woke up at two or three in the morning and sat in bed staring in a daze. At that time, you didn't make money, and you lost a lot of money a month. At that time, everyone said that the Internet should play like this. The problem is that I haven't really played the Internet in the past few decades.

He told the twenty-first Century economic news reporter, "in my initial vision, I think we should add a lot of services on the platform, such as research and development, teaching and research system, but in that scenario, my cognition is not in place. Now, it seems that we have done too much light, have not done much, and have made many mistakes."

Since 2017, Chen Xiangdong has almost started her own business, and who has learned to separate several 2B businesses from each other, and "all in" has broadcast live online classes. The high school classroom incubated in March 2016, let whom learn to see the hope of transformation.

It was not until June 2018 that Chen Xiangdong introduced the high school classroom for the first time. At that time, there were more than ten million students in the K12 online live broadcast class, and it is expected that the summer class will increase by more than ten million students. In fact, with those who learned in July 2014, that is, second months after its establishment, a video live technology team was set up. In March 2015, who launched the more than 3000 live online interactive technology.

More noteworthy is that the high school classroom has been profitable since September 2017. According to the February 18th earnings report, by the end of 2019, who had learned to scale profits for 7 consecutive quarters, and the net profit margin of Q4 in 2019 reached 21%.

Pan Xin believes that "when the whole industry is losing money, it has never understood who can learn to maintain high growth and profits."

The loss of the whole industry really tests the patience of investors and parents. In order to win the summer school 2019 school battle, the industry said that the school has produced a 1 billion yuan marketing fee, which directly causes the parent company to make a Q1 loss in the next 2020 fiscal year. This is the first quarterly loss in the 10 years since the listing of the largest educational company in the world. Another online education company 51Talk's foreign teacher one to one track was even thought to be losing money. Until 2019, Q3 51Talk announced that the one to one business was profitable for the first time, which has been in the past 8 years since its establishment.

An industry pointed out that if online education can not be profitable, the impact will not be limited to the commercial level. After all, customers care about money instead of learning.

In 2019, with whom to attend the dinner of appreciation, Chen Xiangdong reopened the transformation with whom he studied. The key is to learn and discard the Internet game and return to the operation thinking of the education industry.

Then, who can learn to profit? Can it continue to make profits?

The most effective way: WeChat traffic realisation

In June 2018, Chen Xiangdong summed up why the high class classroom can be explosive growth. He attributed the reasons to four points: the accumulation of video live technology, the accumulation of operational methods, teaching and research, and teaching in a large number of teachers, and a large number of talents were hoarded.

Who was the first teacher to learn from the 600 thousand teachers on the platform? In 2017, who was the key teacher to support and serve the top 5%? As a matter of fact, as of 2019, there were only 149 teachers in Q3 who taught in Beijing headquarters.

"The teachers of online education institutions are the best, because if the same size students, the offline institutions may need 30 thousand teachers, only 300 online institutions," Chen Xiangdong told the twenty-first Century business reporter. "The teachers in the online class are the best, because a good teacher can not go to one to one, and he will maximize his value."

In the third quarter of 2019, 34.6% of the top ten teachers who had done the best performance contributed about 34.6% of their income.

"We did not take the way of school recruitment to train teachers, but to find and find diamond teachers in the industry." The above class leaders said that most of the leading teachers in the high class classroom had more than 10 years' teaching age, from the offline teaching and training institutions or Huanggang middle schools, Hengshui middle schools, and the affiliated schools of the people's Congress.

The teachers who learn from them are paid more than the industry level. "We hope that the average annual income of the teachers will reach more than 2 million yuan, otherwise, these teachers can earn $5 million per year," he said.

The cost of online education institutions is mainly the cost of teachers and marketing. In fact, with the same study, who launched the 50 yuan course in the summer vacation, and also put it on a massive scale in the short video APP, why did we control the marketing cost?

"The same rate of delivery, why the conversion rate is different? The key is to increase each transformation node by 1%, which is enough. The above class leader said.

But it is reported that who learned early low-cost marketing benefited from WeChat community operation. With whom in the early days of the establishment, WeChat began to explore liquidity and provide technical support for nearly 100 WeChat public numbers. Because of the huge financing, other organizations have chosen to go to the mainstream platform to launch, sell electricity, or have their own traffic pools. Until this year, VIPKID and homework Gang began to organize WeChat Ecological Traffic transformation team.

After the founding of the school, a product named U alliance was launched. This is a specialized WeChat channel enrollment service product, which is responsible for the founder of WeChat's "phoenix nest" system. After 2017, U alliance distribution was no longer sold to the inside of the service.

In the fourth quarter of 2019, at the earnings conference, it was revealed that the cost of acquiring passengers in 2019 was about 470 yuan. This figure is far below the industry average. In January this year, a third party report showed that the cost of acquiring online institutions was more than 3000 yuan.

K12 education in China is a vast market, which has potential users of 200 million primary and secondary school students. Chen Xiangdong told reporters that K12 education is a trillion market, and the future online institutions will occupy half of the market share. The majority of these shares will be divided by five or six head companies, that is to say, the K12 online education company will generate hundreds of millions of dollars in value in the future.

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