The article is divided into two parts. The first part has the following questions:
What kind of user value does the industry provide? Who are the core users of the industry? How does the business model make money? What will happen in the future?
Next share:
What is the market and competition? What are the key factors to promote the development of the industry? What are the links in the industrial chain from the source to the terminal?
1. What user value does the industry provide?
The core demand of education is to transfer knowledge and cultivate quality. The online education industry has broken the time and space restrictions and the original market hierarchy. Due to the epidemic in 2020, the online education industry is accelerating, and the entire external environment and users are forced to accept the online class mode.
What value to provide users has largely solved the problem of lack of high-quality educational resources, that is, educational equity.
Online education products are not only adjustable in class time and unlimited in space, but also lower in price than traditional educational institutions.
Generally speaking, the coverage of exam-oriented knowledge products will be greatly improved.
2. Who are the core users of this industry?
The biggest user feature that distinguishes the education industry from other industries is that the education buyers below k 12 are not users. Therefore, for enterprises in the education industry, parents and children are two types of users, which not only need to solve the pain points of parents, but also need to solve the interesting and exam-oriented education problems of young children.
K 12 online education industry users distribution, in which the main user groups are in third-and fourth-tier cities, and the main users are from the sinking market. However, at present, the heavy users who really pay are the parents of the post-70 s, basically in first-tier cities, with a bachelor's degree or above, and the sinking market in the later period will be the main battlefield.
Education investment mainly depends on household disposable income, which determines the stratification of teaching and training industry. As far as third-and fourth-tier cities are concerned, the main feature of some users is that their income is not high, but there are no other cost pressures, especially renting houses and mortgages. Their demand point is the knowledge transfer of high-quality education, and the requirements for service quality are not high. Products and services that are suitable for such user groups and pay attention to price and standardization;
In addition, some users have good incomes and more disposable funds. I hope their children can receive more personalized teaching and have a demand for localization and personalization. In view of the strength of the organization, whether the teacher is a well-known teacher, personalized teaching, high requirements for hardware facilities. For this kind of users, focus on teachers and personalization; Price is not the core factor.
In addition, parents' education and guidance also need to be prompted in the classroom, and children's wishes have also become parents' consideration in measuring the situation.
The main purpose of parents applying for k 12 subject guidance is to let children master knowledge points and skills and consolidate learning effects. K 12 user insight data report in 2020 shows that parents of primary school students pay more attention to their children's learning methods. The main problems of primary school students are short concentration time and playfulness at a young age. With the growth of children's age, the demand for concentration and subject guidance has risen sharply, especially in the crucial year from primary school to junior high school, junior high school to senior high school, and senior high school to university, parents feel more anxious.
3. How does this industry make money?
First, be familiar with the cost structure of the education industry.
Profit = revenue-cost, revenue = number of paying users x unit price, so how to get the number of paying users? Divided into old users and parents who have reported to work. The main indicator data is the renewal rate. What this kind of users can contribute is mainly to help enterprises grow and renew their reports.
The other is a new user. For new users who enter through market and channel promotion, the contribution of experiential courses to the conversion rate accounts for 70%, which is similar to the importance recommended by old users. The main indicator of new users is the conversion rate.
The factors involved in customer unit price are mainly teachers, education financing, company cost and scale.
The current industries are divided into prek, k 12, vocational education, and the classification at different stages is similar. Prek can be divided into subject education, quality education and general education. K 12 is divided into comprehensive online calibration, vertical subdivision track, tool support, etc. Vocational education is mainly based on examinations, supplemented by other language counseling, and there are some tools, such as Youdao dictionary.
So how do you make money?
1) Online 1V 1 Mode: This mode needs a lot of teachers. At present, VIPKID and 5 1Talk are mainly used for one-on-one tutoring. At present, the main students are high-income users in the downtown market. The main demand point is to train excellent students and make up the difference. One way to make a profit is to reduce the cost of teachers or increase the unit price of students, and the other is to increase the renewal rate of students. The external competition is an AI interactive course, which has just begun and belongs to the promotion stage of curious people. Of course, I think companies can also expand AI education courses. If the cost of teachers is reduced, it will lead to higher teacher turnover rate and lower course quality.
2) Online small class: Small class mainly depends on the class capacity. The larger the class size, the greater the profit rate, but after exceeding a certain number of students, the growth rate drops even more, which mainly tests the degree of product standardization and reduces the performance cost. In addition, the cost of teachers is also one of the influencing factors.
3) Online large classes: The main reason is the large number of students, the high cost of obtaining customers, and the continuation rate is also one of its important indicators. Large classes mainly focus on the total value of the user cycle. Increasing the number of applicants, reducing the cost of obtaining customers, finding a low flow area, improving the conversion rate of entrance classes and overtime renewal rate can improve the income of enterprises.
In addition, there are cases of tutoring in large classes and small classes, which have been profitable at present.
4. What will happen in the future?
As far as the overall trend is concerned:
In the k 12 industry, policy repression is slowly rising; The market situation and policies for the development of quality education are relatively supportive. The teacher training supply industry is on the rise. The online course industry is developing rapidly.
Enterprise development:
Enterprises pay attention to product delivery experience and data support capabilities. On the one hand, product delivery experience is software, on the other hand, teaching and research strength also needs to be accumulated. In addition, in terms of traffic, on the one hand, we should look for traffic depressions, and on the other hand, we should look for high-quality channels in the delivery channels.
In the future, online education will still be driven by the supply side, and the supply side personnel need to be supplemented urgently. AI+ is also the direction of expansion. The company's organizational structure, faculty and content research and development capabilities determine the company's long-term competitiveness.
The core logic of the Internet industry is traffic, and trading scenarios can migrate to each other. However, the uniqueness of education and training lies in that each transaction needs a specific scene, and it is difficult to transfer between different scenes. Consumers of education and training need to think more carefully. Therefore, online education will return to the essence of education in the future. As a content industry, the supply of high-quality content is the core competitiveness of education.
Above, I hope to give you some help.