Under the COVID-19, the macro & micro perspective of China’s online education industry.
The Covid-19 has been the catalyst for online education industry. At a macro level, this offline-to-online movement has boosted the flourish of online education; However, at a micro scale, this trend will accelerate the polarization of online education enterprises, and ultimately, lead to an industry reshuffle.
According to IResearch group’s predictions, due to the epidemic, the growth rate of China’s online education market in 2020 Q1 will drop sharply, in comparison with the last year’s growth tendency. The market size of 2020 Q1 is expected to be around 68.06 billion RMB, with a growth rate of 3.9%.
2019 Online Education Review: Rapid adoption of online learning in K12 education
As the post-80s and 90s constitute the majority of new parents in China, parents’ focus on quality education has greatly promulgated the average education expenditure in each Chinese families. The natural familiarity with the internet for the 00s generation, the hardware upgrades, the widespread of advertising campaigns, have fasten the development of online industry, and lead to the k12 parents’ slow, but steady acceptance of online learning. In 2019, the proportion of K12 education has increased to 21.3%, while the proportion of offline higher education & vocational training have dropped to 75%. IResearch predicts that by 2022, the proportion of K12 training will increase about 28%.
The Internetization of B2C, B2G, B2B and their different developmental stages
Generally, the education industry are labeled with certain characteristics, such as, low-degree of internetization, slow adoption of new features. However, greatly impacted by technological progress, changes of consumer demand & public health issues, the penetration of online learning into everyday teaching & learning has been strengthened.
There are three broad categories in education industry: 2C(To Customer), 2G(To government), and 2B(To business). Among them, 2C is the most market-sensitive type, as users are constantly seeking for high-quality products; 2G could be characterized as politic &finance-oriented type, where groups of high-standard teachers & decision-makers gather together. Currently, most schools implement online technology, software, management systems to support offline teaching, and massive adoption of online learning is still underway. Lastly, most 2B focuses on online management system, and aims to develop a complete set of online solutions in the future. The underlying motivation & logic behind the three categories are different at root, so we should put more consideration regarding the business patterns.