With the frequent favorable policies, more and more educational institutions will enter the adult training track in 2021. As of March 7, according to incomplete statistics from Beijing business daily, many head education companies, including New Oriental and Netease Youdao, have officially announced their new project business in the field of adult training. Among them, chalk education completed a round of financing of US $390 million not long ago, and another organization, nitrogen education, also received a round of financing of several hundred million yuan. With the vigorous development of the whole education and training industry, more and more institutions are aiming at the broad field of adult training and want to get a piece of the market. With the popularization of lifelong learning concept and the promotion of vocational education policy, the market of adult training will further develop.
Competing for entry
On March 3, Netease Youdao official announced the establishment of “Youdao adult education business department” to transfer the original Youdao adult learning course to Netease cloud classroom. At the same time, Netease cloud classroom will be positioned as a systematic learning platform for lifelong learners. This measure is not only a business adjustment carried out by Youdao internally, but also means Youdao’s determination to increase the adult education track. Earlier, an app store called “extraordinary classroom” was launched. According to its official website, “extraordinary classroom” is an adult education brand of online education institutions’ homework help.
From the perspective of curriculum content under the adult education business of the two institutions, “extraordinary classroom” currently covers four types of courses: English, teachers, accounting and public examination; while Netease cloud classroom’s curriculum content is broader, including not only adult examination related courses, but also career oriented practical courses such as data analysis and copywriting. For most adults entering the workplace, it is necessary to recharge after work, and the organizations are aiming at this demand and layout related businesses.
It is worth mentioning that, in addition to more and more new entrants starting to enter the field of adult training, a number of institutions mainly engaged in adult training have also recently obtained large amount of financing. Among them, chalk education, a brand of adult vocational education, has completed a round of financing of 390 million US dollars. Li Yan, vice president of chalk education, told Beijing Business Daily that the financing will be used to expand the scale of teacher recruitment and training. At the same time, the company will also increase investment in teaching research and technology. According to statistics, the main business of chalk education includes civil service examination, institution recruitment examination, teacher qualification certificate and recruitment examination, postgraduate entrance examination and other knowledge training programs. As of January 2021, it has accumulated more than 48 million users, 7.03 million paid users, and more than 900 million practice times.
In addition, another public examination and training institution, nitrogen education, recently received hundreds of millions of yuan of round a financing from New Oriental. According to public information, the business scope of nitrogen education covers civil servants, institutions, teaching and examination, medical examination, military civilian affairs, postgraduate entrance examination and other kinds of public recruitment and examination training, and has nearly 1000 branches in 31 provinces across the country. The upsurge of “public examination fever” makes the expansion and development of institutions more rapid, and also gets the favor of capital.
According to the Research Report on China’s lifelong education industry in 2020 released by iResearch, compared with developed countries, there is a huge gap in China’s adult education supply. It is estimated that the scale of lifelong education industry will reach 148.9 billion yuan in 2023. At the same time, according to the accounting of iResearch education, in 2019, the online education market in China accounted for less than 11% of the total revenue of the education market. Among them, the online revenue of the adult education market accounted for more than 20% of the total revenue, which was significantly higher than that of the minor market.
Ge Wenwei, partner of Duojing capital, said that the penetration rate of the online market of adult training is much higher than that of K12. “In the past, everyone’s attention was attracted by K12, the biggest track, so the financing and investment activity of adult education in the past few years was not high. However, with the recent increase in the supervision of K12 by relevant departments, training institutions are also considering how to balance the risks, so they begin to focus on adult education. ” Ge Wenwei pointed out that, in contrast, adult education and vocational education themselves are very big racetracks, with high entry points and entry barriers, and slow investment results. “In the case of continuous release of regulatory signals, the capital eyes previously attracted by K12 are slowly turning to the adult training track.”
In 2020, K12 online education has become the target of many capital anchors. After a period of rapid growth, on the one hand, the market share has been basically divided, on the other hand, the supervision has intensified, and institutions need business balance to share the risks. At the same time, from the characteristics of adult education and training industry itself, adult training is more suitable for online form. “These three factors make 2021 a year for adults.” Ge Wenwei said.
LV Linlin, the founder of zhimingdeng think tank, is optimistic about the development of training institutions such as vocational education and public examinations this year. “The field of adult training is very broad. From the perspective of policy, the state attaches importance to vocational education and will increase the training for the corresponding groups. At the same time, more and more people are taking the civil service examination, and the market for civil service training will further develop. ” In addition, LV Linlin said that the vocational skills training involved in emerging industries such as it and e-commerce with talent gap will also be favored by users.
Compared with the characteristics of K12 online education with high demand and low market penetration, the high market penetration and low demand of adult training make it more important to pay attention to the logic transformation in organization layout. Li Yan said that the employment demand of college graduates prompted them to choose adult education and training to enhance their competitiveness. “The biggest difference between the field of adult education and training and the field of K12 is that the service object is different. Adult training serves adults, and adults have more clear learning objectives and autonomous learning ability. There are certain differences between the K12 stage and the field of adult education and training in terms of curriculum and after-school supervision service.”
A number of industry experts have also said that if you want to occupy the market share of adult training, you must first solve the problem of teachers. Talents in the professional field are the most scarce in the field of adult training. “For adult training, the challenge also comes from the low rate of re purchase of products by adults. Therefore, if an organization wants to obtain users in one hit, the product courses and teachers provided by it must fit the pain points of users very well.” Ge Wenwei said that the strong orientation of employment and promotion, the problem of professional talents and the expansion of adult courses are all challenges faced by institutions.
But it is undeniable that the advantage of adult training is also very obvious. Ge Wenwei further pointed out, “from the perspective of marketing, adult training does not need the overwhelming advertising effect like K12 now, and the focus may be on social marketing. And once adult training institutions do it in their own fields, it is easy to form a monopoly in their own sub sectors.
Beijing Business Daily reporter Cheng Mingjie Zhao Boyu
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