currently has 15% online education companies have closed down or about to close, and another 70% are at a loss, the core is the business model is not clear.
recently released its first earnings report after the listing, the industry mixed with 51Talk, and several online education start-ups were on the verge of bankruptcy due to financing difficulties……
one, K12 online education was originally expected by investors
based on the domestic extra-curricular tutoring rate, even in accordance with the annual per capita expenditure of 3500 yuan of conservative calculation, the market size is at least 500 billion or more; and the next 3 years of CAGR is expected to reach 20%.
online education in the target population penetration is low, significantly enhance the space
K12 education market size 500 billion, showing a long-term large and diverse industry pattern; originally carrying the mission of the transformation of online education company after the capital blitz, is a dilemma in the start-up, has no new giant in expectation.
three, Freemium model is not applicable in the education sector, commercial path exploration bottlenecks encountered
What’s wrong with
two, whether content providers or platform providers, most of them do not solve the user’s real pain point, but stay in the surface demand
takes the primary and secondary school students in the K12 phase as an example. The number of online users grows rapidly, but the total number of students in the corresponding primary and secondary schools is only 10.64%.
K12 online education startups,
1. K12 extracurricular training market size, pattern of long-term dispersion, online education companies have good opportunities
competition pattern has been highly dispersed for a long time, and the total market share of Top 3 in domestic extracurricular training industry accounts for < 3%, and Top10’s accumulative market share is < 4%; and the basic chain mode is mainly offline.
At 123 million
China stage K12 users have two pain points: first and foremost, win in the competition of the scarcity of educational resources "knockout", the decisive entrance examination, to write Mathematical Olympiad, English, essay contest prize. Secondly, to enhance practical application ability. For example: in English learning process, can enhance listening and speaking ability; in mathematics practice, can exercise logical thinking ability.