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wrote a column · Jan 19, 2022 22:29

Online Education 2021: Shrinking, Defeating, and Transforming

This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg
In 2021, as soon as “online education” is mentioned, everyone will sigh silently.
Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market.
However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders.
Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another.
Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence.
Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.”
However, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a good time to stop thinking deeply and actively explore the future.
Those education and training institutions that have entered 2022 and are still able to “not drop the table” are expected to enjoy the new dividends brought by the reshaping of the industry.
1. Total shrinkage
From an objective point of view, “total contraction” became a basic fact of the online education industry in 2021.
The first is the contraction of business.“Bullet Finance” noticed that leading education and training institutions such as Good Future and Gaotu have announced that they will stop or sell compulsory education subject training services before the end of 2021.
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
The second is a reduction in the number of personnel.According to “Bullet Finance,” news of major layoffs has been revealed one after another for companies such as Gaotu, Pea Thinking, Good Future, Head Education, and 51Talk.
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
Third, the size of the campus has shrunk.Since July 2021, companies such as Gaotu and Good Future have all begun to close some local centers.
For example, Gaotu's 13 local centers will be closed by August 1, 2021; 8 of the 13 local centers of Good Future's Learning and Thinking Online School will be abolished; on September 13, 2021, Oyama Education issued an announcement stating that the group has further closed 16 self-operated teaching centers and has decided to close 20 self-operated teaching centers by the end of September 2021.
What is even more helpless is that if education and training institutions barely have a bit of control at the level of contraction mentioned above, then they almost completely lose their right to speak out when it comes to financing issues.
According to “Bullet Finance” statistics, there were 241 financing incidents in the education industry in 2021, a decrease of 2.03% from 246 cases in the same period last year; the total amount of financing was 19.813 billion yuan, a decrease of nearly 70% from 64.333 billion yuan in the same period last year.
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
In fact, education and training institutions cannot control not only financing, but also stock prices.
According to “Bullet Finance” statistics, as of the close of trading on January 18, 2022 EST, the stock prices of listed companies such as Park Sun Education, Elite Education, Gaotu, 51Talk, Reith Education, Good Future, Together Education, Dane Education, and Manager Education respectively plummeted from their all-time highs.
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
Due to the continued decline in stock prices, some education securities were “yellow cards” from the NYSE or NASDAQ.
On August 4, 2021, Elite Education announced that it had received a warning letter from the NYSE: for 30 consecutive trading days, the minimum trading price of the company's common stock was less than $1 per share, which did not meet NYSE compliance standards;
On December 14, 2021, Dane Education announced that it had received a notice from NASDAQ on December 10, stating that the closing price of its ADS was below $1 per share for 30 consecutive working days and did not meet the requirements of the “Listing Rules”;
On December 21, 2021, 51Talk announced that it had received a notice issued by the NYSE on December 20. The notice stated that 51Talk's total market value and shareholders' equity fell below compliance standards.
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
2. Accelerate transformation
However, in the face of overall contraction, many education and training companies are hoping to transform their business to reverse the decline.
On the path to transformation, some companies are targeting quality education. On July 28, 2021, Ape Counseling announced the layout of quality education and launched the first scenario-based STEAM science education product “Pumpkin Science” in China. This is the first STEAM science education product in China that includes in-depth application of AI intelligent voice functions.
On August 6, 2021, New Oriental established the Beijing New Oriental Quality Education and Growth Center. It has six major sections: the School of Art Creation, the School of Humanities Development, the School of Language and Commerce Literacy, the Natural Science and Technology Innovation Space Station, the Intellectual Sports Training Center, and the Quality Parent Wisdom Center.
On September 1, 2021, Learning and Thinking Literacy Center, a quality education brand under Good Future, announced the launch of the Learning and Thinking Literacy Center. Its products cover modules such as science, programming, puzzle, stories, and eloquence.
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
In addition to the popular track of quality education, there are also many companies that focus on adult education.
On March 3, 2021, NetEase Youdao announced the establishment of the YouDao Adult Education Division and upgraded the “NetEase Cloud Classroom” brand. The division integrates businesses and teams such as YouDao Premium Course Adult Course, NetEase Cloud Classroom, and Chinese University MOOC. In the future, it will concentrate resources to develop adult courses.
On July 7, 2021, Good Future launched the adult education brand “Qingzhou”. It has three sub-brands: Qingzhou Postgraduate Assistance, Qingzhou Full Score, and Qingzhou Study Abroad, covering the three fields of postgraduate studies, language education, and study abroad.
On August 7, 2021, VIPKID said that the company's VIPKID adult course is in the final stage of closed testing and will soon be launched for students.
Furthermore, with the introduction of relevant national policies, vocational education has quickly become a popular transformation direction favored by many institutions.
On October 21, 2021, Onli Education announced that it will launch postgraduate services, including in-service postgraduate studies, postgraduate courses, supervisory companion services, one-on-one private classes, etc.; on October 21, Xueda Education and Dane Education announced that they have formed a long-term in-depth business strategic partnership. Their cooperation includes adult vocational education, youth programming, and intelligent robot education.
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
In addition to these popular tracks, there is also enterprise transformation intelligent education hardware.On July 6, 2021, the Zebra App released the educational hardware product Zebra Logical Thinking Learning Machine; on October 28, Lele Classroom announced the launch of the Lotte Learning Machine on its official WeChat account; on December 10, New Oriental Online and Tmall Genie launched the “New Oriental Online Dictionary Pen T1”.
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
What's more, it directly transforms smart education.On October 20, 2021, Ape Counseling announced its entry into the TOB intelligent education market, and will soon launch a new educational technology brand “Flying Planet” for the government and schools; on October 20, the news of a further increase in B-side business layout came out, and its smart education services have now been launched in many regions across the country; on November 3, Xuedai Education and Grape Intelligence reached a strategic cooperation to explore future education models.
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
What is most surprising is that apart from transforming education into other segments, some organizations are also targeting non-education industries.
Take New Oriental as an example. As early as October 28, 2021, Xindong conveniently established its subsidiary Oriental Choice (Beijing) Technology Co., Ltd., with a registered capital of 10 million yuan. The legal representative is Sun Dongxu, CEO of New Oriental Online. The business scope includes the sale of fresh meat, eggs, aquatic products, fresh fruits and vegetables.
On November 7, 2021, Yu Minhong said during the live broadcast that New Oriental plans to set up a large-scale agricultural platform in the future. At that time, he will bring goods through live broadcasts with hundreds of teachers to help sell agricultural products and support rural revitalization.
In addition, there are also institutions testing the waters in the catering industry. On June 25, 2021, Xuedai Education's foreign investment added a Beijing Zhuoji Coffee Co., Ltd., which is 100% owned by Xuedai Education; on July 20, some media claimed that Xuedai Education issued an internal letter announcing the establishment of the Group's new business division, the establishment of a coffee catering center, and appointed Liu Weijie as the director of the coffee restaurant center, which is fully responsible for the operation and management of the coffee restaurant center.
3. Decency and embarrassment of leaving
In fact, in this unprecedented winter in the industry, not all education and training institutions will consider transformation to survive; in the end, some chose to withdraw from the education and training industry in a relatively decent manner.
The organization of the Children's English Track first said “goodbye” for the first time.
On August 5, 2021, GOGOKID officially released a “Letter to Parents”, deciding that from August 5, 2021 (including August 5), GOGOKID will completely suspend live classes and cancel scheduled classes; on December 7, DaDa English announced that it will completely stop all foreign teacher services at 24:00 on December 31, 2021.
Some organizations on the K12 track have also said goodbye to users one after another. On August 25, 2021, Gangde Education announced that it will close all stores on August 31. Parents who have not yet applied for a refund are requested to contact the relevant staff to apply for a refund; on August 27, Jierui Education said that before the fall course starts, it will stop the fall course in Beijing and fully refund the student's unspent tuition fees, which are expected to be refunded to parents' accounts over 10-15 working days.
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
In addition, ByteDance's “You Shoot One” announced on August 5, 2021 that the company will completely suspend live streaming classes, cancel follow-up course schedules, and refund the remaining class hours until 24:00 on August 2, 2021 to all parents.
So far, these high-profile institutions and projects have all said goodbye to people in a decent and responsible manner.
However, in addition to these decent exits, there are also education and training institutions that ended up leaving the venue embarrassingly by detonating lightning.
These explosive education and training institutions have appeared on the K12 subject education circuit.
On August 31, 2021, Giant Education publicly stated that due to operational difficulties, it will not be able to continue providing teaching services to students in the fall, and it is no longer possible to refund all students. Students' remaining class hours can be transferred to institutions such as Gaosi Education, Tong Cheng Tong Mei, Walnut Programming, and Rice Yimi Counseling.
On October 12, 2021, Light Education announced that the original one-on-one course under Light Education will be suspended from now on. All unspent one-on-one courses for students can be exchanged for various courses on platforms such as Learn & Speak You Online, Learn & Think Online School, Learn & Think Light Course, Onion Academy, and Speak English Fluently.
On October 13, 2021, Elite Education publicly stated that the company faced huge operating difficulties and was unable to maintain normal operations. It suspended operations on October 12, and decided to completely transform its non-disciplinary business.
Lightning breakers also appeared at the Children's English Circuit. On August 23, 2021, Whale Class publicly stated that the refund applications submitted so far have been overwhelmed by institutions, making it difficult to support such a large number of refunds in the short term. Users are advised to prioritize continuing to study their new compliance courses or choose exchange courses.
There is no shortage of institutions on the quality education circuit that ended in a flash. In early July 2021, a netizen broke the news on Weibo that Aomeng Programming may have exploded. The netizen posted a chat history with Aomeng Programming teacher. The teacher said that he had received a notice that the company was going out of business, confessed that he had not received his salary for 2 months, and advised parents to defend their rights.
In addition, there are agencies such as Fun Eloquence and Fast Sparring. Without exception, they all claim that the refund applications currently submitted by parents have been overwhelmed by the agency, making it difficult to refund money in the short term. Therefore, this kind of agency can only say goodbye to users in the form of a thunderbolt, leaving a waste of money.
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
4. An unprecedented winter
Whether it is the complete contraction of the enterprise, the acceleration of transformation, a decent farewell, or even a sudden explosion, it is all related to the strong supervision experienced by the industry. Specifically, there are 5 main reasons.
First, regulatory policies at the national level have been introduced frequently, directly causing all institutions to face unprecedented strict controls at the business, financial, and operational levels. According to “Bullet Finance” statistics, from January to November 2021, a total of 56 regulatory policies relating to the education industry were introduced, with an average of at least 5 per month.
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
Second, increasing encryption and strict reporting and punishment have also put a lot of pressure on some institutions, which have had a certain impact both financially and on their brand image.
According to “Bullet Finance” statistics, from April to November 2021, education companies were notified or punished by relevant regulatory authorities in a total of 22 cases, with an average of about 3 cases per month.
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
Third, the frequent spread of the epidemic and domestic epidemic prevention measures in the past two years have put the operating conditions of the institution to the test quite a bit.
According to “Bullet Finance” statistics, in 2021, education companies were stopped by relevant authorities due to the epidemic, a total of 33 cases, with an average of about 3 cases per month.
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
Fourth, repeated platform bans not only restricted the organization at the operational level, but also caused parents to question and worry about the organization's ability to operate for a long time. Ultimately, parents dropped out of school, and the platform was overrun.
Since September 2021, platforms such as Taobao, JD, Douyin, WeChat, and Xiaohongshu have imposed strict bans on training institutions outside of school.
This article comes from “Bullet Finance”, author | Huang Yanhua, editor | Mr. Egg In 2021, as soon as “online education” is mentioned, everyone will sigh silently. Business austerity, sharp staff cuts, school shutdowns, falling stock prices... every word has weighed heavily on this industry that once reached the size of a trillion dollar market. However, there are still people struggling to survive in the cold winter. Leading education and training institutions such as New Oriental, Good Future, Ape Counseling, Homework Help, Gaotu, NetEase Youdao, and Master Education have anchored the transformation direction on quality education, adult education, vocational education, intelligent education hardware, and smart education. There are even institutions testing the waters for live streaming delivery and catering across borders. Some chose to stick with it, while others chose to say goodbye. Over the course of this year, we have seen famous education and training institutions such as Gangde Education, Jie Rui Education, Xueyiyou Education, and Oriental Youbo leave the market in good standing one after another. Also in this year, we unfortunately saw the “explosion” of many celebrity education and training institutions, such as Elite Education, Giant Education, Light Education, Whale Class, Randy's English for Kids, Fast Sparring, Dream Programming, and Fun Eloquence. Behind this “online education picture” is the intensive introduction of regulatory policies, harsher notifications and penalties, widespread outbreaks, successive bans on platforms, and the ability of enterprises to operate without withstanding this “big test.” However, the so-called “unbreakable”, after several years of fighting in the industry, education and training enterprises represented by the New Oriental and Good Future may now be ushered in a pause and integration...
Finally, in the all-round strict control from the top down, many institutions were unable to keep up with their operational capabilities and adaptability; in the end, they could only regret leaving the market. It is important to know that most of the mine-blasting agencies mentioned above have publicly acknowledged that due to their own poor management, the capital chain was broken, and eventually they were unable to continue operating, and also owed large amounts of employees' wages and tuition fees to parents.
Looking back at 2021, what happened in the online education industry made people sigh. We have seen that education and training institutions eventually chose to withdraw from the battlefield due to unbearable operating pressure, poor business transformation, etc., and the education and training institutions that have always stuck to it are clearly ready to “make harder money.”
The “crazy era of education and training”, where money was burnt for expansion, marketing-driven growth, and relatively abundant cash flow, and expected to make a lot of money, has completely come to an end, and the people who stayed behind seem to have become “warriors” who have experienced hundreds of battles. While waiting for this unprecedented winter to pass, they are moving cautiously and expectantly towards spring in new businesses.
*The title in this article comes from: Visual China, based on the RF protocol.
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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