In recent years, the country has been vigorously supporting the development of Internet education, especially when the epidemic hit in 2020, which pressed the "tentative" button for offline education, but it has brought huge development opportunities to online education.

According to data released by CNNIC, from the second half of 2019 to the first half of 2020, the number of users increased by 63.7%, and the number of online education users accounted for 40.5% of netizens. The industry growth trend is obvious.

　　With the blowout development of online education, chaos in the industry has begun to surface. Due to the uneconomic model of one-to-one scale, high customer acquisition costs are a stumbling block to enterprise development.

At the same time, in the face of new growth in the sinking market, brand value and teaching quality are still core competitiveness.

In this regard, VIPKID adheres to the long-term principle, adjusts the strategic layout of the company, polishes products and services, so as to improve the teaching effect and user satisfaction, and achieve endogenous development.

The strategic choice behind VIPKID UE's continuous conversion

　　An epidemic in early 2020 disrupted the lives of many people. For K12 students, in order to "suspend classes without stopping school", they had to resort to online education.

The online class model represented by live class and recorded class has withstood many tests in the past few months, helping students to make a smooth transition.

As one of the industry’s leading online education companies, VIPKID and its affiliated rice online schools jointly launched the "Spring Seedling Program" during the epidemic period: to provide free spring online courses for children who were delayed in school across the country, with a total of 1.5 million copies. The children of medical staff are given priority; at the same time, the online live teaching platform and technology are also open to schools and institutions across the country for free, so that teachers can teach without leaving home.

　　An enterprise without a strategy is like a ship without a rudder, which only turns around in circles.

As early as 2019, VIPKID CEO Mi Wenjuan put forward the strategic goal of "earning one dollar per lesson". At that time, the predicted target time was 2021 fiscal year.

At the same time, in the face of the complicated industry environment, Mi Wenjuan chose to reduce the "burden" and increase the "ability" for VIPKID online English: greatly reducing customer acquisition costs and increasing unit operating profit (UE, Unit Economic model); optimization The size of the organization reduces the number of employees and improves per capita efficiency.

　　It is worth noting that, as an online youth English education platform that first proposed the "1 to 1 real foreign teachers in North America" ​​in the industry, VIPKID announced in August last year that the company’s unit operating profit (UE) has been positive for two consecutive quarters, 90% The first order of the channel to achieve profitability, customer acquisition costs decreased by 45% year-on-year, and performance continued to grow. It was the first to break the curse of “non-economy of scale” of online youth English one-to-one, and became the only domestic company with revenue of tens of billions. A large-scale online education company that has realized UE's continuous improvement.

　　Industry experts said that the continuous positiveness of UE proves the health and sustainability of VIPKID's business model, and also means that its strategic goal of "earning one dollar per lesson" has been achieved ahead of schedule.

VIPKID drives new growth in customer value with refined operations

　　VIPKID has been established for 7 years so far. During these 7 years, VIPKID has achieved rapid growth.

After the "horse race and enclosure", it will inevitably enter the stage of refined operation and management.

At the end of 2019, VIPKID founder Mi Wenjuan emphasized internally that the Internet has entered the “second half” and VIPKID needs to continuously improve management and operation efficiency and continue to build strong organizational capabilities. Only in this way can it achieve “becoming a global leader in youth education” Vision.

　　According to the “2020 China Online Youth English Education Market Report” released by the Chinese Academy of Sciences in June last year, China’s online youth English training market includes one-on-one foreign teachers in North America, one-on-one foreign teachers in the Philippines, small classes, large classes, and light classes. Product model.

Among them, the income scale of the one-to-one model accounts for 58% of the industry's overall income.

In this field, VIPKID's share is far more than other brands combined.

At the same time, in terms of teachers, data shows that more than 80% of parents are willing to choose North American foreign teachers, and VIPKID ranks first, surpassing other well-known brands.

　　VIPKID revealed that VIPKID has always paid attention to the strategic balance between quality, scale and efficiency.

VIPKID pursues "scale expansion with teaching quality", and has successfully won 80% of the online youth English market share and signed more than 90,000 North American foreign teachers.

Beginning in the second half of last year, with the one-to-one track market pattern set, VIPKID began to further pursue operational efficiency and product innovation on the basis of ensuring quality and scale, and in just one year, this order was issued. A satisfactory transcript.

　　At present, thanks to the company's own rich curriculum system, refined operation model and correct strategic choices, VIPKID has become the leading online education enterprise in China.

In the future, VIPKID will use a variety of innovative technologies to enable parents and students to obtain better learning results and better professional services; internally, various innovative technologies will be used to improve the work efficiency and collaboration level of other teams.