China News Service, Beijing, November 17 (Zuo Yuqing) After a series of salary cuts, layoffs, and suspension of business, the giants of training institutions that used to be compulsory education (K-9) began to announce that they would terminate the provision of subject training. service.
"The Dunkirk-style retreat of the education and training industry", some industry insiders commented on the behavior of the current training institution giants, "but unlike Dunkirk, they may not come back."
Evacuate
K-9 business collectively
114 days after the implementation of the "double reduction" policy, on November 15, New Oriental, Xueda Education, and Gaotu successively issued announcements stating that the domestic K-9 (compulsory education stage) subject training services will be terminated before the end of 2021.
"For the fiscal years ending May 31, 2020 and 2021, the total revenue generated by New Oriental's K-9 subject training services accounted for approximately 50% to 60% of the company's total revenue for each fiscal year." New Oriental said that it expects After the termination of the service, it will have a significant adverse impact on the company's total revenue for the fiscal year ending May 31, 2022 and subsequent periods.
After terminating the service, New Oriental shifted its focus and resources to educational products and services unrelated to K9 subject training services, such as exam preparation courses, adult language training courses and teaching materials.
At the same time, it will continue to explore new business opportunities and growth initiatives.
At the entrance of New Oriental, parents are waiting for their children to finish school.
Photo by Zuo Yuqing, China News Service
Before that, Good Future stated on the 13th that the domestic K-9 subject business will end on December 31, 2021; New Oriental Online announced the termination of the online K-9 subject as early as October 25 Class training services.
On the 16th, NetEase announced its unaudited financial results for the third quarter of 2021, and stated in the financial report that in order to comply with relevant regulatory requirements, NetEase Youdao expects to terminate its subject-based extracurricular training business in China's compulsory education stage by the end of 2021.
NetEase stated that NetEase Youdao has further enhanced its position as an educational technology provider and has steadily developed STEAM courses, adult education and smart hardware businesses.
Even in small cities where large off-campus training institutions such as New Oriental and Good Future have not sunk, the storm of supervision is also coming.
"We are talking about changing jobs here." Qi Juan (pseudonym), who runs a small English training institution in a fifth-tier city, told Chinanews.com that the local government will no longer issue relevant licenses to her next year.
Previously, she once believed that the market had "rigid demand" and that the policy had little impact on small cities.
"What will happen in the future?" When asked this question, she did not answer.
Where is the way?
Although many companies have begun to transform and deploy quality education and adult education, for new entrants, how to occupy the market and even reproduce the glory of the K-9 business at its peak is still a difficult road.
In the painful divestiture of the K-9 business, industry executives are also imitating.
"I personally plan to go to the mountainous area to support education for 1-2 years after the finishing work, and make some contributions to the common prosperity of the country." On September 13, after confirming that Dongfang Youbo decided to completely shut down the K12 business, New Oriental Online Zhu Yu, vice president and CEO of Oriental Youbo, announced his personal whereabouts.
Prior to this, Gaotu issued an announcement on August 17 stating that the company's vice president Liu Wei resigned due to personal reasons, which will take effect today.
Under the pressure of institutional transformation, Yu Minhong's transformation live broadcast is also "hot."
Intercepted from New Oriental WeChat public account.
"Nearly 80,000 sets of idle desks and chairs were donated to rural schools." This move by New Oriental was regarded as a "decent exit."
Subsequently, Yu Minhong said in the live broadcast on November 7 that New Oriental will withdraw the rent of 1,500 teaching sites and send at least 80,000 sets of desks and chairs.
"New Oriental is to public welfare, it is also like a truck on the highway, carrying everything it can carry and driving to the distance." However, in addition to public welfare, can the poetic red truck carry New Oriental to further distances ?
Speaking of future plans, Yu Minhong said that New Oriental will set up a large-scale agricultural platform that will help hundreds of teachers to sell goods through live broadcasts, but this has caused a lot of controversy.
Live broadcast of cross-border agricultural products?
Copy Li Jiaqi?
In the face of doubts from the outside world, on the evening of November 14, Yu Minhong responded in the Douyin live broadcast room, denying that he was "jumping from one industry that makes quick money to another industry that makes quick money."
"In fact, no industry is easy to do."
He also said that New Oriental would learn from Li Jiaqi or Wei Ya if it brought the goods live.
New Oriental will live up to expectations and work hard to move forward in the field of agricultural products live broadcast that it is not familiar with.
Do you have any suggestions for the current transformation of the education and training industry?
(over)