Will a super orangutan appear on the educational track?
Education and fitness are very similar in the big logic: they are mainly pre-deposit and sub-sales models, with 1v1, small class, and AI class products; their service effects are strongly dependent on the teaching level of teachers, the company needs Get as many quality teachers as possible and balance the quality of education.
The dark horse super orangutan on the fitness track has subverted the traditional gym sales-oriented model, opening up the era of group gyms; will there be a super orangutan on the educational track? The “early lemon early education” that we recently learned is what we want to do is the super orangutan in early education.
Specifically, the lemon early education replaced the traditional prepaid and class time package mode with “pay-per-view” and landed the first early education center in Yantai in September this year. According to the founder Lian Shimin, the sales volume of the lemon early education Yantai store in the first month has been the same as that of the local Jinbao early education institution, and more than 70% of the users in the store are incremental users of the early education, that is, they have not reported Any other traditional early education brand.
The following will introduce lemon early education from the market, mode and landing.
The second, third and fourth tier cities have become the growth point of the early education market
First look at the market, lemon early education is aimed at the market of the second, third and fourth tier cities. The rationality is that the early education market in the first-tier cities has become saturated, and the second-third-four-line early education center has a large gap and has great development potential.
According to the data released by China’s industrial information in August, the size of the entire early education market exceeded 550 billion in 2018. The proportion of children aged 0-6 who participated in early education training in the first-tier cities represented by the north, Guangzhou and Shenzhen reached 69.76%, while the second line The proportion of provincial capitals and third- and fourth-tier cities participating in early-education training is less than 30%, and the gap that is nearly doubled will gradually narrow in the sinking of consumption and per capita disposable income. Therefore, the consumption of the early education market in the second, third and fourth tier cities is expected to become a new growth rate in the industry.
In addition to the low penetration rate, the increase in the market space of the second, third and fourth lines is also considerable. Compared with young people who do not want to be born in first-tier cities, young people in the second, third and fourth-tier cities have a larger proportion of life in the same city as their parents, and they are less stressed and more willing to raise. In the words of Lien Shimin, “the second child is almost the standard for most families in Yantai.”
But the penetration rate continues to be low, and a large part of the reason is stuck in the price.
Per-time payment + dynamic price adjustment to reduce the unit price and entry threshold, improve the site utilization rate
In the course of market research on lemon early education, 95% of local parents knew about early education and 90% of parents recognized the value of early education, but 70% were rejected by prices.
The annual price of early childhood education brands such as Gymboree and Jimmy is usually between 9k-18k, and the unit price is generally 140-180 yuan/time. For a city with a per capita salary of 3,000, this is not a The choice of the public; according to the Lemon Early Learning survey, the price range acceptable to more parents is 3k – 5k.
How to provide a better service with higher cost performance? Lianchuang Zhang Huimin provided detailed dismantling: from the cost structure of traditional early education, the rent accounted for 30%-40%, and the salary accounted for about 30%. (The sales-oriented early education institution, nearly half of the labor cost was given. Sales staff), operating expenses are around 10%.
What costs can be optimized and do not affect the quality of education? The answer is rent and sales staff.
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According to the people of the world, 500-600 square meters is a common early education venue configuration, but the actual teaching space is less than 300 square meters, and the remaining half is allocated to the game area, waiting area, bathroom, etc. The venue, often idle, has a lower actual value; while Lemon Early Learning optimizes the outside of the teaching space to a minimum, so the rent is lower than one-third of the traditional early education institutions.
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To sell, the single-store staff is mainly based on teachers, and the guest and class schedules are completed on a small program online, supplemented by online customer service staff, and the stores are basically not equipped with sales.
So in the single course price, the price of lemon early education is about 50% lower than the traditional early education; in addition to the cost part that can be optimized, the lemon early education also sets the course price to dynamic and adjustable. The rationality is that, because the traditional early education institution is the prepayment mechanism for purchasing the class time package, the price cannot be adjusted; and the “pay-per-view” course can be time-priced according to the time period of the course, such as lowering the mid-week price. Improve the number of people and site utilization. At present, the full class rate of lemon early education is about 80%.
It is also clear here why early education can be done in the “retail sale” mode of super orangutans. Will discontinuous teaching affect the quality of education? The answer given by Zhang Huimin, a lemon early education association, is: “Education is divided into two types: ‘learning’ and ‘acquisition’. The education of K12 is mainly based on ‘learning’, while the education of early childhood education is ‘study’. Going to be the main. For children aged 0-3, learning and growing more comes from exploration and experience, not knowledge instillation.”
The courses of lemon early education mainly include sports, music, art, and cooking. Under the guidance of the teacher, let the smallFriends complete learning and growth in exploration and experience. Unlike the K12 course, which has a strong dependence on the knowledge points before and after, the early education course is relatively independent in the exercise and promotion of the child’s different ability dimensions. The child will not be unable to follow the content and progress of the previous class because of the absence of a certain class. It is an important reason why early education can be a “retail” model for super orangutans.
About the team, the founder Lian Shimin received a master’s degree in computer science from Yale University. He worked in Baidu and Oracle in technical products. Later, he worked as a business architect in Didi; and Lian Chuang Zhang Huimin graduated from Beihang University in computer science and technology. He has worked in Xiaomi, Baidu, and Innovation Workshops and has experience in serving millions of users.
According to the people of the world, the previous work experience related to cloud computing and his position in Didi made him realize the potential of using the Internet to mobilize dynamic resources. The cost of early education is the teacher + venue, which is reduced by the dual division mode. The teacher’s cost, and then adjust the site utilization rate by pay-per-view, may fundamentally solve the problem of extremely high vacancy rate in the early education industry. Earlier, Lemon Early Learning was awarded the angel round financing of Jiacheng Capital and Qingshan Capital.