Running out of a healthy economic model and being able to survive without financing renewal is a top priority for companies.

Editor’s note: This article is from the WeChat public account “燃 财经” (ID : rancaijing), author Tang Yahua, editor Wei Jia .

Child programming, can't edit?

The children’s programming industry has been uneven recently.

First, Watermelon Maker cut staff, Miao Xiaocheng announced that it was acquired by Sanqi Mutual Entertainment, and then Xiaobox Technology (former job box) disbanded the programming team. VIPCODE was passed on in the acquisition negotiations. All signs indicate that the once darling of capital has also suffered in the winter of capital and teaching practice.

Industry programming cats, walnut programming, proud dream programming, watermelon maker and other head companies play differently. Recording, broadcasting, one-to-one, small class, large class and other modes of exploration are all in Going hand in hand, but high customer acquisition costs, slow market penetration, and non-required courses make many companies struggling. “The market is not eliminating products, it is eliminating economic models,” said one practitioner.

In this case, companies will open their franchise and walk into the campus one after another in 2019. In fact, the short chain characteristics of the education industry and the unique attributes of the campus have restricted the expansion of the B-side business. The force B-end cash flow antidote may also become the “poison” of the enterprise.

A number of interviewees told Ran Cai that over the past few years, the market for children’s programming that has been spawned by capital has been oversupply, which has intensified vicious competition and low-level competition. Most companies ignore the real needs of users and are eager to go horse racing, stifling industry innovation and high-quality development. How to run through the unit economic model and be able to make blood by itself without relying on capital will be the next priority for enterprises. The industry’s reshuffle is accelerating and eliminating invalid supply. In the long run, it is the industry’s gradual return to value.

An education expert said, “The programming industry is valuable, but most companies can’t wait that day.”

Redundancies, mergers and acquisitions, shrinking, Children’s programming is undergoing major changes

Recent days agoXiao Yuan, an employee of Xiaobox Technology, was suddenly told that the company’s programming business, “Little Elephant Programming”, had not been done because of the company’s overall strategic adjustment. He told Ran Cai that, according to the company, programming was not the company’s main business and was cut off. “The company must be prepared to be underfunded in the next few years.”

In the vein, former employees of Xiaobox Technology claimed that “the company has laid off 40% of its employees. Because the business model did not work, the programming department was directly dismissed, and the BD department and counselling center were the hardest hit areas.” Earlier, the staff of Xiaobox Technology responded to the media saying that “normal adjustment and optimization will be made at the end of the year.” However, when Ranjing Finance verified with Xiaobox Technology, the other party stated that it would not respond to the matter for the time being.

Miao Xiaocheng, another children’s programming company, announced on January 6 that it was acquired by gaming company Sanqi Mutual Entertainment.

As early as November 2019, Miao Xiaocheng was reported to have suspended online teaching. Parents could not contact the teaching teacher, and the student membership fee could not be recovered. Later, Miao Xiaocheng’s official website announced that it is currently negotiating with listed companies for acquisitions, and it will take 1-2 weeks to suspend classes.

Also in late November 2019, the watermelon maker who just completed the B round of 150 million yuan financing was exposed to large-scale layoffs. Later, watermelon maker replied that this is an adjustment based on the company’s strategic planning. About 15%, reasonable compensation was also given to employees who left.

In addition, Rancai learned from a practitioner and an investor that currently VIPCODE is also negotiating the acquisition, but the founder of VIPCODE has not yet responded to Rancai.

In the short term, a number of well-known programming companies in the industry have hit the rocks one after another, and this once-popular track reversed for a moment.

In 2018, according to incomplete statistics, there were more than 50 children’s programming financing, and the investment and financing scale exceeded 2 billion yuan. There are hundreds of companies that get financing on the track, and all offline training institutions and online children’s programming add up to more than 2,000.

Children's programming, can't edit?

CVSource investment data shows that starting in 2019, financing events in the field of children’s programming education have decreased sharply. At least, only one financing event occurred in a month. At the same time, some data show that until 2019, the penetration rate of the children’s programming industry is 1.5%, and the entire market is still in the early stages of cognition.

Children's programming, can't edit?