For both C- and B-end companies, this crisis will become an opportunity for a profound change in the domestic education sector.
Editor’s note: This article comes from WeChat public account “ Time Finance App ” ID: tf-app), author: Jane also
Under the epidemic, it can become another bright spot in the cold winter of the capital market. In addition to the concept of medicine, online education is also one of them. Since the opening of the A-share market on February 3, a number of educational concept stocks, including Chinese Online, Gaole, Quantong Education, and HKUST Xunfei, have reached daily limit for several consecutive days.
Although the official emphasizes that “the school is not suspended”, it is also stated that before the normal start of the winter vacation, online education is not encouraged to start in advance. However, the development trend of the new crown pneumonia is still intangible. Speeding starting gun.
Many platforms, including Ape Coaching and NetEase Youdao, are under tremendous operational pressure or free class delivery, or provide technical support, each with its own plans.
In the eyes of industry veterans, the offline training market has encountered a force majeure halt, and this crisis will become an opportunity for a profound change in the domestic education sector, both for companies on the C-side and on the B-side. Server downtime, client volume soared 5 to 10 times, burned millions of traffic charges a week … become a miracle in the industry in a short time.
Traffic surge, online players usher in a rare window period
On January 29, the Ministry of Education issued a notice to postpone the extension of the school, and also called for “suspended school without suspension”, and plans to open the national network cloud classroom in most regions on February 17.
Ma Jiyong, a senior education investor, told Times Finance on February 4 that due to the severe epidemic situation, it is still a while for normal schools to resume normal teaching. He judged that the online teaching method may continue until March and April. And even longer.
Many K12 online education companies have sensed the opportunity and started to take advantage of it. For example, on January 30th, the question bank APP Ape Coaching announced that it will provide free live lessons to users across the country, Tencent Video specially launched a “learning at home” program, and Netease Youdao will also open up quality courses to the country for free.
An insider who asked not to be named told Times Finance that according to his understanding, Ape Coach spent about 10 million yuan in advertising fees to become a special partner for the Spring Festival Evening. Not spending money (effect) is similar. “
“It can be said that this is a once-in-a-lifetime time. Now online education institutions are gearing up and preparing to seize this window period to reshape the industry. Free is a very good way to attract traffic and cultivate user habits.
As we all know, although online education is hot, it is rarely profitable. To