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Written by Zhang Zhao editor Han Qing
Source: new knowledge of science and Technology (ID: kejixinzhi)
On October 28, 2020, Chen Lin, senior vice president of byte skipping and head of education business, released a message on his social account: at 3:00 p.m. tomorrow, an important event will be announced. The information shown on the picture is about the byte beat education brand launch, with extra emphasis on the word “big”. At 3:00 p.m. on October 29, Chen Lin attended the appointment as scheduled.
On the same day of the press conference, byte beat announced the launch of a new education brand called “vigorously education”. As the first publicly released independent business brand, vigorously education will undertake all education products and businesses under byte beat. Chen Lin, the former head of education business, will be the CEO of vigorously Education.
At the press conference, Chen Lin put forward a new concept of education market – big education. In his own words, “big education is a systematic project. To enable the whole education industry, big education must pay attention to the growth of people in the big era. It literally means that byte skipping should be an educational ecology.
Today’s Internet companies seem to be laying out their own business ecosystem. Alibaba, Tencent, Xiaomi and other enterprises have built their own Internet ecosystem. Now, byte beat also announced to build education ecosystem. But for byte skipping, it is not so simple to do educational ecology.
01 long planned
“Vigorous education” comes from the saying that “great efforts make miracles”. To some extent, it is also the logic of byte beating to do education.
Since 2018, byte skipping has been used frequently in the field of education. Gogokid, opening English, tangyuan English, vigorous classroom, guaguagualong English and other educational products are the best examples. In addition to internal incubation, byte hopping also expands product lines and user territory through investment. From 2018 to 2019, byte beat has invested in and acquired 7 educational institutions, including aikid, the Minerva project, Qingbei online school, good learning and vigorous classroom.
Until today, the byte beat is still enthusiastic about the layout of the field of education. In March this year, the media reported that byte hop plans to acquire two regional offline K12 training institutions, so as to help byte hop build a curriculum research and development system. In May, byte beat released two AI education products: guaguagualong English and guaguagualong thinking. On August 21, byte beat announced the acquisition of mathematics enlightenment education brand “you Pai Yi”, and provided support in technology, brand, flow and capital.
According to relevant media reports, the overall budget allocated to education business by byte jump in 2020 is about 4 billion yuan. Tencent, another well-known Internet company in China, has invested in 23 education companies from 2014 to 2018, with a total investment of about 4 billion yuan.
Zhang Yiming has a lot to do with the heavy investment of byte skipping in the field of education. On March 12, 2020, on the occasion of the eighth anniversary of byte skipping, Zhang Yiming said that he would pay more attention to the field of education and related thinking and planning in the future. The only innovative business mentioned in the open letter was education.
In July this year, Chen Lin, head of the education business, also delivered a speech on the first anniversary of the founding of the byte beat Education Department, saying that he would push everything away and all in education. “Byte leaping will continue to innovate in the field of education with great efforts, great investment and long-term non-stop. He also stressed that the investment in the next three years would not take into account the profit expectation.
From 2018 to now, byte skipping in the field of education has indeed shown “great power”, but few “miracles”.
Take gogokid, the first online English one-on-one platform for 4-12-year-old children. Since gogokid was launched in May 2018, it has been expected by the public. First, it signed Zhang Ziyi to put in an advertisement, and then became the naming agent of variety shows such as “where is Dad going 6” and “wife’s romantic journey”. But by April 2019, gogokid was hit with a lot of layoffs. Chen Lin also mentioned this in an open letter: if you search for “byte skipping for education”, it may appear that “gogokid layoffs”.
In addition, on October 14, 2019, Liu Yong, the person in charge of the byte skipping Qingbei online school, was dismissed. At the same time, a large number of employees left. In a way, this is another setback in the field of education.
This year, aikid, another company acquired by byte jump, also went out of business in March. It can be seen that if a simple acquisition of companies to expand their own education business map, will not help byte beat in the education business to achieve results.
On the whole, whether through acquisition or internal incubation, byte hop has never disguised its ambition to engage in education. This launch of the concept of educational ecology has a lot to do with its previous layout in the field of education. But from the current business point of view, byte skipping in the field of education layout has not yet achieved phased results.
02 go against the wind
Now is in the online education market is generally not optimistic period, byte beat at this time to carry the banner of attack education is surprising.
The online education industry after the epidemic is generally not so good. On the evening of October 21, the share price of suirenxue plummeted by 30%, and the market value evaporated by more than 50 billion yuan, the biggest drop since listing. After the plummeting of who to learn from, a number of mainland education stocks fell in succession, with Youdao down by more than 12%, tal by nearly 7%, Hong En education by 20.88%, fluency by more than 3%, and Reese subject English by more than 4%.
In addition, in February this year, Mingxi big Chinese, the dark horse on the Chinese track, went bankrupt due to financing difficulties. In April, winning education was once again trapped in the broken capital chain. Then, on October 19, this year, the circle of friends was swept by the news that winning education was on its way. Once known as the pioneer of personalized education, the superior education eventually ended up with the company’s headquarters empty and the legal person changed.
Ironically, the epidemic is also the fastest growing year for the online education industry. During the epidemic period, offline education began to seek online transformation, and the online education industry was given more possibilities, and a large amount of capital immediately entered. According to the data, 4238 online education related enterprises were added in China from January to February this year.
But as the epidemic subsides, people are increasingly aware that online education is an insatiable predator of gold. In the context of slowing down the overall growth of the industry, in order to seize the market share, the head players can only launch a fierce battle to burn money. This kind of scene has appeared in didi taxi fight and bike sharing war. The same point is that the market increment is obtained by continuously burning money. However, the results of didi and bike sharing are clearly visible. If enterprises only focus on market share, they will inevitably lose money.
In addition, the data shows that the retention rate of online education enterprises has not changed significantly while the cost of acquiring customers has increased, which is also the reason why the market is declining.
Byte beat chooses to launch its own independent brand of education at this time, and declares that to be an educational ecology, it must have its own card.
Abundant funds are one reason. *** What’s more, Chen Lin also said that he would not consider profit in three years, so byte beat investment in education has enough confidence.
Traffic is also one reason. A large part of the online education industry’s capital expenditure is on marketing. Under the background of capital joining the industry one after another, the sales expense rate of the mainstream online education companies is above 40%. In 2019, the proportion of the marketing expenses of Suntech, fluent English and 51talk to the revenue are 79%, 78% and 55%, respectively, which are all at a high level. But for tiktok beating with the headlines and the entrance of the two major traffic jitter, traffic is the most important thing.
In addition, Chen Lin also mentioned a point at the press conference: “most of the funds in the market flow into the field of after-school counseling, but after-school counseling is actually only a small part of it. School education and family education are also included in the education system.” Therefore, the introduction of the concept of “big education” in the online education market is a good breakthrough for byte skipping, which has been in the field of education for three years but has not made great achievements.
03 new engine of business growth?
Obviously, this conference intends to lay out the whole education ecology, including after-school counseling, family education, school education, education content producers, etc. In addition to Chen Lin’s “one small piece” of after-school tutoring, byte skipping also wants to take a share in other fields.
From the perspective of home education, on the day of the press conference, byte beat launched the first educational hardware – energetically intelligent work light. The layout of byte skipping for educational hardware can be traced back to 2018, when the headlines announced the acquisition of some patent rights of hammer technology, which was later mainly used to explore relevant hardware in the field of education.
At present, in the education hardware job assistant market, in addition to the byte hopping intelligent work light, we can also see the similar function auxiliary products such as iFLYTEK, Weicai and haitiandi on the major e-commerce platforms. Since the birth of the concept of educational hardware homework assistant products, due to the lack of core technology moat, the phenomenon of similar product functions often appears in the market. After a product is sold well, some businesses follow suit.
What’s more, with the rapid development of technology, online education apps such as homework help and ape tutoring can also realize the intelligent homework guidance function. Compared with the education hardware, the app is carried on the mobile phone, so it is more convenient to carry.
In the school admission business, the main products of byte skipping are extreme class big data and AI. Take Jike big data as an example. This product is also acquired by byte jump. On November 18, 2019, Beijing bitzhixue Technology Co., Ltd. will be added to the operation entity of Jike big data, and Beijing bitzhixue Technology Co., Ltd. is a wholly-owned holding company of byte jump.
The positioning of Extreme class big data is a teaching aid tool to help teachers improve teaching efficiency. However, there are many similar products on the market, such as the intelligent learning network of iFLYTEK. In addition, the wind evaluation of Jike big data is also a little strange, with the label of “high turnover rate” in pulse and knowledge. Most importantly, the way students learn through AI big data has been questioned in public opinion.
In addition, Chen Lin also mentioned the producers of educational content, which is what we call educational popular science video bloggers. Tiktok tiktok tiktok is the most competent player for byte beating. In 2019, the layout of knowledge was related to the field. In March 2019, the DOU program was launched. In February this year, the voice announced that the fans of the platform had reached 90 thousand of the knowledge creators.
But the long time tiktok tiktok video has been questioned. Under the impact of the dense vertical video, viewers will not always be able to keep their attention for a long time. In addition, for the producers of educational content, it is necessary to convert the flow into income in order to construct an ecological closed loop. However, at present, it is common in video platforms that authors other than the head account are “generating electricity for love”.
Kwai Kwai, Kwai tiktok and B have also started to work in the field of Knowledge Science in recent years. The report on fast knowledge social ecology shows that the total number of creative knowledge providers has exceeded 540 thousand, and the knowledge of creation is short, with nearly 120 million video capacity. In 2019, Chen Rui said there were 18.27 million people studying at station B.
For byte hopping, the ultimate goal of constructing an education ecosystem is to gain a more advantageous position in the competition, so as to obtain greater business interests. But this process is bound to be full of twists and turns.
(statement: This article only represents the author’s point of view, not Sina’s position.)