The official implementation of the "double reduction" policy not only made K 12 teaching and training enterprises lose ground in the capital market, but also wiped out the practitioners in the teaching and training industry. However, the market will not leave them breathing space, and self-help transformation is imminent.

The transition to vocational education and quality education has become the thinking direction of refugees. Among them, vocational education with years of development and high industry maturity has become the first choice for transformation.

Under the background that the transformation of vocational education has become an industry consensus, Luyou education, which once focused on vocational education track, has been pushed into the spotlight.

K 12 Backward, Vocational Education Forward

2020 was once a bright moment in the online education industry.

Under the catalysis of the epidemic, online education enterprises have become the darling of capital. Ape Counseling and homework help have successively obtained huge capital financing. For a time, the slogan of "the coming of online education era" witnessed the fiery scene of online education industry.

However, opportunities come and go like the tide. In a year, the online education industry has been brought to an abnormal growth direction. The final result of barbaric growth is that the online education industry has reached this stage.

At the time of life and death, transformation has become a top priority.

The teaching and training industry has always had four well-developed sub-tracks: K 12, quality education, vocational education and educational intelligent hardware. In the case that K 12 is blocked, the remaining three tracks are obviously the transformation direction worthy of priority if you want to "survive".

Among these three tracks, vocational education is considered to be the most promising.

First of all, the scale of vocational education market is in an accelerated expansion state. Last September, Morgan Stanley released a special report on vocational education in China. According to the report, it is estimated that by 2030, the informal vocational education and training market in China will grow by 8% every year, and the scale is expected to expand from 400 billion yuan to 870 billion yuan.

One of the reasons for this situation is the huge demand for vocational education. According to public data, the gap of skilled talents in key fields in China will exceed190,000 in 2020, and it is estimated that this number will be close to 30 million by 2025. At the same time, China is in the stage of upgrading industrial structure, and technology-intensive industries have a great demand for highly skilled talents, further expanding the demand gap.

In addition to the large demand gap, favorable policies have further broadened the imagination of the vocational education market. Also in September last year, the Ministry of Education and other departments jointly issued the Action Plan for Improving Vocational Education (2020-2023). The core of the plan is to accelerate the development of domestic vocational education industry and promote the improvement of domestic vocational education and training level.

After that, many online teaching and training institutions have been eyeing the vocational education market. Gaotu has optimized and upgraded its business since last September, from K 12 to various adult online education services such as postgraduate entrance examination, English, finance, accounting, public examination, teacher qualification certificate, minority languages, and studying abroad. In addition, homework help and Good Future also launched their own adult education brands.

Market economy is often spontaneous and blind, which makes capital tend to flow in a profitable direction for its own benefit. When the head enterprises are all crowded in the same direction, it proves the development potential of vocational education industry.

The closure of K 12 teaching and training will attract more capital to invest in vocational education. Therefore, it may be an opportunity for Luyou education, which has been deeply cultivated in the industry for many years, to achieve a breakthrough.

Can Luyou Education Seize the Opportunity of "Catch the Exam" on GEM?

It is not easy for enterprises to catch up with the industry.

Luyou Education, established in 2005, is mainly engaged in on-the-job postgraduate entrance examination and exam counseling and training. 20 10 Company began to provide vocational examination and training services in the fields of construction engineering, fire safety, medical and health care, and quickly became the main profit source of the company.

On June 25th this year, Luyou Education officially applied for the IPO of Growth Enterprise Market, just before the node of K 12 thunderstorm. So, can this be an opportunity for Luyou Education to ring the bell successfully? First of all, we need to know what the business model of Luyou Education is.

1. Strategically, Luyou Education adopts the mode of "one city, one school", and only one branch school is set up in each prefecture-level city. Although these branches are scattered in various prefecture-level cities, Luyou education is more like a "direct mode". From the development strategy to the teaching arrangement, these branch schools are all planned by the headquarters in a unified way-it can be said that Luyou Education has made the standardized service management model to the extreme.

2. In terms of scale, the prospectus of Luyou Education Luyou Education shows that by the end of 2020, Luyou Education had 238 branch schools, covering 30 provinces across the country. However, this scale is still difficult to catch up with the head enterprises.

3. In teaching, Luyou Education has launched an integrated teaching mode of "live broadcast+recording and broadcasting+face-to-face teaching". Because the adult vocational education faces mostly working white-collar workers or students, it is difficult to teach offline for a long time, so this model is more suitable for them to allocate their study time freely.

It should be noted that in the domestic vocational education industry, the "online+offline" teaching mode is more common, and it is not the original creation of Luyou education, so Luyou education has no advantage in teaching mode.

4. In operation, Luyou Education adopts the sales mode of word-of-mouth marketing and online marketing, supplemented by enterprise cooperation and offline promotion.

Traditional teaching and training institutions can only rely on students' recognition of brands and promote them spontaneously. Therefore, the excellent education that starts from offline also adopts word-of-mouth marketing to recruit new students. However, with the continuous growth of the business scale of Luyou education, the online exposure is also increasing, which accelerates the brand communication. Therefore, word-of-mouth marketing is one of the main marketing methods of Luyou education at present.

In addition, China is in the stage of upgrading industrial structure, and enterprises have a huge demand for improving the quality of personnel and supplementing the number of certified personnel. Based on students' personal good reputation, Luyou Education has attracted many enterprises to train customers.

According to the prospectus, enterprises that have reached cooperation with Luyou Education include large state-owned enterprises such as China Construction, China Railway and China Railway Construction. This also reflects from the side that Luyou education does have a good reputation in teaching quality.

For Luyou education, many years of vocational education experience has seized the favorable terrain on the track. On the one hand, the entry of latecomers will highlight the leading position of Luyou Education, thus enhancing its valuation in the capital market.

On the other hand, vocational education is highly subdivided, which can be roughly divided into academic and non-academic categories. Among them, non-academic qualifications are divided into vocational qualification examinations and vocational skills. For example, civil service examinations, teacher qualification examinations, certified public accountants and other qualification examinations all belong to vocational qualification examinations; Vocational skills include language proficiency test, office skill level and so on.

Due to the high degree of subdivision and different audiences in various fields, it has built certain barriers for excellent education. Seizing this opportunity may be the key moment for Luyou Education to become a dark horse on the track of vocational education.

The huge market is both an opportunity and a challenge.

Although the current teaching and training industry is inclined to vocational education in three aspects: development trend, industry policy and market structure, it is both an opportunity and a challenge for Lu You education.

First of all, online education institutions seek transformation, which will impact the market position of Luyou education.

According to the survey data, since 20 1 1, the number of registered education-related enterprises in China has increased year by year. By 2020 1 1 month, there will be nearly 520,000 new education-related enterprises nationwide. Among them, from June 20438 to May 2020, more than 20,000 online education-related enterprises were registered.

After the implementation of the "double reduction" policy, a large number of online education institutions, mainly K 12, began to seek transformation. However, the influx of a large number of enterprises has made the vocational education market in the Red Sea more crowded.

At the same time, online education institutions such as Gaotu and Good Future are seeking to transform into vocational education. These enterprises with rich resources and rich experience in online education will undoubtedly pose a greater threat to land travel education.

Second, competitors began to accelerate the expansion of business boundaries, which will further threaten the main business of Luyou Education.

Take public education in China, which is at the head of vocational education industry, as an example. Official website shows that at present, Chinese public education has 16669 direct outlets nationwide, covering 3 19 prefecture-level cities, and is gradually extending its reach to county towns and universities.

In addition, Zhonggong Education is constantly expanding its business boundaries. Its main business has rapidly expanded from the initial civil service examination and teacher examination to the fields of construction and fire protection, and its business richness has been greatly improved.

The change of public education in China reflects that a development trend of vocational education enterprises is to change from a small and single education platform to a comprehensive education platform. When the public education and graffiti education in China, which are at the forefront, are surrounded by land tour education in business, it will pose a great threat to them.

Third, excessive influx may bring regulatory risks to the vocational education market.

The closure of K 12 teaching and training will lead to the transformation of a large number of institutions into the vocational education market. However, the excessive influx is likely to bring the industry chaos in online education industry before K 12 into the vocational education market.

As we all know, the failure of K 12 teaching and training is largely due to the disorderly development of the market, and problems such as false teaching and running away with money are flooding the whole industry. The influx of a large number of enterprises is likely to push the vocational education industry forward in the direction of disorderly development, which will eventually lead to the rectification of the vocational education market by supervision.

finally

The original intention of online education is to promote educational equity and personalized education. But when making money becomes the number one event, it obviously deviates from the meaning of the industry.

The collapse of K 12 teaching and training industry has sounded the alarm for vocational education industry. If it deviates from the original development intention of the industry, it will inevitably face national sanctions.

For Luyou education, in addition to constantly improving its own teaching quality, it is also necessary to take "teaching and educating people" as the core of enterprise development. On this basis, Luyou Education needs to continuously expand its business categories, gradually move closer to the head brand and enhance its competitiveness.

Nowadays, the teaching and training industry in the K 12 era has turned over and a new chapter in vocational education has begun. When the latecomers and survivors meet hand in hand, whoever can overcome the challenge can tell his own story in this new era, which is exactly the case with Luyou education.

Author squirrel fish

Text | Guo Song Finance (ID:songguocaijing 1)