According to 18~35-year-old young people's consumption behavior and consumption concept, some surveys have found that the top three spending amounts in 2020 are education and training, housing and medical care. Education and training that has been hovering in the top five has become a hot topic.
Insiders pointed out that in recent years, residents' willingness to spend on education and training has been on the rise, especially in the context of rapid economic development and industrial structure transformation, China's demand for talents is becoming more and more obvious, the scale of education investment continues to expand, and the huge population welfare and willingness to pay have created a trillion-dollar market scale of the education industry.
With the continuous development of the industry, the popularization rate of K 12 education is also increasing. In recent years, the progress of science and technology and the change of consumption concept in Z era have accelerated the penetration of K 12 education. In 20 19, the online education penetration rate in China was about 15%. Since 2020, the sudden outbreak of COVID-19 has made the advantages of online education more prominent: online education has broken through the limitations of time and place, and enriched the forms and contents of knowledge acquisition.
Under the influence of the epidemic, the penetration rate of K 12 online education industry reached its peak in March 2020. According to the prediction of the Key Laboratory of Big Data Mining and Knowledge Management of Chinese Academy of Sciences, the penetration rate of online education industry in China will exceed 55% by 2022.
In terms of market size, during the period of 20 13-20 18, the overall market size of China K 12 showed an increasing trend year by year, with a compound annual growth rate of 1 1.20%. In 20 18, the market size of China K 12 was 433 10 billion yuan, with a year-on-year increase of 14.20%. It is estimated that the market scale in 20 19 will be nearly 475 10 billion yuan. The financial report of New Oriental in fiscal year 20 19 shows that the net income reached $3.096 billion, and K 12 was the main growth force.
Online and online integrated development
Affected by the epidemic, the training institutions were completely closed after the Spring Festival. At the request of the Ministry of Education, traditional offline training institutions were forced to quickly transfer courses to online platforms. New Oriental and Good Future, two giants in the traditional education industry, launched free courses throughout the network, and continued to increase their respective market share. Internet giants have also entered the game, and with strong financial and technological advantages, they have launched a battle for user portals.
Insiders pointed out that although online education has obvious shortcomings such as poor communication with customers and difficult monitoring of teaching effect, its development trend is irreversible, especially the sudden epidemic situation, which accelerates the integration of online and offline. Course system and teaching service are important, but how to adapt to and even innovate the changes in educational scenes brought about by new technologies is a problem faced by every educational institution. In order to meet the high demands of consumers, the teaching and training industry is bound to achieve leap-forward development at a faster speed.
In the first half of the year, many people stayed at home for a long time to fight the epidemic, and there were also a few people who were bored to spend money on online courses. However, it is worth noting that thanks to the vigorous development of online education and teaching and training apps, education and training consumption is experiencing a period of great expansion.
-For more data sources and analysis, please refer to the Analysis Report on Market Foresight and Investment Strategic Planning of China Education and Training Industry by Forward-looking Industry Research Institute.