Rise with high-quality economic development and changes in policy education concept
China’s subject tutoring industry develops quickly thanks to the policy on national college enrollment expansion in 1999 and the idea that the national college entrance examination has a radical influence on one’s life. Well-rounded education enters a new period thanks to the high-quality economic development, upgrading education concepts and consumption level of parents, and increasing supply of talents who have received higher education.
New Challenges and Opportunities Brought by Policies and Regulations
Challenges and opportunities co-exist. Development of the industry will be healthier and more orderly.
In August 2018 the General Office of the State Council published ‘Opinions on Regulating the Development of Off-campus Training Institutions’, which clarified the basic requirements for spaces and teachers of these institutions. In July 2019 six ministries including the Ministry of Education jointly issued ‘Opinions on the Implementation of Off-campus Online Training Regulation’, which clarified the rectification standards for tutoring institutions in terms of teacher review and operating regulations again. To implement policies of the Ministry of Education, many local governments in China have released guidance on enhancing after-school services for primary and secondary school students, requiring schools to extend after-school service time, provide students with educational resources and extracurricular activities like interest groups to promote their all-around development. Because of the tightening policies and supervision, the tutoring firms are under increasing cash flow pressure and have to bear compliance costs and operating costs. On the other hand, the tightening policies contribute to the healthy and orderly development of the industry. In-school services might become the next opportunity.
Innovation and Changes Caused by Advancement of Science and Technology and the Covid-19 Pandemic
The pandemic accelerates the digital transformation, OMO practice and innovation of the well-rounded education industry
Nowadays, society is being reshaped based on computer networks. The boundaries between virtual and reality, atoms and bits are increasingly blurred. In the education industry, the OMO model of online and offline integration will become an inevitable trend. At present, all industries are empowered or subverted by digitization and intelligence, and the education industry is no exception. Empowered by digitalization and intelligence, more efficient product presentation and delivery methods, together with more efficient and scientific operation and management models, are impacting the traditional business models of education. The Covid-19 pandemic further accelerates the OMO exploration and digital transformation of enterprises in the well-rounded education industry.
The Industry Has Started Reshaping
Increasing players, capital, application of science and technology, and intensifying competition
On the supply side, more and more Internet giants, subject tutoring institutions, and startups are entering the well-rounded education market. The institutions’ businesses are penetrating into each other, leading to fiercer competition. Meanwhile, the huge amount of capital poured into this industry contributes to the merger and integration wave and intensifies customer acquisition competition. In addition, application technologies are growing in the well-rounded education field. The online and OMO trends of well-rounded education have begun. Online well-rounded education will cover a wider range and enhance industry concentration. iResearch thinks that the well-rounded education industry is being reshaped. The competitive landscape will no longer be so scattered, and there will be more giants in segments.