Online Education Plays "Burning Money" and Traditional Counterbalance

When the taxi software crashed into the smoke, another rush came. It was not too fresh online education. After Alibaba Group announced the investment in the online education platform and the online English learning machine Tutor Group, according to insiders, Tencent and New Oriental have jointly established a joint venture focused on online education and will be deployed to the CEO by Tencent.

Online education or heat wave

According to statistics from iResearch, a market research institution, the online education market in China is expected to reach 92.4 billion yuan in 2013, and it will maintain an annual growth rate of 30% in the next few years, and will exceed 160 billion yuan by 2015. The Internet giant smashed in O2O's "Red Sea" and turned its attention to online education that was still "Blue Ocean."

In the lively online education field, the recent tit-for-tat between YY education and the traditional education giant New Oriental has become a focus. With the release of the Happy Age (YY) on February 25, the field of online education became immediately obvious, lively, and highly valued. In the afternoon of the same day, YY announced that it had entered online education, subverted traditional education using the Internet model, and launched free IELTS and TOEFL training. According to Liu Yujun, vice president of YY Education and Gathering Times, they found that 80% of online students point to IELTS and TOEFL Intensive Courses. The online price of the course is 3,000 yuan, and it is used in high-cost cities of 8,000 and 9,000 yuan. He introduced that there are 3 billion in the market, accounting for 70% of the income of many institutions under the line. Therefore, YY spends money on this market. However, the New Oriental is calm and the founder, Yu Minhong, believes: "Exaggerated propaganda shouting slogans does not equal reality," and "everyone will see the results after one year."

The Internet boom is sweeping through, and following the concept of “touch nets” such as O2O and Internet finance, the online education has also begun a “big step”. Since 2013, there have been Internet companies in the online education field. Platform-based online education companies have flooded into the mainstream market. This market has long been viewed by many giants. The entry of giants has made the online education market increasingly fiercely competitive. The education market continues to heat up. This year, BAT's three giants have marched into online education.

The other two Baidu and Ali in “BAT” have already shared the growth of the online education industry by investing. Since the beginning of 2014, Baidu Education Channel has added a module “Department of Learning”, which is based on live video broadcasting. The educational institution provided him with a free video live broadcast course. Last year it also conducted round B investment in the school network. Alibaba.com had previously led round B financing of the online education website Tutor Group. Currently, both New Oriental and Tencent officials have expressed No comment on market rumors, but in the new version of Tencent QQ, new features such as PPT presentations and QQ group videos have been added, and at the same time, Tencent’s insiders have confirmed that the online platform for QQ Group’s online education will be launched soon. The internal payment function will also be launched soon, plus a closed online education platform for the curriculum recommendation platform.Other sources revealed that the two parties may also consider exploring the WeChat platform and promote online education through WeChat payment, short video, etc. Tencent Online Education The on-line platform will undoubtedly make the online education market more fierce.

For users, the purpose of receiving education and training is always to obtain skills and achieve results. Through technological advantages, improving the efficiency of education is another trick for Internet companies to enter online education. Independent Internet analyst Yu Bin said, “Online education is not only moving offline education recorded video to the Internet, it has to solve a series of problems in the experience, such as teacher-student interaction.” In this regard, Internet companies have matured The video live broadcast technology and multiplayer voice technology can meet the needs of real-time questions and answers, and even take the exam and statistics.

Some analysts believe that among the three giants of "BAT", Baidu's advantage lies in the perfect product system. Baidu Post Bar has been established by users, Baidu Encyclopedia, which has user interaction, and Baidu Encyclopedia, which are most easily read by users. This is the other two. The internet giant is scarce. Undoubtedly, Baidu is fully aware of this and has stepped up its pace. Baidu is building a deeper level of payment and evaluation systems. In the future, Baidu will use class teaching tools to solve online teaching problems. Tencent and Ali also followed suit non-stop. Online education heat waves or really set off.

Industry scale will reach 160 billion

Hong Po, a well-known Internet source, believes that in recent years, the Internet industry has gradually penetrated into traditional industries such as education, taxis, restaurants, and tourism, creating many opportunities. Coupled with the unbalanced distribution of educational resources in China, Internet thinking needs to be promoted and shared. Li Xueling simply stated that 2014 is the first year for Internet companies to enter the traditional field.

According to industry analysts, there is huge room for the development of online education in China. By 2017, the market scale is expected to reach three times the current level. On the one hand, China’s education industry expenditure ratio is less than half of that of the United States, which is only 3/4 of that of India. Future education expenditure still has huge room for improvement. On the other hand, China’s Internet penetration rate has increased from 23% in 2008 to 2013. At 45% of the year, with the rapid rise of the Internet, the gradual shift of education from offline to online is an inevitable trend of development.

According to data from iResearch, the online education market in China is expected to reach 92.4 billion yuan in 2013, and will exceed 160 billion yuan by 2015. The Chinese online education market will usher in a major explosion in the next few years. Online education is a good investment direction. China's education market is very large and education resources are relatively scarce. From the perspective of Chinese traditional education concepts and the demand for talents in various industries, education is an area where users are very willing to pay money and time.

With the "BAT" three major monies have to save money to join the melee, for this huge cake, but also makes the online education industry is growing. The future scale of the online education industry should not be underestimated.

Online Education vs Traditional Education Counterattack

Online education has become the next development direction of the Internet. With the development of the Internet industry and technological advances, especially the penetration of the mobile Internet into traditional industries has only just begun. Online education is gradually forming its own unique education model, while also attracting many users to abandon traditional offline learning methods. Instead, online learning is used as a means of acquiring knowledge. Therefore, online education is a very good project regardless of future trends or the value of business investment.

Currently, the development of online education in China is only just starting. What will happen in the future? What form will the online education eventually take? It is still not clear. The founder of New Oriental, Yu Minhong, has always been concerned about online education. He believes that online education is a challenge for traditional face-to-face teaching and complements rather than replaces traditional education. In addition, education must be combined with the spirit of education and the spirit of the Internet to really do a good job. Compared with offline education, online education also has its advantages. Yi Yi Consulting Chief Analyst and CEO Zhang Yi said that online education can break through the space-time restrictions, combined with mobile terminals to achieve fragmented learning, more diversified educational content.

"Online education" now seems to be the same as "taxi software". The giants will be able to burn hundreds of millions of dollars for a while. For some time, waiting for the situation to stabilize, online education may return to peace!