Insight into business opportunities in online education in China

The technological evolution of Internet video has ignited the online education market.

The report shows that the scale of China's online education market has increased year by year. In 2016, the market size reached 156.02 billion yuan, a year-on-year growth rate of 27.3%. A total of 303 investment and financing cases occurred in the industry, with a total investment and financing of approximately 15.5 billion yuan.

On most online English education platforms, teachers teach by remote video conversations with students. This model directly led to a sharp increase in the demand for English-speaking foreigners in the market. There are more than 7,000 Philippine foreign teachers teaching in this 51Talk platform. However, the seemingly broad market still needs to be cultivated and cultivated.

According to public data, as of the end of 2018, 70% of online education companies are in a state of loss, 10% of companies can be flat, only 5% of them can make a profit, and even 15% of companies are on the verge of bankruptcy. In addition, foreign teachers in Southeast Asia face the dual challenges of management and teaching qualifications.

Online English education in the market is mainly divided into adult education and youth education. In recent years, online education users in China have increased exponentially. As of December 2018, the number of online education users in China reached 438 million, an increase of 67.5 million from the end of 2015, with an annual growth rate of 25.0%.

Among them, the number of mobile online education users was 97.98 million, an increase of 44.95 million compared with the end of 2015, with a growth rate of 84.8%. Foreign teachers from Europe, America and the Philippines have become the hottest choices on the market.

The market fever can also be seen from the capital market. 51Talk's first quarter financial report for 2017 showed that the company's net revenue was 160 million yuan, an increase of 121.0% compared with 72.2 million yuan in the same period last year. The platform has more than 7,000 foreign professors in the Philippines, and there are more than 2,000 foreign teachers from Europe and the United States.

So what’s your point of view? Leave the comments below.