Social Distancing Brings Not Only Growth to Education SaaS Market in China
The problem now is that every family has bought a lot of software with different services, and it is impossible to achieve compatibility and data communication of various software.
Text | Li Qingyuan
As an important part of the tertiary industry, the education industry was inevitably affected in this epidemic. Many offline education institutions neither resumed work nor recruited students. It can be said that the new coronary pneumonia epidemic has forced a revolution in the education model. From the elementary school to the working people, this epidemic has forced almost all courses to the Internet.
If some education SaaS (providing software services through the network) enterprises standing under the spotlight unexpectedly faced the rare market education period and traffic bonus, how would they deal with the industry reshuffle?
1 “Dangerous” or “Machine”
Ren Xianghui, the founder of SaaS enterprise Ming Daoyun, said that the vast majority of companies in the SaaS industry are quickly approaching the edge of collapse due to the epidemic. “We are not safer than restaurants and KTV.”
“If the impact of the epidemic continues for more than three months, most SaaS companies will be in jeopardy of cash flow. If it affects more than half a year, most SaaS companies will disappear. In the past week, many of the SaaS companies we know have already begun to cut staff, Pay cuts and borrowing are not rare. It ’s just that most SaaS startups are obscured. They are not well-known for restaurant brands like Xibe. ”Ren Xianghui said.
Is this really the epitome of the SaaS industry?
In this sudden knockout, the other side of the market is a completely different landscape.
Polyway said that during the epidemic, customers increased by 1048% year-on-year, while the peak number of online users reached 11.29 million. “If it is a company that specializes in the tourism industry or the foreign trade industry, then he is bound to be affected by his parent industry, but if he has the ability to completely move the work that cannot be performed offline, it does not depend on A certain non-networked link is just a good time to embody the value of the platform. “PolyXie CEO Xie Xiaofei told Investment Education.
On February 10, the spring semester of primary and secondary schools in Jiangxi Province began, and 7 million students landed on the “Gan Jiao Yun” to start their online class journey. According to the requirements of the Jiangxi Provincial Department of Education, from February 10th, 7 million students in all primary and secondary schools in Jiangxi Province will use the “Ganjiao Cloud” to carry out comprehensive online courses. Teachers and students of various schools use the Ganjiao cloud platform to enter the personal online learning space and class space for class question answering.
Relying on the video cloud service provided by Polyway, “Ganjiao Cloud” provides teaching guidance such as live teaching, question answering, course review, and homework assignments for primary and middle school students in the province, helping teachers become qualified “education anchors”.
Polyway is only a microcosm of the education of SaaS in this epidemic.
After the Ministry of Education and other ministries issued a document requesting the policy of “no classes and no school suspension”, many SaaS enterprises provided live broadcast platforms, technical services, and solutions to public schools and education and training institutions. Among the A-share listed companies, several companies also participated in the online education of the epidemic.
Yunduo VP Wang Yun told reporters, “Because of the first-to-pay model, everyone is in urgent need of an online platform at this stage, so our cash flow has improved, because the transaction cycle has become shorter, and the previous cycle required 4 In 6 weeks, during the epidemic period, about 3–5 days, the positive trend of cash flow is more obvious. The number of users has increased by about three or four times compared with the same period last year. “
Reflected in the secondary market, the overall performance of the online education sector is also remarkable. From February 4 to March 13, the cumulative increase in the A-share online education sector reached 24.69%, and the transaction value has broken through 800 billion yuan. Many concept stocks have experienced continuous daily limits during this period and set new stock price highs.
2The time for capital entry
Enterprise-level services are gradually gaining recognition.
According to CVSource’s investment data, since 2014, corporate services began to be sought after by capital, and reached a peak in 2015, with a total of 2657 cases, with a financing amount of 432.496 billion yuan. Countless entrepreneurs and investors have poured into this track. According to market predictions, Chinese enterprise-level services will usher in a true golden age in the next 3–5 years.
However, in enterprise-level services, capital does not favor SaaS for education.
It is reported that the financing of the Chinese SaaS industry in the first half of 2019 is mostly concentrated in the fields of data services and human resources. Among them, the data service area with the largest number of financing has a total of 44 financings, accounting for 51.7% of the total financing volume of the SaaS industry.
Although education is known as an anti-cycle industry, it is a bit embarrassing to encounter such an experience.
Many investors said that investments focus on long-term returns, and the epidemic situation as a short-term factor will not affect the investment strategies of investment institutions. The current epidemic has indeed affected the investment rhythm, but it will return to normal after the end of the epidemic.
“Humanity is irreversible in the process of digitalization. It was a gradual change at the beginning, and now it has reached a stage of great change. So specifically in the education industry, consumers are used to being ‘educated’, from offline physical education to online education. The trend is already irreversible. “Ning Baiyu, the founder of Blue Elephant Capital, talked about this in an online live salon with the theme of” online answers to vocational education “organized by Vote Education.
The huge influx of free traffic online is regarded as an unprecedented test of online education, which is a huge consumer demand. “Every new traffic will bring opportunities for innovative traffic pooling, and innovative traffic pooling opportunities will generate new players.” Ning Boyu added.
After the epidemic is over, if you continue to cultivate the online needs and patterns you have created and create new online education, it is possible to generate new online education giants.
“The OMO model of the education industry is to integrate offline teaching effects with online teaching data, and to open up all data including offline education, online courses, dual-teacher classrooms, APPs, etc. to form a comprehensive online and offline linkage. Scene teaching is closed-loop, providing students with a high-quality, full-scenario and personalized learning experience. “The CEO of Ai Learning Group, Xu Jicheng, said to vote for China Education.
The epidemic has brought the popularity of online education and increased the penetration of online education; it has also forced offline institutions to make online transformations, increase product lines or provide online value-added services, thereby enhancing the competitiveness of offline institutions. In the long run, the epidemic has accelerated the OMO trend of online and offline integration of the entire education industry.
“If a training institution wants to operate online, it needs marketing department, customer acquisition department, sales department, teaching department, and operation department. The problem now is that every company has bought a lot of software with different services, and it is impossible to achieve all kinds of software. Compatibility, data communication, what we have to do in the future is to help enterprises build an integrated closed-loop system and provide a composite service model from the front end to the back end. “Wang Yun talked with confidence about the next plan of the cloud classroom .
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