In 2021, online education has stepped on the brakes and suffered an unprecedented "cold winter".
According to Ryan Capital, as of December 31, 2021, a total of 32 education companies from the Mainland were listed in Hong Kong. Of the 32 individual stocks, 28 closed down last year, of which 14 had a sharp market value and only 4 closed up.
On the afternoon of January 8, Yu Minhong, the founder of New Oriental, posted on his personal public account, reviewing 2021 and looking forward to the future transformation direction. Yu Minhong said that in 2021, the market value of New Oriental fell by 90%, revenue decreased by 80%, employees dismissed 60,000 people, and cash expenses such as tuition refund, employee dismissal N+1 (compensation), and teaching point rent withdrawal were nearly 20 billion yuan.
Yu Minhong said, "The development of New Oriental is still my responsibility and mission, which seems to be disliked by me, and I must go all out." Establish the purpose of working together with everyone to let New Oriental move to the next stage of development. ”
Yu Minhong's year-end summary:
New Oriental's revenue decreased by 80% and 60,000 employees were dismissed
"At the end of the year and at the beginning of the year, it is a time to summarize the past and plan for the future." Yu Minhong said that on January 4 and 5, for two consecutive days, all departments and subsidiaries of New Oriental Headquarters made work reports, summarized the work in 2021, and deployed the work in 2022.
"All of a sudden, I entered a hectic and cumbersome situation, with many meetings and many upsetting things." Yu Minhong said in the text.
Yu Minhong said that in 2021, New Oriental has encountered too many changes, because of policies, epidemics, international relations and other reasons, many businesses are in uncertainty. In the past six months, with everyone's efforts, New Oriental has survived hard and saved a little strength. In the process of ups and downs, the vast majority of people are united, in the same boat, and strive to move forward in the wind and rain.
Yu Minhong said that New Oriental's market value fell by 90 percent, operating income decreased by 80 percent, employees dismissed 60,000 people, and cash expenses such as tuition fee refunds, employee dismissalS N+1, and teaching point rent withdrawals were nearly 20 billion.
In this process, New Oriental decided to completely stop the ground and online training of K9, break the arm of the hero, and do more projects that provide services for the comprehensive growth of students, such as quality, literacy, research, camp education, etc., and decided to increase investment in the college student market and the overseas Chinese market.
Yu Minhong specifically mentioned New Oriental's live streaming platform Oriental Selection.
Yu Minhong said that New Oriental Online, with Hong Kong listed companies as the main body, founded the Oriental Selection Live Selling System, transformed into an e-commerce platform with agricultural product screening and sales as the core, provided product value-added services for farmers across the country, and made a trustworthy platform linking farmers and consumers.
Yu Minhong finally said, "We must do certain things in the midst of uncertainty." The so-called uncertainty means that the situation and policies are still changing, and it is necessary to cooperate with the changes in the situation and policies, adapt to changes, and look for development opportunities that conform to the general policy; the so-called certain things are to always do things that are valuable, help others, and help social progress, that is, "cultivate themselves and benefit others."
Image source: Visual China
There is no live broadcast room for Yu Minhong
Less than 900,000 are sold in a week
It is worth noting that since the "double subtraction", almost all off-campus training institutions have begun to try to transform.
As the "big brother" in the industry, New Oriental has stepped up its transformation layout outside the field of education. According to industrial and commercial information, in the past 3 months, New Oriental has successively invested in the establishment of a number of new companies, involved in a variety of fields, including software development, career intermediaries, food management, Internet information services, fertilizer sales, intelligent robot research and development, education hardware and so on.
As one of the education and training giants, after announcing the suspension of the k9 discipline training business, Xueersi teaching aids books are selling well on the Internet. "Xueersi Books" has 268,000 fans on Douyin, and in the live broadcast room, the anchor sells products such as Xueersi teaching aids and intelligent learning machines, including graded reading, mathematical thinking, etc., many of which are in the pre-sale state. The highest-selling "Thinking Innovation Clearance" reached 25,000 copies, and the sales of books such as "Learning and Thinking More Than Loving Literacy" and "Learning and Thinking More Than Loving Mathematics" exceeded 10,000 copies. The announcement on the front page of the store also called on everyone to rationally buy teaching aids, and said that a variety of book products have been sold out and are being replenished nationwide.
In addition, many head educational institutions such as Good Future, Ape Counseling, NetEase Youdao, and Excellence Education have adopted a "multi-legged walking" approach to multi-line layout, and quality education, adult vocational education, intelligent education hardware and other directions have become the most popular tracks.
However, the road to transformation is not easy.
Take New Oriental's live streaming with goods as an example. According to data from the third-party data platform Feigua, on the day of the premiere on December 28, the sales of Yu Minhong's live broadcast reached 4.932 million, and the number of viewers reached 1.869 million, and the live broadcast increased the account by 44,000 fans.
But since then, without Yu Minhong's personal appearance, the popularity of New Oriental's live broadcast has dropped significantly.
Judging from the live broadcast data, from December 28, the intensive broadcast has been launched, and the Oriental Selection has basically maintained a live broadcast time of 3 to 4 hours per day. However, the live broadcast results are not eye-catching, the number of viewers is basically only 100,000, and the sales are around 200,000. Feigua data shows that the total sales of seven live broadcasts from December 29 to January 4 are less than 900,000.
Editor| He Xiaotao and Wang Jiaqi
Proofread | duan lian