Intern journalist | Chen Zhenfang
"Under the trend of enterprise digital learning, it is expected that the proportion of training solutions and training content products will gradually increase. In the future, technology will become the key to transforming the traditional enterprise training business, and service will become the basis for differentiated competition among manufacturers. ”
On February 16, iResearch expressed the above views in the "2021 China Enterprise Training Industry Research Report" (hereinafter referred to as the "Report"), and pointed out that the total economic volume of the financial industry, software IT industry and medical service industry is growing faster, and the demand for high-quality talents is more urgent.
According to iResearch Consulting statistics, in 2020, due to the impact of the epidemic, the corporate training budget was reduced, the training activities based on offline teaching were contracted in a large area, and the revenue scale of corporate training organizations fell back to 161.7 billion yuan, down 10.9% year-on-year. This market size is expected to reach 268.3 billion yuan in 2023.
Image source: iResearch
From the perspective of industry distribution, the enterprise training market size of the construction, manufacturing and financial industries accounts for more than 60%. Among them, the manufacturing enterprises have the largest number of employees, more than 100 million people, which is the industry with the largest number of Employees in China, and as a high-profit financial industry, its per capita external training expenditure is the highest, and the per capita external training expenditure of enterprises in the industry exceeds 1300 yuan.
Wholesale and retail trade, transportation, warehousing and postal services are close behind, and the market size is also around the order of 10 billion. Among them, the number of large enterprises with thousands of people or more in the transportation and warehousing industry accounts for more than 25%. From the perspective of growth rate, the information transmission, software and information technology service industry, scientific research and technology service industry have grown rapidly, and their market size has exceeded 5 billion yuan.
As a track spanning two popular areas of online education and corporate services, the number and scale of financing in the corporate training industry have increased year by year. In 2010, Legend Capital, a subsidiary of Lenovo, invested in the industry's veteran enterprises to gather shares, and the corporate training track attracted capital attention. In 2016, the number of A-round and angel-round startups surged, a large number of targets were listed on the New Third Board, the number of financing transactions hit a record high, and the first year of track capitalization began.
In 2020, under the background of the epidemic, the demand for online training and learning of enterprises has surged, and training system manufacturers have ushered in an opportunity for large-scale promotion, and the penetration rate of potential customers has increased. In the post-epidemic era, the head manufacturers of the subdivision track appeared, and with the landing of action education in A shares, Yunxuetang ranked among the unicorns, the industry growth logic gradually became clear, the capital began to increase, and the financing scale hit a record high.
In 2021, nearly 3 billion yuan will be raised for corporate training, and the scale of financing will reach a record high, and nearly 60% of the funds will flow to cloud academy and mobile education.
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From the perspective of the industrial chain, the upstream of the enterprise training industry is composed of three aspects: teachers, content and technology.
There are two types of corporate training instructors, including internal training instructors, which are mined and trained by the enterprise internally; and external vocational training instructors, which belong to the outsourcing of corporate training business.
Under the characteristics of the industry with strong IP, landing and high conversion attributes of lecturers with scarce resources, the lecturer brokerage platform came into being, providing comprehensive services such as human packaging, business docking and brand operation for individual free lecturers, and providing training institutions with strong IP, landing and high conversion attributes.
In terms of corporate training content, digital content has gradually become the mainstream, and high-quality content needs to be both systematic and fragmented. How to let learners consume quality content in a short period of time is an urgent problem to be solved.
In terms of products, we mainly focus on open courses and internal training courses, and improve the delivery effect through auxiliary landing light consultation. According to iResearch consulting data, 94%, 60% and 56% of enterprises chose in-house training, out-of-town and open courses, and online learning, respectively, ranking among the top three.
In terms of technology, at present, live broadcast technology has matured and landed, artificial intelligence technology is accelerating penetration, XR technology, including VR, AR and MR, in the field of industry, medical and emergency management with practical skills as the main training content, there are more demands for scenario simulation training based on XR technology, and enterprises often reduce the procurement cost of facilities and equipment through cooperation with vocational colleges. However, subject to the level of software and hardware technology development, the wide application of XR still needs time.
The midstream of the industrial chain consists of a training organization and a training system.
There are three main types of training organizations that provide training services to enterprises, including training institutions, professional colleges and export-oriented enterprise universities. Among them, the training institutions have the highest degree of marketization; the professional colleges and universities have the highest degree of systematization; and the export-oriented enterprise university business is the most targeted.
Due to the low threshold of the enterprise training industry, the large number of small and medium-sized enterprises, and the delivery mode based on offline teaching, which further restricts the speed of large-scale expansion of institutions, the market presents a highly fragmented industry pattern.
The platform system of the training system is mainly composed of learning management system (LMS), knowledge management system (KMS), virtual classroom system (VCS) and online examination system (OES).
Downstream is an enterprise client. Depending on the size, medium and large enterprises have large budgets and tend to prefer to procure training systems that provide integrated training management services. "State-owned enterprises" and "listed companies" are two important labels for quality customers.
For small and medium-sized enterprises, limited training budget is the main factor affecting their training needs and procurement decisions, in the face of fierce industry competition, small and medium-sized enterprises tend to give priority to investing funds in areas that directly generate economic benefits, and the overall willingness to purchase training products and services is low.
For some small and medium-sized enterprises with strong training awareness, high-value employees in key positions will be given priority in training, and enterprises tend to shorten the transformation chain from "enterprise talent training" to "economic benefit improvement" through targeted development of middle and senior managers, sales personnel and R & D personnel.
In terms of competition, the top five companies in terms of business scale accounted for more than 30% of the market share, and the concentration of head institutions gradually increased, and the market began to diverge. In 2021, action education landed in A shares; Yun Xuetang became a unicorn, and capital began to increase.
"Building regional and domain barriers to training organizations and improving the quality of corporate brands are key success factors for enterprises." iResearch recommends training products + consulting services + resource integration to break through the bottleneck of growth with a platform strategy.