In July 2021, the "Opinions on Further Reducing the Homework Burden and Off-campus Training Burden on Students in the Compulsory Education Stage" were published. Subject teaching and training institutions have ushered in policy adjustments, and how to transform teaching and training institutions has become an urgent issue.

The original intention of ”double reduction": to correct the biased concept of education and return the attributes of educational public welfare; to restore the educational ecology and de-capitalize education; the school is the home of education, and the fundamental task of Lide Shuren is entrusted to the school.

As a dual identity of a parent and an educator, the author empathizes with the “double reduction” policy, and feels firsthand that the double reduction policy is imperative. The “inner volume” of education not only affects the growth of young people, but also has increasingly become a social livelihood issue.

“Double reduction” is a national strategy. It is the competent education department that finds problems and solves them in a timely manner, and the government's public policies keep pace with the times. Every educator must actively embrace changes, respond to national policies, keep up with the pace of national development, devote himself to the field of education that the state supports and encourages development, and give full play to his own social values.

Where are the transformation opportunities in the education and training industry?

Policies may close one door for educational institutions, but at the same time they will open another door. The education and training industry has ushered in four new tracks: quality education, vocational education, education digitization, and education hardware.

1. Quality education.

The ”Double reduction" policy stipulates that it mainly focuses on subject training at the K12 stage, and institutions with K 1 2 education and training as their main business are facing transformation. Quality training institutions are less affected, and training institutions such as arts and sports education can still carry out business normally. In 2021, the Ministry of Education, the Central Organization Department, the Central Editorial Office, the National Development and Reform Commission, the Ministry of Finance, the Ministry of Human Resources and Social Affairs and other six ministries jointly issued the "Guidelines for the Evaluation of the Quality of Primary School Education", and quality education has gradually been strengthened and valued in the compulsory education stage. On August 3, 2021, the State Council issued the "National Fitness Plan (2 0 2 1- 2025)", the plan has a very important guiding role in the development of the physical education industry for adolescents and children.

Data source: i R e s e a r c h

Quality education in our country is in a stage of rapid growth.2 0 1 5- In 2019, the size of China's quality education market increased from 2.642 billion yuan to 5.286 billion yuan, with a C A G R of 19%. 2 0 2 0– The COVID-19 epidemic in 2022 has had a certain impact on quality education in the short term, but the demand for quality education in our country will continue to exist. In the context of strong supervision of subject education and great support for quality education, the demand and supply of quality education are expected to usher in new growth.

Quality education that has been launched by education and training institutions: a good future, Libu children's education, Bixin (after-school hosting); Ape tutoring: Pumpkin Science (STEAM), Zebra (Al education), Ape editing; spark thinking, little spark, little torch, spark programming (children's programming); vigorously educate, Qingbei Online School aesthetic Education Master Class, Guagua Dragon Enlightenment; New Oriental, children's Art course “bubble Art”, eloquence expression class; other education and training institutions are also actively layout quality education.

The development of quality education has become a social consensus.

2. Vocational education.

Vocational education often bears the important function of cultivating high-quality workers and skilled talents on the front line of production and service. In recent years, our country has successively introduced a number of policies to promote the sustainable development of vocational education.

Source: Official Website of the Ministry of Education

According to the “Outline of the ”14th Five-Year Plan“ and the Outline of the 2035 Long-term Goals”, during the "14th Five-Year Plan" period, our country will focus on enhancing the adaptability of vocational and technical education, including highlighting the characteristics of vocational education, improving the top-level design, Chuangxin school model, improving the quality of education and deepening vocational and technical integration. Judging from the development trend, vocational education and technical talents will undoubtedly be the key development direction in the future.

The transformation of major education and training institutions to vocational education: a better future, Qingzhou (vocational education); Gaotu, concentric circle (postgraduate entrance examination), Gaotu College (adult education), Gaotu APP (adult education); vigorous education, tireless classroom (teacher training); head education, art examination courses.

3. Informatization of education.

Educational informatization refers to the use of computer multimedia and network information technology in the field of education to promote the comprehensive reform of education and adapt it to the new requirements of the information society for the development of education. After the current K 1 2 off-campus subject training is compressed, free and high-quality educational resources will continue to be popularized in the future. The in-depth integration of education and science and technology to improve the informatization of education and the efficiency of student learning is one of the development trends of China's education industry. The Ministry of Education made it clear in 2011 that governments at all levels should allocate not less than 8% of education funds to education informatization funds. The scale of China's educational informatization market is also continuing to rise.

4. Educational hardware.

Educational intelligent hardware is the application of intelligent hardware products in the field of education, which are developed to meet the needs of various educational stages and scenarios according to different objects of use. For users of education and training, learning intelligent hardware has gradually become a just need for teaching aids. Bytedance's Dali Education, Huawei, Ali, Tencent, Baidu, Netease Youdao and iFlytek have all released educational intelligent hardware products. According to i R e s e a r c h data, the size of China's educational intelligent hardware market in 2020 will be 34.3 billion yuan, and it is expected to be close to 100 billion yuan in 2024.

The leading education and training institutions have mature operating experience and product research and development capabilities. As long as the enterprise can integrate its own resources and combine its superior strength, it will definitely be able to create brilliance in the new track.

2. The current situation of the education and training industry under the “double reduction”

1. The stock price of the education and training industry fell sharply.

With the strengthening of China's supervision of the education and training industry, the stock prices of listed companies in China's education and training industry have fallen all the way. After the introduction of the new “double reduction” regulation on July 23, 2021, the New Oriental stock price of US stocks fell by -5 4 in a single day. 2 2%, Good Future's stock price fell by -70 in a single day. 7 6%, Netease Youdao's single-day decline was -4 2. 8 1%, Gaotu's single-day decline was -6 3. 2 6%. On July 26, 2021, the Hong Kong stock Excellence Education fell by -4 2 in a single day. 4 5%, thinking Music Education's single-day decline reached -4 5. 4 5%; A-shares Doushen Education and Angli Education both closed down.

2. A number of institutions laid off workers.

The education and training industry has ushered in strong supervision, and various education and training institutions have to face layoffs and transformation. Many companies such as Good Future, New Oriental, Homework Help, Ape Counseling, V I P K I D, Gaotu, 5 1 T a l k, Head education, etc. have laid off workers.message.

3. Venture capital institutions in the capital market have been hit hard.

In 2020, a total of 231 financing incidents occurred in China's education and training industry, with a total financing amount of more than 6 40. 500 million yuan, of which, the K 1 2 training track is highly favored by capital, and the financing amount in the field of K 1 2 education in 2020 will reach 4 6 5. 1.8 billion yuan. At the same time, most of the financing amount is concentrated in the top education and training institutions. Homework counseling and homework help are the two major unicorns in China's education and training industry. In 2020, the financing amount exceeded US33.5 billion and US。2.1 billion respectively. The capital market had expected that leading education companies such as Ape Counseling and Homework Help would complete their listing in 2021. At present, it seems that due to the impact of the policy, most venture capital institutions have been blocked from exiting.

4. A large number of small and medium-sized institutions in the education and training industry will be liquidated.

With the strengthening of policy supervision, a large number of small and medium-sized education and training institutions in my country are facing difficulties. After standardized governance, my country's education and training institutions will clear a large number of small and medium-sized institutions with uneven quality. According to the data of Qichamao, from 2014 to August 2021, the total number of education-related enterprises in our country increased from 40,000 to 420,000. From the perspective of the registered capital of the enterprises, in the education industry, the number of enterprises with a registered capital of 0-1 million is the largest., Followed by enterprises with a registered capital of 1-2 million, basically showing an industry pattern of “the lower the registered capital, the larger the number of enterprises”. After the new regulations, the rectification of off-campus training has accelerated the reshuffle of the industry, and small and medium-sized offline institutions may be eliminated.

5. The capitalization of the education and training industry is over.

With the continuous increase in the supervision of the education and training industry in my country, the education and training industry has been substantially affected, especially the capitalization of K 1 2 subject training has come to an end. In the past, the capital's popularity in the education and training industry and the disordered competition situation pressed the pause button. In essence, there is a contradiction between capital's excessive pursuit of efficiency and its tendency to profit-seeking, and the fairness and public welfare of education.