Learning a great education Jin Xin: Online education O2O first to tamp down the line of business

Unlike many educational institutions rooted in Zhongguancun, the major education headquarters is located in a quiet white building in the Xiba River, Chaoyang District, Beijing. In a way, this has to do with the characteristics of learning. In the Internet education surging in the present, the education sector is noisy: The Intruder busy circle users, spell traffic, Watchmen anxious to the online transformation and upgrade, hot money constantly pouring in, alliances succession ... Learning big, but still leisurely to maintain their own rhythm. If it wasn't for the launch of the e-Learning Smart Tutoring Platform This March, it would almost be forgotten by many people. For the changes outside, the chief executive of the Great Education CEO Jinxin showed a rare calmness and perseverance. In his view, the current online education is more concepts and attempts, primary and secondary areas of fundamental changes have not yet, to recognize the trend of preparation and countermeasures is important, but can not blindly follow suit. Although the online education is hot, but the profit is very difficult, his choice is uses the mobile internet and the O2O to raise the line business capacity, puts the line main business to do solidly. E Learning is in this context launched. Jinxin said that the two-year brewing product, will be brought to learn the revolutionary changes in the line business, learning is happening and the upcoming changes are based on this. In the two quarter of this year's earnings, the net profit fell 11% year-on-year. As a listed company, learning Big is not optimistic about the stock price and valuation, so that jinxin can not avoid, but also forced him to make more changes to improve profitability. In addition to E learning, its business model, teaching center, etc. will also be adjusted. It is worth mentioning that the majority of the major advantage of the one-on-one counseling, the proportion is gradually diluted, group teaching share will increase. From the point of view of pure Internet, the transformation of learning big is really slow. When it comes to learning a great deal, Jinxin does not agree: "Why do we always think we are conservative and cautious?" Drastic changes are taking place within us. "The drastic change he refers to is that, in order to promote e-learning, and to invest heavily in education to provide students with a tablet computer, on this basis, the teacher's teaching methods, teachers and students of communication, school and customer communication methods, are changing dramatically." "If you want to do a pure online product, minutes will come out, what problem solving artifact, photo answer questions, what question bank ... But there is no point, I want to have a good support first. Jinxin said that there is not so much resources and energy to learn, so it is still to find the direction of focus. When the industry changes and cross-border strikes occur, traditional companies are always in a dilemma. The grasp of the time, the adherence to the goal, the attitude of transformation, all determine its position in the future industry Change Bureau. In the face of online education, Jinxin carefully maintained a balance, can not let the company he paid painstaking risk, but not to let investors see the future, miss the Tuyere. As a result, he prefers to take a more pragmatic approach to the mobile internet revolution. As the founder of the traditional educational institution, how does Jinxin think, choose and layout when facing the change of industry situation? The following is China entrepreneur's exclusive interview with Jinxin: CE: From the end of last year, the internet education boom is very fierce, many biographyAll educational institutions are moving towards online education, feeling you are a bit slow. Jinxin: I think it is still to calm down, do something in line with the business rules, in line with the long-term strategy of enterprise development is more critical. The study of the major itself is a line-oriented model, our core strategy is to say that the line of business to do a solid, higher permeability. Online education, we are more cautious, K12 (basic education) online education although relatively hot, but a lot of conceptual things, really change the industry, change the habits of users have not, so I think doing these gaudy things, in fact, meaningless. If you get an school today, you can get a community tomorrow, and many educational institutions are still dead. If you want to do it well, do it well, instead of doing something imaginary. CE: This March launched the e-learning big intelligent Tutoring platform, is to deal with this wave of Internet education? Jinxin: E Learning is not a simple Internet education products, it is a core system platform, mainly to change the main line of business operation mode, equivalent to a unified teaching resources platform. Our original offline business is located in nearly 100 cities nationwide, nearly 470 learning centers, completed by more than 10,000 teachers. This kind of teaching is more online to control, manage, check, there is not a centralized and unified quality control delivery platform, through e learning large, can realize the unification of teaching, standardization problems. The most important thing is that it can improve the efficiency and capacity of teachers, such as the original one of our consultants can cover up to dozens of users, e learning to launch, can cover hundreds of thousands of users. CE: I downloaded the e-learning app, many features are not available. Jinxin: The current release of the student app, students can only use a self-test, self-assessment, and other parts of the function, no one management tracking, and can not achieve interaction with the teacher. Only to become students under the big line, and then through the e-Learning large app to form a closed loop. E Study of almost all grades of all subjects are covered, there are hundreds of thousands of of courses, teachers prepare to download the pad in advance, do some personal customization, some courses in class without their own speaking, directly play our teacher's courses can be, students after listening to him and students interact. After-class push and classroom teaching to match the homework, according to the students work, adjust the next lesson content. Ce:e now user more than 500,000, from the line to the offline conversion rate is how much? Jinxin: Of these 500,000 users, about a hundred thousand of are students who learn large, more than 300,000 students who are not big. Our first step is to ensure that users under the line first to use the e-learning, the promotion of the line under the teaching method, so did not do the transformation work, not too much for the more than 300,000 non-students to learn the service, but also organized some competitions and other activities to listen to their products feedback. CE: A lot of educational institutions are moving toward the line, you still adhere to the deep line. Jinxin: We are actually O2O. CE: Even O2O, how do you attract free users to the offline completion of the closed loop? Jinxin: I think O2O is not just from the line to the line, but also from the line down to the line. We are fromLine down to the line, the original line of teaching through the cloud of large data management, such as the whole line of data resources, user habits after doing a good job, will naturally form attractive, so that more users to use online services, then enter the line. CE: Why didn't you think of doing it at the same time? Jinxin: Focus on the problem, first focus on doing a good thing. CE: Do you still insist on a more cautious pace and are there any more radical ways for executives to change the industry? Jinxin: I do not know why you always think of learning to be cautious, conservative, our internal changes in fact very exciting column, we are making great efforts to change the core business. With the e-learning big promotion line, this strategy everybody agrees. CE: Pure online educational products when are you going to launch it? Jinxin: If you want to do a pure online products, minutes came out, what problem solving artifact, photo answer questions, what the question bank ... But there is no point, I want to have a good support first. Hope that the end of this year or the first half of next year e learning large line penetration rate can reach 80%-90%, then we consider from the line to the line under the diversion, push user products. CE: After the IPO, the stock has been break, the valuation is not ideal, to the outside feeling is in a leisurely state, this is related to your character? Jinxin: My character is not easy to tell, I can't evaluate it. I think it's related to the business model of learning itself, and compared to other models, it's really a less profitable and more complex management model. It's not so sexy in earnings and financial returns, we have to admit, so now it's going to change by pushing e-learning and so on. Second, learning in 2011 made a big mistake-the need for radical, we chose to conservative, missed a number of development opportunities, resulting in a more difficult to adjust after the years we have been slowly adjusting. The market still depends on long-term value, it's not important to see your income growth, profit margin growth, and operational indicators change, not to say that it's a concept today, and who's going to run a joint venture tomorrow. It's important that these are reflected in the final financial returns and you'll know what to do when you see it. CE: There is a big gap between your share price and valuation in the good future. Jinxin: Capital market valuation methods and stock prices, mainly with profit margins, growth rates, growth and other factors, compared to our revenue and a good future, but the profit margin than they are much lower, I think it is the business model (the reason). It's true that learning is a relative disadvantage in this respect. CE: Apart from e-learning, have you considered taking other measures to do the share price and valuation? Jinxin: We may be more rich in the product line, such as we now push the personalized group, growing fast. One-on-one counseling audiences are those who pay more than a strong person, after all, the crowd is limited, and personalized group fees are one-on-one 50%-70%, it covers more people, and higher profit margins. CE: What percentage of future one-on-one and personalized groups will be maintained? Jinxin: There is no particularly obvious line, one-on-one is not necessarily a particularly healthy thing, we hope it'sThe proportions are diluted, but the whole plate is growing, and one-on-one is likely to shrink to 90% this year, or almost to 85% next year. We have also made some adjustments in the management of the campus, originally opened a line under the center area to 800 to 1000 square meters, decorated 2 million or 3 million, now more flexible, a center 3,500 square meters can also be decorated less than 1 million, so that will soon be profitable. CE: What is the adjustment in the management mode? Jinxin: I can't say now what kind of organizational structure, network, pyramid or matrix, we will find a suitable framework, hope to maintain the vitality of this organization. CE: You more than 10,000 teachers take up so much manpower, will change the cost structure? Jinxin: It will change, but it is not easy. We now allow each teacher to increase production capacity, after the increase in production capacity, the cost of the result will naturally change. CE: You have added 32 new teaching centers this year, now rents, manpower are very expensive, why did not think in some places to use the line to cover the way to open the teaching center? Jinxin: This is not contradictory, because you online service of the crowd with the offline services of the crowd needs completely different, experience is completely different. Offline users, may pay 100,000 yuan a year, online is unlikely. Learning the advantages of its own is to provide customers with a long-term one-on-one personalized counseling, our customer value is very high, this is not online comparable. If e-learning can greatly improve the line capacity and efficiency, offline expansion is no problem. We basically open the number of learning centers each year, accounting for about 10% of the total, almost forty or fifty. CE: Many educational institutions are entering K12 online education, are you worried that your teachers will be dug away? Jinxin: Learning large business is not the teacher as the center, rely on the teacher's performance or charm to attract students, it is relying on a service flow, relying on the user's depth of understanding and services, rely on E to learn a large system to control students. Therefore, the teacher can not do this thing, perhaps new Oriental teachers will (be dug), because they rely more on the ability of teachers, charm. CE: Many organizations from all over the country to find some teachers in the online teaching, also not necessarily have to star teachers, often speak well on the line. Jinxin: In fact, you analyze this model, the first serious dependence on the flow, the second by 20% of the teachers to pull 80% students, or a minority of (opportunity), like the Open Taobao shop, millions of of the business really how much money? In this platform is the same, must be the most characteristic star teachers occupy the majority of the market, How do you get many other teachers to survive? This is the Internet can not solve the problem, it does not make every teacher in the Internet have their own space, simply do not. CE: So you're not worried about this one. Jinxin: No, you have to understand that this is how it works, naturally it will produce this result, you have to analyze this point, what are you afraid of? CE: Do K12, parents are very important piece, you have no community how to maintain communication with parents? Jinxin: This is the specific market play problem, to ensure that your coverage. We do a lot of work online, including in community communitiesMore lectures, in the school around the bookstore, shopping malls have propaganda, stationed point, we push the force is very heavy. The next e-Learning conference is a breakthrough, it has parents section, parents can see the students on the whole process of learning and content, he can also interact with the teacher, so slowly the parents to attract in. CE: The future intends to lock primary and secondary schools, or will the upstream and downstream extension? Jinxin: or in primary and secondary schools, the market is big enough, others are coming here, we are in a very large market, survival rate, saturation is very low. CE: How do you think about acquisitions? Jinxin: We are the acquisition of the company must be in the product, user level or geographical complementarity with us, if with learning Datong quality especially serious, we temporarily do not consider. Not exactly an online education company, but includes online. CE: You are from the background of the Internet, but I feel that when making a lot of decisions, it is quite educating people. Jinxin: I have been in this industry for 13 years, must consider the issue from this level, if out of school, out of the education industry, I will also use the way of the internet to think about the problem, but once thought of education attributes, indeed many internet ways do not, can not be hard to do. For example, do online schools to do the platform, the flow cost is too expensive, the traditional schools are relying on the line to sell the year card, it is not sustainable, there is no self-generated flow mechanism, can only be Baidu and other acquisitions.