The "one-to-one" mode of growth and deceleration in learning education

Author: Han Yanming's "one-to-one" mode of pioneering education (NYSE:XUE) is now experiencing growth pains. After the 2012 encounter problems such as executive turnover, empty capital, and "one-on-one" mode, the year-end of February, the school of Education announced the full 2012 earnings. Earnings showed a net profit of $2 million a year for 2012.　　In fiscal year 2011, the figure was 4.8 million dollars, and net profit halved more than half.　　"China Business newspaper," the reporter learned: in the face of declining profits, learning education 2013 will shrink expansion strategy, slowing the pace of the new teaching Center, the development direction will be from the large-scale layout of the horse race to the profit-oriented company's internal governance. Capital market in the early December and the beginning of January this year, the market value of education was once lower than the cash and cash equivalents held by the company, thus triggering a big discussion in the industry. In Beijing Long Management Consulting Co., Ltd. Managing director Sun Xun View, this is a very interesting phenomenon. In a mature capital market such as the United States, investors will start from the value of the company, through the company's net profit and future profitability to judge the value of the company, but the company's market capitalisation is less than the cash held by the company is very rare.　　If shareholders are not bullish on the company, they will ask the company to return the cash to shareholders as cash dividends. In response, the joint founder and CEO Jinxin, January 18 announced plans to use personal funds to acquire up to 330,000 shares of the United States depository vouchers.　　The scheme has been in force since December 28, 2012, ending on December 31, 2013. Companies or founders choose to buy back, indicating that they think the current price is not enough to reflect the company's current or future value.　　After Jinxin announced the repurchase, the share price of the school education has rebounded. However, on the evening of February 4 in Beijing, Goldman revised its previous investment report on education and offered a "sell" rating to the major education stock.　　Goldman Sachs said: the formula error (modeling error) caused a series of data errors. To this, jinxin to the reporter Tan Chen: "cause this kind of phenomenon has certain objective reason, macroscopic on the stock general is implicated, even the new Oriental also was short; at the same time, the education itself also has the senior management turnover, the administrative communication is not smooth and so on. "Capital Laboratory founder Wei Wei analysis, according to the results of recent years can be seen, the expansion of the two years of learning education is very fast, leading to increased cost of profitability, and last year, the number of Austrian restrictions on the company's business impact."　　The education of futurist should make the balance between scale and profit, and realize fine development.　　Hourich, a senior consultant with June Consulting Group, thinks that education is the pioneer of "one-to-one" mode, although after years of trying to find a way to scale, but so far they have not found a good solution, the company faces the challenges are still very large. "One-to-one" dilemma "one-to-one" mode profit is too low is the general view of the industry. Last year, CCTV also exposedLight some of the "one-to-one" mode of education enterprises of bad behavior, so that the entire industry is disgraced. Wei Wei by comparing the data of several other listed education and training companies, the gross margin of education is lower than that of other tutoring peers. The potential of learning a great education lies in the ability to excavate the added value of a "one-to-one" model.　　At present, "one-to-one" mode accounted for more than 90% of the business education ratio, the rest of the "class" mode. "Relative to the team mode 10%~20% profit margin, the current ' one-to-one ' mode can not reach this level." "Jinxin explains that the" one-to-one "model is more complex to manage, small class mode 4, the parents of a newspaper is 2, and" one-on-one "is a long time in the enrollment, the cost of rising management more fastidious; In addition, the small class model is the public experience, the quality of service for students more easily standardized, and" one-on-one "is the personalized experience　　, students and parents have higher expectations. Clearly, the "one-to-one" model of profitability is difficult to rival the "team" model. Relatively speaking, the former is higher than the latter, although the cost of the former is higher than the latter, but the per capita value of the company is lower. In the 2012, the education Center closed the central teaching point of a central city because of the rising rent of the teaching centre. In this respect, Jinxin said that the company needs to control costs, teaching points closed and open is a very normal business behavior, but the rent rise in the last two years is an indisputable fact. "In the past 400,000 to 500,000 yuan, we can open a teaching centre and now we need more than 1 million yuan."　　Jinxin said. For the requirements of capital markets and the development of education and training enterprises, Chao Xiaolin, vice president of "one-on-one" education group, said that the current education and training industry in the promotion of capital has a rich content and form, while consumers also require education and training enterprises to return to the essence of education, operators should seize the opportunity to promote the company change. "Companies can not just meet the capital's profit requirements, more from the meaning of education itself." "In Chao Xiaolin view, the tutorial market will present several major trends, the pattern of products will become the mainstream, stereotyped teachers will become the new favorite, a teacher said a certain knowledge point; the teacher's personal studio will become fashionable. Sales-oriented education consultants will gradually fade out, star teachers will appear in the broker team. These trends will have a knock-on effect on existing models, as institutions can use their platforms to work with teachers ' personal studios to provide management services such as venues to teachers.　　He even believes that the education and training industry in the future must be a teacher-led market. "We have also tried small classes, but the company's focus will be on a ' one-to-one ' mode as the main body, we have confidence." Jinxin said, "one-to-one" fees are much more expensive than small classes, the company's revenue is still growing, which shows that there is indeed a market demand.　　Therefore, the major education in the future will be enhanced through management to enhance the company's profitability. To the effectiveness of internal control "2013, the focus of the work will be to improve the management of the company, after experiencing rapid expansionLift up the management.　　"Jinxin said the company's management costs have risen a lot in the last two or three quarters and there are many things to do." Jinxin also in the reflection: there are some problems in the past management of learning and education. For example, due to rapid expansion, internal management has not been followed, but also caused some waste. This year, he said, it would have to be transferred from outward scale to inward efficiency. The speed of the new teaching centre will be slowed down, while the internal management should be strengthened. "The early two years of investment in IT systems will be effective, optimize processes and financial management." Online education is only a small part, in fact, more input is directed at the management system of the teaching center under the line.　　He cited, for example, that there were 50 teachers in the past, but 20 may be free, but now through the system and management, can be flexible deployment of free teachers to the adjacent center to improve input-output ratio, improve the efficiency of single person. However, some industry experts also said that the current education and training industry consumers are now mature, is no longer a one-time payment of tuition fees for the whole year, or even one months, and for educational institutions, rent and teachers and other personnel costs are significantly higher than the increase in tuition fees, All these will be the challenges that need to be confronted by the extracurricular tutoring institutions.