Matsushitas water philosophy was born in a special material environment in postwar Japan. From the very beginning, he emphasized the social responsibility needs at both ends of cost and consumption, so that users can enjoy the products and services of Panasonic like drinking tap water.
This business idea, which belongs to the category of platform thinking in the network era, is naturally penetrating in the industrial age. As a result, Matsushita is the God of Oriental management who can enjoy the same glory as Henry Ford in the last century.
The mobility of knowledge determines that it should have been obtained by the lowest cost and the most convenient way like tap water. This is not only the problem of business model design, but also the unique corporate social responsibility of knowledge society.
Miwenjuan, founder of vipkid, said in a conversation with Lu Qi, I have been a part-time tutor since I was 15 years old, teaching children English. Since then, teaching has always been my interest, and learning has become my motivation. For example, the process of teaching children, let me know that in fact, every child is full of curiosity. We should connect them with the best teachers in the world, the best curriculum content, and create a learning experience that can be imagined and explored. The process of being an English tutor also taught me that learning is very important for the teacher himself. Only if you learn more and take lifelong learning as your belief, can you teach better and help children learn better.
In fact, social education is a kind of ultimate social responsibility, which provides not only knowledge and skills, but also lifelong employability. This is also Druckers expectation for the knowledge society.
These are the sociological factors that make online education exist as an independent business type and obtain long-term capital support.
Think like Matsushita Matsushita
An epidemic situation has made Chinas online education market more and more hot, and also made the companies involved more crazy.
The variety shows have become the major online education brand arena. From the initial exposure of the brand at the beginning and the end of the film, to the frequent verbal broadcasting of the host and program guests, many netizens expressed emotion: watching a variety show can be dominated by the education platform, fortunately, I have graduated. As one of the leading industries of variety show, online education never cares about eating, drinking, playing, singing, dancing and competing -- as long as the audience is large, it is my destination.
Behind this is a set of traffic control theory: traffic is the life of online education.
Spending money to buy traffic is the standard operation of Internet products. For online education, can it be picked up by more people by spending a lot of money on variety shows and movies? Can it be the real driving force for sustained growth?
Is it a good time to spend money or to spend money all the time? In other words, is the crazy investment to obtain traffic a panacea for the online education industry, or is it a heavy burden to drag online education into an irreparable situation?
Matsushitas reflection on Matsushita coincided with the rapid growth period of Japan after the war, that is, the 1960s-1970s. At that time, Japan was quietly approaching the United States with its unique industrial manufacturing concept. It was at this time that Matsushita saw that the Japanese industry was still relying on a large number of loans to purchase equipment when it exceeded its own strength and capacity, resulting in overcapacity and weakening of the enterprise system.
The result of this situation is that once the external financial environment changes dramatically, fat enterprises will be vulnerable. Therefore, Matsushita adjusted the companys strategy from transitional growth to healthy growth, so as to relieve the pressure of sales channels, and thoroughly reformed the companys sales system.
In the complete works of Matsushitas management, we can see many reflections and warnings of Matsushitas expansion of enterprise scale and overstaffing of organization. He once sighed in a short article, now Panasonic is standing at the point of divergence between development and collapse..
As a result, Matsushita has put forward many interesting but extremely cool ideas, such as tortoise style expansion and proper management. The expansion of organization scale must be due to the expectation of revenue scale, but if this expansion is beyond the scope of its own ability, then the enterprise should carefully consider how much our ability can do.
Press the stop button, vipkid co-founder and president Zhang Yuejia said that the stage of burning money regardless of cost is gone.
Unless the scale of the money burn can be a barrier to competition, this investment is of no value. Zhang Yuejia said.
In fact, in a fully competitive field, burning money does not bring competition barriers. Whether it is the concept of core competitiveness or ecosystem, capital is not the first prerequisite. It is your innovation ability that plays a decisive role, which comes from the adaptation of management and operation.
Founded in 2013, vipkid has created a unique category of beautiful foreign teachers in North China. It is the first time to connect global high-quality education resources on a large scale through the Internet. It has obtained investment of nearly 1 billion US dollars from Sequoia China, Jingwei, Tencent, Yunfeng and other top investment institutions. It has led online education into an investment outlet and is the pioneer and leader of Chinas online education industry.
Even so, vipkid is difficult to avoid traffic traps and industry drawbacks. This industry star company has been pushed to the top of the storm for several times due to the negative news such as layoffs and burning money.
The high cost of customer acquisition has become a heavy burden for consumers and online education companies. On the one hand, it is the ever-increasing class registration fee, on the other hand, it is gradually increasing the proportion of revenue.
According to the statistics of yiou.com, in the summer of 2019, the total marketing and promotion expenses of Toutou online education company exceeded 4 billion yuan, of which the market investment of XRS online school reached about 1 billion yuan, and that of ape tutoring and homework help was about 400-500 million yuan.
Obviously, MI Wenjuan and vipkid do not want to continue to sink in the burning money to win customers. The earlier the end of such brutal competition, the more conducive to the long-term development of vipkid and the whole industry.
Mi Wenjuan chose vipkid to reduce negative and increase energy: significantly reduce the cost of customer acquisition, improve the unit operating profit (UE), optimize the organizational scale, reduce the number of employees, and improve per capita efficiency.
According to the 2020 China online Youth English education market report released by the Chinese Academy of Sciences in June this year, Chinas online young childrens English training market includes North American foreign teachers one-to-one, Philippine one-to-one, small class, large class and light class. Among the first mock exam, the one to one scale accounted for 58% of the total industry revenue. And in this field, vipkid a share far more than the sum of other brands, is a well deserved industry elephant.
Meanwhile, vipkid has 11000 employees by the end of 2019, which is too large for an education service company. At the same time, due to the low human efficiency, vipkid is evaluated as diseconomies of scale.
No matter what kind of strategy, people are the decisive factor. At present, more than 10% of vipkid employees have masters and doctoral degrees. 6000 foreign teachers graduated from Ivy League schools, and famous teachers of rice online school all graduated from Qingbei and other famous schools.
In terms of salary incentive, vipkid is no longer in a big pot, but rewards the employees who have made contributions, so as to improve the development and incentive system of outstanding employees with more prospects.
At present, vipkids post-90s employees account for 65%, of which the post-90s employees of manager level account for 42%. At the same time, vipkid enterprise university has established a complete staff training system, covering from ordinary employees to middle and senior managers.
3u3001 To understand ones adaptive ability is to optimize the scale of the organization and improve the efficiency of internal communication and cooperation.
Since January this year, vipkid has adjusted its organizational structure. Through a series of organizational structure carding, further straighten out the relationship between different centers and departments, integrate the organizational structure, reduce organizational redundancy, and improve the operational efficiency of the organization, so as to better meet the needs of users.
At the system level, vipkid has established and consolidated the 3C system: introducing CTO to enable education with science and technology; promoting coo to build professional education service ability; introducing CFO to enhance data-driven decision-making and strategic ability.
At the employee level, vipkid launched the quarterly OKR employee assessment to clarify and track the objectives and their completion, and to make sure that the companys overall annual objectives are consistent with the individual OKR of employees, so as to improve the organizational cohesion of employees.
Half a year later, the elephant has been slimmed down successfully.
Thin, is the appearance, strong body is the core.
On August 18, 2020, at the product strategy conference of product efficiency escort orange wind breaking waves, vipkid announced that: the companys unit operating profit (UE) has been positive for two consecutive quarters, 90% of the channels have achieved profit for the first time, and the performance has maintained continuous growth.
This means that from this year on, we can make money for every student who comes in from vipkid. Vipkid co-founder and president Zhang Yuejia interpreted this.
To a certain extent, this means that vipkids strategic goal of making a dollar per class is expected to be achieved one year ahead of schedule. In 2019, the founder, MI Wenjuan, proposed this goal, which was expected to be achieved in 2021.
In my opinion, what is more important than that of UE for six consecutive months is that vipkid has found a fit and balance between speed, health and sustainability.
In Zhang Yuejias opinion, the reason why the company has been able to become a regular UE for two consecutive quarters is mainly due to three aspects: first, the companys clear strategic objectives ensure the business focus and stability; second, the accumulated brand potential energy has brought the renewal rate and referral rate far higher than the average level of the industry, resulting in a substantial reduction in customer acquisition costs; third, the improvement of the companys management system and organizational changes The reform has greatly improved the efficiency of internal staff.
Obviously, the direct reason for ue to become a regular is to reduce the cost of acquiring customers. Zhang Yuejia said that after three quarters of continuous optimization, now vipkid and the markets first order about 2000 to 3000 yuan of products, the customer acquisition cost is basically the same, even lower.
For the education and training industry, the core of reducing the cost of customer acquisition is word-of-mouth referrals from old users to new users. Especially after reaching a certain scale, the tap water growth mode based on word-of-mouth communication is more precious.
Word of mouth comes from sustained and stable quality products and services.
The scale expansion with teaching quality has always been the strategic goal pursued by vipkid. Since the second half of last year, based on the stable pattern of one-to-one track market, vipkid has been pursuing product innovation and efficiency improvement on the basis of quality and scale.
Behind this is the correct grasp of fast and slow.
Based on this, MI Wenjuan set the target for vipkid in 2020 to be profitable.
In this way, vipkid has won the present and laid a solid foundation for winning the future.
There is no doubt that Chinas online education market is a fertile land.
According to the report on China K12 online education market research and user consumption behavior released by the Key Laboratory of big data mining and knowledge management of Chinese Academy of Sciences, the market scale of the whole online education industry will exceed 540 billion yuan in 2022; among them, K12 online education, as an important branch, will exceed 150 billion yuan in 2022. In the next few years, the growth momentum of Chinas online education market will remain stable.
An unexpected epidemic has accelerated the transfer of offline education to online education and greatly promoted the development speed of online education industry.
However, after a variety of competition, the major online education companies have serious homogenization competition in terms of teachers, courses, sales channels and so on. Affected by the epidemic situation, users in third tier cities and below began to pay attention to and understand online education. It is expected that starting from the summer vacation in 2020, K12 online education brands will start to compete for users in the third and fourth tier cities.
However, there has never been anything achieved overnight, everything is accumulated. For the entrants of Chinas online education, there is nothing unexpected, but preparation is long enough and enough.
Obviously, the competition in this business type has not yet been fully launched. Matsushita has warned his colleagues that its ok if a product is not good, but it must be competitive. Never give the illusion that a war has been won because of the temporary results. He also cited the case of the Yamato during World War II. When the Japanese Navy thinks that it is invincible in the world, the fate of failure has come.
For online education, the boundaries of the platform are not entirely self has the final say. Even if the core competence is established, it is necessary to have the belief to release this ability into a broader competitive space.
Vipkid started a new evolution.
Relying on the precipitated advantages of foreign teachers, brands, technology and service system in North America, vipkid seeks to further expand and strengthen the English track, and begins to launch expansion courses, aiming to seize the new market, establish a new moat, and create a second growth curve.
At the beginning of this year, vipkid officially launched the rice online school, which was regarded as an important symbol for vipkid to enter the online K12 large class class class and excellent training market. Led by double teachers and famous teachers in the north of Qing Dynasty, rice online school leads more than 50 teaching and research teachers to polish a more effective course experience.
According to Zhang Yuejia, the person in charge of rice online school, at present, the conversion rate of low-cost courses to regular courses has reached 18%, and the renewal rate has reached 75%. A number of core indicators have entered the first camp of online large class courses, and has independently completed a round of 80 million US dollars of financing.
In order to meet the students needs for English examination, vipkid has launched excellent courses for Chinese and foreign teaching and training. The course adopts Chinese and foreign double teacher teaching, based on Oxford University Presss classic teaching materials for localization and independent research and development, and is taught in the form of group interaction. As of July this year, the monthly sales of the courses exceeded 10000, with a month on month growth of 180% in the second quarter.
Matsushita has already used Matsushita Electric Appliances to write a heavy ink for the history of human business, and the story of vipkid is just beginning. The common point between them lies in the concept of water philosophy, which is the moral basis for the existence of the whole industry and enterprises.
How to make social education really like tap water, the test is a company after the psychological superiority period of calm and reflective ability. For the top management team, we should always grasp two clues: one is to match the times, the other is to match the current ability.
The first clue is time, and the second clue is space.
Wait and see. (source: Dade finance, Hao yaxia) source: mass news editor in charge: Chen Tiqiang_ NB6485