The 1+8 Things You Need to Know About Edtech in China

The shift to doing good, creating a holistic education program and 8 nuggets about Edtech in China

Furuzonfar
Nov 27, 2018 · 5 min read
To truly understand Beijing, there are 2 things you must experience: pollution and long queues.

On other nuggets from the conference, we will do a quick hitting point-by-point summary:

The following 8 nuggets did not come from the above panel.
  1. On a similar note, KOLs (aka influencers) are big. KOLs in China are bigger. Mom KOLs in China are the biggest. The best way to spread the word amongst Chinese Edtech consumers is through KOL Moms.
    Side-only-in-China-note: one of the keynotes was given by a private tutor —Kaiwen He. Key nugget is this private tutor has 6.6 million followers on Weibo (Kobe Bryant has 9 million Instagram followers).
  2. Beijing’s de-emphasis of standardised exams, combined with change of wind sweeping “hard” education away. Beijing is aware that the population needs to be more creative, holistic and value-add; precisely what they are addressing.
  3. Saying a lot by not saying anything: Not a single mention of the ongoing trade-war. Even though the event had almost 1,000 non-Chinese attendees.
  4. B2B businesses, especially in Education are still in the early stages of their development. Most of the successful Education businesses in China are in B2C space. The conference reflected that, where most of the “market entry” strategy workshops were focused on how to get the parent/family/ student to buy in, rather than the school/university/corporate.
  5. There is a growing positive sentiment amongst Chinese Edtech to sell to markets such as Turkey, Russia and other markets shunned by the US/European players. Chinese Education companies feel the consumer behavior is closer to their own, compared to US/European markets.
  6. Pricing is critical in China. The more ways you can price your product, the better off you are. Group buying, term/yearly discounts, rebates on social shares — and everything in between. The more ideas you have on your pricing, the better chances you can sell, and ultimately succeed.
  7. Valuations are cooling down. Cooling down is a relative term, but going from crazy to not crazy is still cooling down. Long term everyone is better off; short term, founders will have a slightly harder time fundraising.

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Thanks to Tytus Michalski.

Furuzonfar

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Most of what I write/say is regurgitations of people much smarter than me.

Fusion by Fresco Capital

Connecting innovation across sectors, borders, and worlds.