Many Chinese companies “save themselves” through online courses during the Covid-19
“Internet likes a super-brain, which made the most timely and effective response in face of the Covid-19.” Said He Yifan, President of Jin Jin Le Dao Book Club.
While many Chinese companies were damaged seriously during the Covid19, some Internet companies had unexpected developments. According to data from IMEDIa.com, 63.1 percent of Chinese users bought knowledge payment products during the outbreak.
According to the Chinese Netease, Youdao company released the financial report of the first quarter of 2020, showing that the net revenue of the Youdao application was $110 million, with a year-on-year growth of 139.8%. Netease Youdao is the company to provide online learning products through big data technology. Additionally, it has launched a series of online products such as Youdao quality class, Youdao cloud notes, and Youdao promotional course. Economies of scale and the optimization and adjustment of teachers’ salary structure brought the gross profit rate of learning products and services to 48.7%, compared with 18.5% in the same period last year.
The net income of Netease Youdao in the first quarter of $110 million during the Covad-19 and maintained a high growth of online courses.
According to the financial report of the Youdao application, the number of people paying for Youdao courses reached 276,000, which increase by 59.5 percent from the previous quarter. Moreover, there were 153,000 people paid for its full price courses, which up from the previous quarter 358.7% year on year. In the first quarter of 2020, Youdao’s unit price was $338 per student, up 158.2% year-on-year.
“The market demand for high-quality online learning has increased dramatically during the Covid-19. Sales of online courses increased 287 percent year-on-year to $520 million in the first quarter. Moreover, the gross profit margin of online-focused learning services reached 52 percent, up from 30 percent in the previous quarter.” Netease Youdao’s CEO Zhou Feng said in the financial report.
Many Chinese SMEs (small and medium-sized enterprises) turned a profit by opening or optimizing online courses during the Covid-19.
According to the data from the National Bureau of Statistics of China, in 2017, there were nearly 62 million individual companies and 28 million enterprise legal persons in China. Furthermore, SMEs account for more than 80 percent, which over 90 percent of the Chinese market. Faced with the crisis, SMEs should be to identify and solve the problem rapidly. The advantage of SMEs is the flexibility of timely adjustment.
Turning offline curriculum activities into online camps is like posing our company to the highway during the Covid-19. The epidemic is also liked a shakeout. The market is necessary to change a lot and give the survivors a bigger share of the market. Through the worst of times, consumer spending will rebound and the survivors will prosper,” Said He Yifan, President of JinJinLeDao Book Club.
He Yifan has organized an online course seminar at JinJinLeDao Book Club.
JinJinLeDao Book Club is a company dedicated to organizing entrepreneurs to read books. “Before the Covid-19, the reading Club has invited a lot of successful entrepreneurs from various industries in China. Those famous entrepreneurs read classic books for participants and share their entrepreneurial experiences. Our target is to help young entrepreneurs find a clear direction along the way,” said Li Jingzhuo, assistant President of JinJinLeDao Reading Club.
As a company focusing on offline education for many years, JinJinLeDao Reading Club has held nearly 300 courses in 218 cities. The number of offline activities exceeding 60,000. However, the offline courses cannot be conducted normally due to the epidemic. The company has suffered heavy losses and laid off a total of 19 employees from December 2019 to February 2020.
“We had to change and broaden new distribution channels at that time. Also, the company has transformed itself from offline to online,” said Li Jingzhuo.
On March 8, 2020, the club has launched “Continuous Recovery — Online Training Camp”. The training camp is the first time for the company to optimize, iterate, and transfer the course system from offline to online.
According to He Yifan, the online training camp has been effective so far, and it has achieved good results for the company. In the era of data, digital transformation is a problem that most enterprises have to face. Our company will continue to burnish their teaching content and technical ability and retain users through a better learning effect and service experience.
He Yifan and JinJinLeDao club’s online course teacher- Famous Chinese writer Chen Chunhua.
Online courses cater to users’ needs when they are at home
Also, the professional optical lens brand Shima Trading (Shanghai) adjusted the marketing model during the Covid-19. Shima Trading is a company that makes camera-swapping lenses. It innovated a series of webcast courses on Bilibili, a well-known Chinese video website during the epidemic to improve user stickiness and boost product sales.
Du Haolin, a user of the Shima online course, said the online course allows her to learn professional knowledge related to photography at home.
“Since February 1, Shima has launched a total of 67 online courses, which will be broadcast on Bilibili every day. Additionally, the lecturers for this course are all very charismatic. During the live broadcast, there will also be a question-and-answer session, and if you answer the right questions, you’ll have the chance to rent the company’s products for free,” said Du Haolin.
This kind of edutainment helped Shima to achieve good sales performance during the epidemic.
At the same time, users who did not catch up with the live broadcast can also watch the playback of live courses.
Du Haolin is taking pictures of his friends with the skills he has learned in online courses.
“Shima’s online courses can be replayed at any time, which makes learning times more freedom. In addition, the courses will incorporate a series of knowledge such as lenses, camera introductions, and home photography. We can use the knowledge to make our own pictures of the landscapes, pets, and flowers around us,” said Du Haolin.
The pictures took by Du Haolin.