New oriental photo: CFP
The decision by education company New Oriental to donate around 80,000 sets of school benches and chairs to rural schools and the closure of nearly 1,500 teaching locations was a trend on Chinese Twitter on Monday. Sina Weibo. This came after the company announced its business transformation towards selling agricultural products.
Since the Chinese authorities implemented a so-called “double reduction” policy in July with the aim of alleviating the burden and anxiety of students and implemented a series of measures regulating the private tutoring industry, companies Chinese private schools have adjusted their business structure.
Analysts said vocational training or moving to other industries are the main directions education companies are taking, although some have simply closed their doors.
Yu Minhong, founder of New Oriental, announced in a live broadcast session on Monday that the company will establish a large platform to sell agricultural products through live broadcast sessions to which he and hundreds of teachers will participate, to support rural revitalization and help local farmers. increase their professional skills.
Yu also told Sina Weibo that the company has donated nearly 80,000 sets of desks and chairs to rural schools across the country and closed about 1,500 teaching locations due to its business adjustment.
“New Oriental’s donation of supplies to rural schools not only supports schools and prevents waste, but also helps the company connect with more local resources in a bid to prepare for the launch of the agricultural platform and further define its future direction in rural education. sector, ”Zhang Yi, CEO of iiMedia Research Institute, told the Global Times on Monday.
New Oriental’s offline training activity gradually declined, and it completely stopped recruiting elementary and high school students in September, according to media reports.
But the move towards selling agricultural products does not mean New Oriental has completely abandoned the education sector, financial media stcn.com reported on Monday. The company announced in September that it would upgrade its business targeting students, covering major exams such as the College English Test.
The scale of the quality education market will gradually expand, and the industry’s compound growth rate is expected to reach 20.5%, and the market scale will reach 631.32 billion yuan. ($ 98.65 billion) in 2022, according to data released by iiMedia Research Institute.
Zhang noted that the market potential for quality education and vocational education is still strong, especially with the increase in the educated population, the demand for talent, and the increase in disposable income per capita in the future.
A recently fired employee of an education company told the Global Times on Monday that she was inclined to leave the education sector and seek other employment even though she received several invitations from companies related to the education.