by Anton Krotov, Market Researcher at Skyeng company.
Chinese students’ summer break is full of despair — it lasts only for a single month, August, and Chinese “Tiger Parents” are always eager to send their kids to as many summer schools and courses as possible. So, this period is all for work, not for fun. And from the side of Chinese EdTech companies, August is marvellous. But before getting there they must survive, perhaps, the most terrible month of the year — July.
In July a fierce competition between Chinese educational companies that provide K12 after-school services reaches to a totally different level — all big companies start to pump up the advertising budgets of their summer courses up to six-figure sums. For instance, last month each of three top K12 educational enterprises — TAL Education Group, Yuanfudao, and Zuoyebang — have been spending TEN MILLION RMB every day ONLY to promote their SUMMER COURSES (~US$1.5 mln per day). Other top K12 platforms — Zhangmen, 17Zuoye, Knowbox, VIPKID, NetEase Youdao, Fudao QQ and Genshuixue— have spent in total around 3–4 billion RMB (~US$42–52 mln) on similar advertising also in a single month.
In fact, all Chinese EdTech companies are willing to spend a lot of money on this advertising boom for at least one reason — everyone wants to take the largest share of the world’s largest K12 after-school market in its hottest period. This market consists of 59 million students whose parents are ready to pay big money to give their children a better education and more chances to compete for their future.