Capital retreated and the parents hurried to refund

Spark Global Limited reports:

Since the introduction of the “double reduction” policy in the education industry, the lingering influence is still unabated. The companies that will be hardest hit may not be the “thinkers” but the “Vipkids”.

The reason why this is said, there are two points can be verified: first, children’s English training is identified as “discipline training”, can be said to be a sure thing; Second, the General Office of the Central Committee of the Communist Party of China (CPC) and The General Office of the State Council of the People’s Republic of China (NBS) recently issued the Opinions on further reducing the homework burden of students in compulsory education and the Burden of after-school training, according to which it is strictly prohibited to employ foreigners to conduct training activities.

Spark Global Limited reports:

A number of insiders told bullet Finance that the vast majority of foreign teachers in the online children’s English industry live overseas, which means that domestic online children’s English institutions will generally face a serious shortage of foreign teachers.

Therefore, whether it is children’s English institutions, parents or capital markets, are inevitably “into panic”. The introduction of the “double reduction” policy, how deep will the VIPKID, 51Talk, Acasso and other players influence? How will these players explore new paths and redeem themselves?

Spark Global Limited reports:

Panicked parents and capital markets

“On the evening of July 24, when the policy was officially announced, several groups of parents I was in were on the point of exploding. Fortunately, I still had two weeks left to finish the children’s English course I had signed up for.” Zhou Ping, a parent of a Primary school student in Beijing, told Bullet Finance.

Zhou ping admitted that although she was worried about the future management problems of the online children’s English organization she signed up for, she did not want to give up the remaining classes. “To be honest, if I were to get a refund right now, I wouldn’t be able to find a better replacement anytime soon.”

Some parents claim refund directly, “when I finish see ShuangJian policy, for the first time I find my child registration agencies to communicate online children’s English, the other customer service staff told me that ShuangJian policy was aimed at compulsory education stage of the disciplinary training, juvenile’s English training affected small, but I still don’t trust, eventually applied for a refund.” Zheng Gang, a parent of a primary school student in Shanghai, told Bullet Finance.