VIPKid Announces Positive UE in H1 2020 and Shows Bellwether of English Education Products
2020-08-24 21:37:13

As one of the largest online English education companies in China, VIPKid announced that the company had achieved positive unit economics(UE) for two consecutive quarters ended June 30, 2020. The cost of customer acquisition decreased by 45% year-on-year, with the business continuously growing and prospering.

At the same time, the unicorn never stops exploring new forms of the product. As exam-oriented and competency-based education for children are of equal importance in Chinese parents’ eyes, VIPKid developed a new online English curriculum for Chinese students from 5 to 15-year-old.

Chinese teachers and North American teachers simultaneously teach the courses, and the prices are lower compared to its 1-on-1 class taught by North American teachers.

Specifically, the product provides each student with personalized solutions based on AI technology. A Chinese teacher and a foreign teacher will then be in charge of different learning parts of the same course. Chinese teachers focus more on exam-oriented content, and foreign teachers care more about communication abilities and culture education.

Without marketing promotions, sales of the product increased by 180% in Q2 2020, compared to the first quarter this year, plus, its monthly sales exceeded 10,000 in July.

Although VIPKid insists on diversification as a business strategy, English education is always its mainstay and will never be shaken. Therefore, it is imperative to dig into more specific needs of the existing 800,000 students. In the future, VIPKid is devoted to AI development, aiming to offer more cost-effective online courses so that more families could afford learning resources with high-quality.


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