The impact of the double reduction policy issued in July is gradually emerging. Compared with discipline training enterprises, most of them have room for transformation. It goes without saying that the English track is experiencing a violent shock at the moment.
As early as August 7 two days ago, the official wechat of vipkid released a letter to students and parents. In the letter, vipkid clearly mentioned that from now on, it will no longer sell new lesson packages involving foreign teachers; From August 9, the renewal of courses involving foreign teachers will no longer be open to old users.
Although in the past 8 years, vipkid has tried to incubate many brands such as mathematical thinking and K12 large classes, it has not gained a foothold in the market, and its business composition is still dominated by English foreign teachers, which is relatively single. Under the influence of the policy, if the main business or even the “only core business” can no longer be delivered for teaching, it is undoubtedly a “drastic draw” for vipkid.
In order to make up for the impact of the termination of foreign teachers’ business on the company’s operation, in this letter, vipkid said that “vipkid Adult Course”, “bilingual intangible cultural heritage literacy course”, “Chinese Teaching Oral Course” and “domestic and foreign teaching courses” are at the end of the internal test and will be launched to the outside world.
It should be noted here that in addition to incubating other businesses, vipkid mentioned that one of its future businesses is “teaching at home and abroad”, that is, foreign teachers change their original overseas to teach in China. Only according to the requirements of the opinions, the employment of foreign personnel in China shall comply with the relevant provisions of the state. This provision can be roughly referred to the measures for the appointment and management of foreign teachers (Draft for comments) issued by the Ministry of education in July 2020, and the conditions are very strict（ (the full text of the draft for comments is attached at the end of the text)
Therefore, whether these businesses can really run through and maintain the continuous operation of the company is still in doubt. Including vipkid itself.