The transformation of China's education and training institutions has drawn widespread attention since the implementation of the "Double Reduction" policy. While New Oriental gained remarkable success with its bilingual livestream e-commerce model, another education giant—Xueersi (operated by TAL Education Group)—has quietly entered the livestreaming arena, aiming to capture a share of the educational materials market. But can Xueersi's strategy match New Oriental's breakthrough?
Financial Performance and Market Positioning
TAL Education's Q2 2023 financial report revealed net revenues of $294 million, with operating income reaching $14.89 million. Notably, its learning services business contributed significantly to revenue, with intelligent educational aids selling hundreds of thousands of copies. The content solutions segment also showed strong growth, accounting for 15% of total revenue—a 5% increase quarter-over-quarter.
This success is reflected in Douyin's sales rankings. According to industry data, Xueersi's educational materials achieved nearly 50 million yuan in sales within six months, second only to New Oriental's "Oriental Selection" channel.
Douyin Strategy: Building a Content Matrix
Xueersi has established multiple official accounts on Douyin, with "Xueersi Self-Learning Device" being the most prominent—boasting over 1 million followers. The account primarily sells educational devices priced above 1,000 yuan, generating between 250,000 to 500,000 yuan in monthly sales.
Another key account, "Xueersi Secrets," has attracted nearly 900,000 followers. Its 30-day sales range between 750,000 to 1 million yuan, with hosts recommending age-specific learning materials like the Xueersi Secrets series to parent viewers.
Competitive Landscape in Educational Materials
The "Double Reduction" policy has inadvertently stimulated demand for educational books. In 2021, auxiliary teaching materials accounted for 11% of China's total book sales (10.855 billion yuan), with K-12 materials representing 55.59% of the student book market. Beijing OpenBook data shows the educational materials market share grew to 22.21% in Q3 2021.
While mathematics, English, and Chinese dominate the subject distribution, significant opportunities remain in other disciplines. Xueersi has launched products like Weekly Practice and Thinking Innovation Challenges , whereas New Oriental focuses on English-centric materials such as New Oriental Treasure Chest .
Imitation or Innovation?
Following New Oriental's bilingual livestream success, Xueersi launched "Xueersi Premium" to sell household goods, food, and electronics—a move perceived as emulating "Oriental Selection." Third-party data shows the account achieved 1-2.5 million yuan in monthly sales, surpassing many competitors though still trailing New Oriental's performance.
However, mere imitation may prove insufficient. Xueersi's long-term viability hinges on differentiation: leveraging its STEM strengths while innovating in content delivery. The challenge lies in developing unique brand equity beyond replicating existing models.
While Xueersi's preliminary results demonstrate the potential for education-to-ecommerce transitions, sustained success will require original strategies tailored to its academic expertise and market positioning.