In the wake of China's "Double Reduction" policy that drastically curtailed after-school tutoring services, education giants have turned to an unexpected avenue for reinvention: livestream e-commerce. While New Oriental Education gained viral fame with its bilingual product demonstrations, rival TAL Education (operator of Xueersi) appears to be carving its own path in this new landscape.
Financial Turnaround: Early Signs of Success
TAL Education's latest financial report reveals promising results, with net revenues reaching $294 million for the period ending August 31, 2022. The company recorded operating profits of $14.89 million, primarily driven by learning services. Notably, content solutions now account for 15% of total revenue—a 5% increase from the previous quarter—demonstrating the growing profitability of its educational materials and smart learning products.
The Livestream Revolution: Educational Materials Take Center Stage
Industry data from Publisher Magazine's TikTok sales rankings shows Xueersi achieving remarkable success, with nearly $7 million in textbook sales within six months—second only to New Oriental's livestream achievements. This underscores the significant potential of educational materials in livestream commerce.
Xueersi operates multiple official accounts on Douyin (China's TikTok), with its most popular channel, "Xueersi Self-Learning Machine," boasting over one million followers. Specializing in premium-priced educational devices (typically over $140), the account generates between $35,000-$70,000 in monthly sales. Another account, "Xueersi Secrets," with 900,000 followers, achieves even higher sales of $105,000-$140,000 monthly. Hosts tailor product recommendations to different age groups and learning needs, attracting significant parent engagement.
Parallel Strategies: "Secrets" vs. "Treasures"
Xueersi's "Secrets" series bears striking resemblance to New Oriental's "Treasures" collection—both targeting the educational materials market through livestreams. This convergence suggests the viability of the model, with Xueersi already demonstrating measurable success in smart learning aids and textbooks.
Post-Policy Demand: A Thriving Market
Despite regulatory changes restricting formal tutoring, parental demand for quality home learning solutions has intensified. Industry data reveals textbook sales reached $1.5 billion in 2021, accounting for 11% of total book sales. Educational materials dominate the K-12 market with a 55.59% share, while national textbook sales grew to 22.21% of the market by Q3 2021.
While mathematics, English, and Chinese materials dominate, significant opportunities exist in other subjects. Xueersi has developed comprehensive series like "Weekly Learning Daily Practice," "Secrets," and "Innovative Thinking Challenges" covering diverse subjects and levels. New Oriental counters with its "Treasures" series and "Method Boxes," creating intense competition in this expanding market.
Divergent Strengths: Differentiated Approaches
New Oriental's established reputation in English education and innovative bilingual livestreams propelled its early success, with its "Elementary English Treasures" selling nearly 100,000 units. Xueersi, meanwhile, leverages its broader expertise in STEM subjects and gifted education, adopting a bottom-up strategy through its "Xueersi Premium" account that now ventures into lifestyle products.
The Imitation Debate: Criticism and Opportunity
Accusations of imitation have generated controversy but also increased visibility for Xueersi. Third-party data shows its premium account achieving $140,000-$350,000 in monthly sales—still trailing New Oriental but surpassing many competitors. Its textbook sales performance validates the strategic adaptation, if not outright imitation, of successful models.
Future Prospects: A New Chapter for Education Commerce
The transformation of these education giants demonstrates viable pathways under regulatory constraints. By capitalizing on market needs, leveraging core competencies, and embracing digital commerce, education companies can navigate challenging environments. Livestream educational sales may well emerge as the sector's next growth frontier—provided companies balance adaptation with genuine innovation to maintain competitive distinction.