As the aftershocks of China's "Double Reduction" policy continue to ripple through the tutoring industry, transformation has become the common imperative for education companies. Among various survival strategies, live-streaming e-commerce has emerged as one of the most prominent directions. The remarkable success of Oriental Selection has set a benchmark for others to follow, with former tutoring giant Xueersi now joining the live commerce wave.
Survival Strategies in a Post-Regulation Era
The implementation of China's education reform policy has forced tutoring institutions to confront shrinking operations and plummeting revenues. Live commerce, with its low barriers to entry and high audience reach, has become a lifeline for many. Oriental Selection, a subsidiary of New Oriental, pioneered an innovative "knowledge-infused sales" approach that has inspired widespread imitation across the industry.
Xueersi's Live Commerce Strategy
The former education leader has implemented a multi-pronged approach to live commerce:
Matrix Account System: Xueersi operates multiple Douyin accounts targeting different demographics and product categories, including "Xueersi Premium," "Xueersi Books Official Store," and subject-specific accounts for primary and secondary school students, primarily focusing on educational products.
Product Diversification: Through its "Xueersi Premium Selection" account, the company has expanded into general merchandise including stationery, home goods, appliances, and food products, aiming to reduce reliance on any single product category.
Educational Content Integration: Mirroring Oriental Selection's model, "Xueersi Premium Selection" combines product demonstrations with educational content such as knowledge sharing, musical performances, and book discussions, creating an edutainment shopping experience.
Market Performance and Challenges
Despite its recent entry, "Xueersi Premium Selection" has shown promising results, accumulating over 50,000 followers on Douyin. Third-party data indicates recent monthly sales between $70,000-$100,000, with weekly viewership exceeding 1.3 million.
However, the platform's striking resemblance to Oriental Selection has sparked debates about originality versus imitation. While Xueersi openly acknowledges learning from successful predecessors, critics argue that mere replication without innovation may limit long-term competitiveness.
The Evolving Competitive Landscape
Xueersi's entry intensifies competition in the education-to-commerce transition space. Though currently dwarfed by Oriental Selection's influence, Xueersi has gained traction during its rival's PR challenges, proving the market remains dynamic and open to new players.
Obstacles and Opportunities
The transition presents both hurdles and potential for education companies. Key challenges include:
Operational Inexperience: Lacking e-commerce and supply chain expertise that differs fundamentally from educational services.
Audience Limitations: Difficulty expanding beyond their traditional customer base.
Market Saturation: Increasing competition as more education firms enter live commerce.
Conversely, inherent advantages include:
Educational Expertise: Highly qualified teaching staff capable of developing unique knowledge-driven sales approaches.
Brand Recognition: Established reputation that can accelerate audience acquisition.
Policy Alignment: Government support for education sector transformation into new business models.
The Path Forward
Differentiation will prove critical in this crowded market. Rather than simply replicating existing models, education companies must leverage their unique strengths to develop specialized content and services. Success will likely come to those who can identify and dominate specific niches within the broader live commerce ecosystem.
While Xueersi's long-term prospects remain uncertain, the education sector's transformation journey will undoubtedly present both formidable challenges and significant opportunities. The ultimate winners will be those who can most effectively adapt to this new commercial reality.