QuantaSing Group Ltd. QSG, one of the largest providers of online education for adults in China focusing on both the learning and personal interest markets, is in growth mode, gearing up to expand internationally and into new markets.
The company has a strong reputation in China thanks to its use of upcoming and cutting-edge technology, including livestreaming and artificial intelligence, to provide seniors with easy-to-understand, affordable and accessible online courses. It's capitalizing on the aging population in China, which is growing at such rates the World Bank designated it a "super-aged society." Revenue and subscribers for the company were up double-digits in the most recent quarter, and QuantaSing wants to replicate that success in the U.S. It’s a big market to go after – as of 2022, there were 58 million Americans aged 65 and older. By 2050, that's projected to grow to 82 million, a 47% increase.
Expanding Its Global Footprint Into New Markets
To that end, QuantaSing has been busy in the States, spending two weeks traversing the country from New York to San Diego, meeting with investors and key stakeholders to tell its story, plot its expansion and set the groundwork to forge new partnerships. The meetings have proven fruitful with QuantaSing reporting it will announce further developments in the coming weeks and months.
As part of its vision for the future, QuantaSing is not just targeting seniors with its global expansion plans. It's also banking on Kelly's Education's success. QuantaSing bought the Hong Kong-based online language education platform last fall, giving it a presence in the global online education market and the language learning sector. Kelly's Education targets kids ages 3 to 15, a new demographic for QuantaSing.
As part of the deal, QuantaSing launched Hong Kong Online Education (HKOE), which offers high-quality online English education for children with a sharp focus on delivering value. HKOE adheres firmly to the belief that top-tier education should be within reach for a broader audience of children, not just a privileged few. By implementing a reasonable pricing strategy, the company says it can reach a wider age group, broaden its course offerings and diversify its revenue.
"We are excited to integrate Kelly's Education and the new brand HKOE into our ecosystem. Their strong business model and seasoned team lays a solid foundation for our global market entry," Peng Li, Chairman and Chief Executive Officer of QuantaSing, said at the time. "We plan to broaden our course offerings, including Chinese language learning, and diversify our revenue streams by appealing to a wider age group."
Networking And Building Relationships Stateside
To build awareness in the U.S., Kelly's Education CEO Ken Chau joined QuantaSing at the ASU + GSV Summit in San Diego, an annual conference bringing together the great minds from the pre-K to the gray education market and also contributing to the conversation around online learning, adult education and AI. Chau was part of a panel discussion, sharing his thoughts and insights on creating "Responsible AI for Kids." Kelly's Education uses AI to break down barriers, reduce stigma, develop confidence and enable children and young adults to live richer, more meaningful lives. The conference provided another opportunity for QuantaSing and Kelly's Education executives to make contacts with industry players and investors.
The company had a lot to share with the panel attendees. For starters Kelly's Education recently inked two collaboration deals with Disney World of English and National Geographic Learning, aiming to provide children with a higher quality teaching environment and learning materials, further enhancing their learning outcomes and striving to build Kelly's Education as the No.1 children's English learning platform in Hong Kong.
What's more, the unit is gearing up to announce its first physical school in May. The school will combine online and traditional learning methods, serving as an interactive, innovative learning center offering various educational resources and high-quality teaching services, QuantaSing reports. The idea is to give students a more in-depth and engaging way to learn via interactive courses and guidance from teachers. Coinciding with the launch of the school is QuantaSing's move to open its first office in Hong Kong in early-summer. It marks the company's first presence outside of Mainland China and commences the company's new chapter of growing internationally.
From buying Kelly's Education to networking in the U.S., QuantaSing is getting serious about expanding its business beyond China's borders. Its soon-to-be-opened office in Hong Kong is expected to be a springboard for more to come. With the world getting older and students craving a new way of learning, QuantaSing is positioning itself to capitalize on that growth in its home country and beyond.
Featured photo by Arthur Lambillotte on Unsplash.
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