“There are so many products based on games for young kids. We wanted to make a change” said Tony Xie and Cathy Xu, co-founders of Jiliguala.
That was the inspiration that drove this Taiwanese couple to quit their jobs at Slide, a company that was owned by Google Inc., and venture into the e-learning market in China.
Jiliguala, launched in November 2014, is a free early education APP, designed for parents with kids between the ages of 0 to 6.
In just over a year, their Shanghai-based company has expanded from 4 to 17 employees, with the APP’s user base rocketing to 2 million and the founders raising 850,000 dollars in financing from Babytree and Zhenfund.
However, the road to success was paved with years of focused work and market research. The couple’s first product, Knoala, also an APP focused on early education, catered to the North Amer-ican market.
Knoala followed the game-themed trend that is dominant in that market, becoming one of the many similar products that consumers could choose from.
After having acquired valuable experience from that venture, the duo then decided to focus their energies on the Chinese mainland, a growing market with high and inflexible demand for early ed-ucation.
“When we were doing our first product—Knoala, we discussed with our investors, who thought that China has a growing market, and we wanted to do it in China as well. Early education has an in-flexible demand for Chinese parents. It is better to learn a language from an early age. We hope that there is such an environment for Chinese kids the moment when they are born. So we came to China," said Cathy Xu.
BOOMING MARKET
Consider this: according to the latest census report, China has around 130 million infants between the ages of 0 and 6, with over 16 million new children being born every year. Moreover, that figure is only expected to grow larger with the country altering its decades-old One-Child Policy.
In addition to that, Chinese families are increasingly spending more on education. A China Business News (CBN) report estimates that education expenses in 2015 accounted for 23% of the average household income, second only to the expenditure on food.
Moreover, a recent report by iResearch shows that nearly 50% of Chinese parents are opting for online schooling and educational APPs for their kids.
With such massive potential, it isn’t surprising that the market for education APPs in China has witnessed steady growth. According to report by Internet giant Sina, there were more than 70,000 educational APPs in China in November 2014, accounting for 10% of all available APPs.
Even among these, people tend to spend the most on APPs focused on early education.
INVOLVING PARENTS
Taking these factors into account, Cathy and Tony decided to focus on the Chinese mainland, while shifting away from the gaming-themed model of online education to a more inclusive and community-based model.
What that means is that apart from serving the need for education, Jiliguala also provides an online community where parents can share their stories and tips helping each other.
What that does is to create a pool of what they call “mother experts” who participate in creating content, further enriching the user experience.
The thinking behind that approach is to tackle the inherent limitations of gaming-themed educational products, which target children as their users.
To begin with, the gaming format makes it difficult to consistently hold the attention of young children, with their preferences changing quickly as they begin to grow older.
Moreover, some parents tend to be quick to adapt to newer products based on the needs of their children, while others tend to limit the amount of time that their children spend on electronic devices, particularly when it comes to playing games.
In addition to this, if parents aren’t involved as users, then it is more likely that they will not prefer to pay for a product since they would have little information about the contents and their benefit and will perceive the product as providing entertainment as opposed to education.
“Kids cannot learn without the help of parents, especially the ones from 0-6. So parents must participate in the process. For parents, how to help them? This is what was the key point. And there is a trend in China that there are more and more full- so there is a need, also a must for these mothers, to teach kids by themselves,” said Cathy Xu.
Going forward, Tony and Cathy are keen to leverage Jiliguala’s online community to organize off-line activities such as Halloween and Christmas celebrations, ensuring that people can get the most out of their experience.
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