Why are retailers choosing EdTech?

Contents:

• Transforming Ozon's Interest in EdTech
• Educational Technologies in Retail: Striving for Relevance, the Desire to Make a Profit, or Solving HR Challenges?
• Modern Educational Platforms in Retail: What Problems Do They Help to Overcome?

Several Russian companies in the retail sector, such as X5 Group, VkusVill and the Ozon marketplace, have begun developing and implementing their own platforms for remote training.

We study the educational goals of retail chains and the extent to which they achieve them.

• Which retailers have already implemented educational platforms, and what skills and knowledge do they offer?
• Ozon's path, filled with experiments and failures.
• Educational initiatives in the retail sector are aimed at solving many important problems. Firstly, they help improve the skills of employees, providing them with knowledge of new technologies and industry trends. This allows workers to be more competitive in the labor market and effectively cope with change.

  Secondly, such projects contribute to improving the quality of customer service. By training staff in communication and interaction skills, companies can create a more positive experience for customers, which, in turn, can lead to increased loyalty and repeat purchases.

  The third aspect is adaptation to new working conditions. Educational programs help retailers respond more quickly to changes in consumer preferences and the market environment, which is especially important in the context of rapid technological advances and shifts in consumer behavior.

  Furthermore, these projects can contribute to the development of corporate culture, strengthening team spirit and employee engagement. Within-company training creates a space for the exchange of knowledge and experience, which strengthens team cohesion.

  Finally, educational projects in retail can also play an important role in shaping a company's image. By investing in the training and development of their employees, organizations demonstrate their commitment to high standards and social responsibility, which can positively impact their reputation with customers and partners.

• EdTech in Retail: A Drive to Keep Up with Trends, a Pursuit of Profit, or an Opportunity to Cope with a Talent Shortage?

X5 Group has taken education seriously. In December 2020, the company announced the creation of a department of industrial data analysis in the retail sector at the Moscow Institute of Physics and Technology (MIPT).

The organization announced its intention to establish long-term relations with the university and plans to prepare annually 20 specialists from the Moscow Institute of Physics and Technology's School of Applied Mathematics and Computer Science. X5 has become a pioneer among grocery retailers by establishing its own department for systematic data management on-campus.

To enroll in the master's program, students must have knowledge of algorithmic programming languages, the fundamentals of mathematical analysis, mathematical statistics, applied linear algebra, the basic principles of machine learning, probability theory, random processes, and the theory and practice of relational databases.

What you can learn: Graduates will acquire skills in data analysis, enabling them to monitor market conditions, predict consumer demand, improve production processes, and develop promotional strategies. They will be able to present companies with comprehensive digital solutions.

X5 Group announced the start of a long-term partnership with the Higher School of Economics (HSE). As part of this collaboration, a new application program called "Innovations in Retail" was launched for students at HSE University and other universities. Ivan Melnik, Innovation Director at X5 Retail Group, emphasized: "We strive to improve the quality of education, taking into account current business needs and our expertise, as well as provide career opportunities for talented students." X5 Group openly acknowledges that it intends to strengthen its market position through educational initiatives.

In the summer of 2021, X5 Group initiated a recruitment process to create its EdTech ecosystem. The plan was to launch a platform that would unite internal and external marketplaces for educational solutions.

The vacancy was archived back in July. The retailer has not yet announced the official launch of the educational platform.

Transforming Ozon's Interest in EdTech

Ozon was one of the first Russian retailers to actively explore EdTech opportunities. The company's experience demonstrated that development in the educational field can be complex, and some choices will have to be considered unsuccessful.

In 2019, Ozon launched its first educational initiatives, including the Ozon Masters program and courses for children called Ozon Academy. The company subsequently expanded its offerings, adding two new areas: courses for adults called Ozon New Skills and a programming school called Ozon Go. The retailer also offered free training in some of these programs, making them available to students across the country. Ozon Education invited not only experts from within the company to teach, but also specialists from leading Russian universities, such as Moscow Institute of Physics and Technology and the Higher School of Economics, as well as other educational institutions.

However, in August 2021, the team announced the end of the project, emphasizing that this decision came as a real surprise. "Perhaps children's education will receive a new interpretation from the Academy," company representatives added.

At the time of writing this text, the official website of the project is still not functioning, and information about it is available exclusively on social media. networks.

Fate has not spared the Ozon New Skills school, which was founded to train specialists in the most relevant IT areas.

Currently, the Ozon platform offers only one educational program - E-commerce Online School, which is aimed at supporting entrepreneurs.

During a conversation with representatives of Skillbox Media, Ozon employees did not disclose the reasons for ceasing work in the EdTech field. The company noted that they focused their educational initiatives on the technologies that are most relevant to their business.

First of all, it is worth noting the changes in the Ozon Go school, which is now called Route 256. The curriculum covers four specializations in the field of development: QA, Frontend, Go and C#. In addition, the company is actively developing a data analysis program called Ozon Masters, which is part of Route 256. This program offers two tracks: one is focused on theory with an emphasis on programming, and the other on practical tasks. Graduates who demonstrate outstanding results have the opportunity to receive a job offer at Ozon Tech.

According to Anastasia Kuchai, HR Director at Ozon Tech, the Ozon Academy program continues to operate, but is now available exclusively to children of company employees. Participation is free of charge.

Educational Technologies in Retail: Striving for Relevance, the Desire to Make a Profit, or Solving HR Challenges?

According to a joint study conducted by TalentTech, Netology, and EdMarket, corporate projects will account for 6% of the global education market by 2030. The total volume of this market will be $10 trillion by that time.

"People's educational needs have changed significantly compared to what they were 10-20 years ago. The modern educational process requires speed, practical focus, and convenience. At the same time, companies are actively using educational technologies (EdTech) to solve a variety of problems: attracting, onboarding, activating, developing, retaining, and returning customers. This is giving rise to new concepts such as continuous learning, microlearning, educational entertainment, and others. Furthermore, in various fields, knowledge acquisition is beginning to be perceived as a competitive advantage," says Nikita Tarutin, Head of the Learning Product at BCS World of Investments, commenting on the retail industry's focus on EdTech.

According to information provided by Netology, the online education market in Russia grew by 30–35% in 2020. As a result, its total value reached 60 billion rubles. Experts predict further growth of 20–25% in 2021.

The study's authors emphasize that the Russian EdTech market is experiencing a clear trend of new players emerging, which began to emerge in the second half of 2018. "These companies are actively competing for user attention, partly by borrowing successful business models from more experienced market participants, as well as by exploring new, underserved niches," the researchers note.

Modern educational platforms in retail: what problems do they help overcome?

• They train specialists for organizations, such as X5 Group projects, and also train partners to improve interactions with them, as Ozon does.
• They increase brand loyalty and attract future partners (Metro, VkusVill).
• Companies such as Metro and VkusVill successfully meet customer demand for hobbies and entertainment. According to information from TalentTech, over 55% of Russians prefer to receive additional education not for career advancement, but for personal growth and enjoyment. This demonstrates that online learning is effectively competing with other forms of leisure.
• The foundation is being laid or the possibility of implementing larger educational initiatives is being explored (Ozon, X5 Group).

Currently, educational initiatives in retail represent, first and foremost, long-term investments. Real results will be seen when trained professionals begin to generate new business value for organizations and strengthen their competitive position.

"Over the next 10-15 years, traditional diplomas and resumes will lose their relevance, and employers will begin to evaluate candidates based on their skills," asserts Andrey Mityukov, Managing Partner of the IT holding TalentTech. He believes that each person will have their own digital footprint and portfolio, as well as an understanding of which skills are most in demand in the labor market.

"The simplest, fastest, and most effective method for mastering new skills and adapting to a rapidly changing world is online education," Mityukov concluded.

What other materials can be studied in EdTech?

In Russia, EdTech is attracting the attention of more than just retail companies. IT giants and financial institutions are also striving to train citizens in relevant skills and professions. Meanwhile, in China, edtech startups are facing serious challenges: new government regulations have resulted in multi-million dollar losses for the industry. You can learn more about these and other aspects in our Telegram channel "EdTech on the Shelves".