Why Retailers Are Turning to EdTech

Contents:

• How Ozon Transformed Its Interest in EdTech
• EdTech for Retail: Following a Trend, Trying to Make Money, or a Way to Solve Staffing Problems?
• What Problems Are Retail Educational Platforms Solving Now?

How Ozon Transformed Its Interest in EdTech

Ozon was one of the first Russian retailers to begin developing EdTech. The company's experience demonstrates that the implementation of educational technologies can be a complex process, and some decisions made may prove unsuccessful. Nevertheless, Ozon continues to seek new approaches and solutions in the field of education, striving to improve the accessibility and quality of educational resources for users.

In 2019, Ozon launched its first educational initiatives - the Ozon Masters program and Ozon Academy courses for children. Subsequently, the company expanded its offerings, adding Ozon New Skills courses for adults and the Ozon Go development school. The retailer has made a significant portion of its programs free, guaranteeing access to training for students from across the country. Ozon Education's instructors include both company experts and specialists from leading Russian universities, including Moscow Institute of Physics and Technology, Higher School of Economics, and others. These educational projects are aimed at developing the skills and knowledge necessary for a successful career in today's environment.

In August 2021, the project team announced its closure, emphasizing that this decision came as a surprise. The company noted that children's education from the Academy may take on a new format in the future.

At the time of preparing this material The project's official website is not functioning, and information about it is available exclusively on social media.

The Ozon New Skills School, which focuses on training relevant IT professions, also faced a similar fate.

Ozon's website currently offers only one educational offering—E-commerce Online School, designed for entrepreneurs. This course provides the knowledge and skills necessary for successfully running an e-commerce business.

Ozon representatives did not disclose the reasons for the closure of their EdTech division in a conversation with Skillbox Media. However, the company clarified that they will now focus educational projects on technologies that are most relevant and in demand within the organization. This change underscores Ozon's strategic approach to developing education in line with current market needs.

The Ozon Go School has been renamed Route 256 and offers training in four development areas: QA, Frontend, Go, and C#. The program also develops the Ozon Masters data analysis program, which is part of Route 256. The program includes two tracks: a theoretical track focused on programming, and a practical track focused on solving real-world problems. Graduates with the best results have the opportunity to find employment at Ozon Tech.

Ozon Tech HR Director Anastasia Kuchai reports that the Ozon Academy program is still operating, but is now available exclusively to children of company employees. Participation in the program is completely free. Ozon Academy offers unique opportunities for training and development, supporting employees and their families.

EdTech for Retail: Following a Trend, Trying to Make Money, or Solving HR Problems?

According to a joint study by TalentTech, Netology, and EdMarket, corporate projects will account for 6% of the global education market by 2030. The total market size is projected to reach $10 trillion. This demonstrates a significant increase in interest in corporate training and its importance in the education system.

User educational needs have changed dramatically over the past 10-20 years. Modern learning demands speed, practicality, and convenience. Companies, seeking to solve a variety of problems using educational technologies (EdTech), are focusing on attracting, adapting, activating, developing, retaining, and returning users. This is giving rise to new concepts such as lifelong learning, microlearning, and edutainment. In various industries, training is becoming a crucial competitive advantage. This is according to Nikita Tarutin, Head of the Training Product at BCS World of Investments, who emphasizes the retail industry's growing interest in EdTech.

According to Netology, the online education market in Russia grew by 30-35% in 2020, reaching a total value of 60 billion rubles. Experts predict that this market could grow by another 20-25% in 2021. This growth is driven by growing interest in distance learning programs and the increasing number of platforms offering courses on various topics. Online education is becoming increasingly popular among various population groups, opening up new opportunities for the development of the country's education sector.

The study's authors emphasize that the emergence of new players in Russian EdTech became a significant trend in the second half of 2018. These companies actively compete for audience attention, partly copying the successful business models of established market participants and partly exploring new, under-served niches.

What tasks do educational retail platforms solve now?

• They train personnel for companies (X5 Group projects) or educate partners for more effective interaction (Ozon).
• They increase brand loyalty and attract the attention of potential partners (Metro, VkusVill).
• They satisfy customers' needs for hobbies and entertainment (Metro, VkusVill). According to TalentTech, just over half of Russians (55%) choose additional education for self-development and pleasure, rather than for career advancement. Thus, online learning successfully competes with other forms of leisure.
• They are laying the groundwork or testing the waters for larger-scale educational experiments (Ozon, X5 Group).

Educational projects in the retail sector represent a strategic step in the long term. Their impact will be noticeable when trained specialists begin to bring new business value and competitive advantages to companies. Personnel training and development in retail are becoming critical success factors, facilitating adaptation to market changes and improving business efficiency. Investments in educational programs will help build a strong team capable of making informed decisions and implementing innovations, which will ultimately lead to increased competitiveness and sustainability of the company.

In the next 10-15 years, traditional diplomas and resumes will lose their relevance, while employers will begin to focus on the real skills of candidates. According to Andrey Mityukov, Managing Partner of the IT holding TalentTech, everyone will have their own digital footprint and portfolio, as well as an understanding of the competencies in demand in the labor market. This means that for successful employment, it's important not only to obtain an education but also to actively develop and demonstrate your digital skills.

Online education is the simplest, fastest, and most effective way to gain new skills and adapt to a rapidly changing world. Mityukov emphasizes the importance of this approach in today's environment, where traditional teaching methods may not keep up with the demands of the times. Choosing online education allows you to easily and conveniently acquire new knowledge and skills, which is especially relevant in a rapidly changing labor market.

If you're interested in EdTech, there are numerous resources available to help you deepen your knowledge. First and foremost, it's worth paying attention to research and reports on trends in educational technology, regularly published by leading analytics companies. These documents provide up-to-date information on the EdTech market, new tools, and teaching methods.

We also recommend exploring blogs and articles from EdTech experts, where you can find practical tips on integrating technology into the educational process. Books on pedagogy and the use of technology in education will also be useful, as they offer a theoretical foundation and examples of successful practices. Don't forget about webinars and online courses, which often cover current EdTech topics and can offer new perspectives. Subscribing to newsletters and attending relevant conferences will help you stay up-to-date on the latest developments and changes in this rapidly evolving field. EdTech in Russia is attracting the attention of not only retailers but also IT companies and banks, who are eager to train people in relevant skills and specialties. Meanwhile, in China, EdTech startups are facing serious difficulties due to government restrictions, resulting in billions of dollars in losses for the industry. For more detailed information and the latest news in the field of education and technology, subscribe to our Telegram channel "EdTech on the shelves."