Under the dual pressures of slowing growth in the government-end (G-end) market and insufficient penetration in the consumer-end (C-end) market, Chinese educational publishing houses face significant development challenges. Expanding the C-end market has become a key pathway for overcoming growth bottlenecks and achieving business transformation. Focusing on state-owned educational publishers at the K12 level, this paper systematically analyzes core characteristics of existing business models, identifies major challenges in C-end market expansion, and examines the underlying industrial and institutional drivers. The study finds that while policy protections have long secured stable textbook publishing revenue, they have also produced rigid market operating mechanisms and weak competitive market awareness. Four major challenges hinder C-end market development. First, a structural misalignment of user cognition exists: parents strongly associate educational publishers with statutory textbook suppliers yet prefer private brands for supplementary materials. Second, digital product and service systems lag behind, with most offerings remaining at the stage of basic content digitization without intelligent interaction or personalization. Third, publishers lack data insight and operational capabilities, with no direct C-end user access channels, no systematic data collection mechanisms, and few professional data analysis teams. Fourth, market operating mechanisms remain rigid, as performance systems prioritize public welfare and circulation volume while lacking C-end operational metrics and incentives. Drawing on national policy guidance for the in-depth integration of publishing, this paper proposes a four-dimensional reconstruction strategy. Identity reconstruction entails transforming from textbook supplier to educational service operator through tiered product matrices and IP-derived content. Channel reconstruction requires shifting from platform dependence to a self-built omni-channel ecosystem, with self-operated platforms—including the PEP Smart Learning Platform (over 80 million users) and the Subject Education Network (over 63 million registered users)—complemented by immersive educational scenarios and cross-business coordination. Value reconstruction converts policy authority into consumer-trusted brand assets through cross-platform content dissemination, membership service systems, and public welfare initiatives. Technology reconstruction advances from standardized supply to an intelligent ecosystem through AI integration, a data–content–scenario–user chain, and data productization and assetization. These four dimensions are mutually reinforcing. Identity reconstruction defines market positioning, channel reconstruction provides user access pathways, value reconstruction builds brand trust, and technology reconstruction provides underlying capability support. Together they form an integrated framework for educational publishers to achieve a structural transformation from textbook suppliers to educational service ecosystem operators. Future research may explore four directions: advanced applications of AIGC in content production and personalized services; innovation in C-end market monetization models and scale-effect generation mechanisms; cross-industry collaboration and ecosystem co-construction; and the development of frameworks for data asset ownership, data security, and privacy protection.