Giant Beast Dumping goods

Abstract: The buyer has not yet found, will be included in the sale of CHINAHR assets, the giant Beast (MONSTER,NYSE:MWW) of the heart of the dumping can be seen. The US online recruitment giant behemoth announced in its 2012 quarterly bulletin last November that it would seek to sell its previously financed

Have not yet found a buyer, will Chinahr listed as "For sale assets", the Giant Beast (MONSTER,NYSE:MWW) of the heart of the dumping can be seen.

The US online recruiting giant, the giant beast, announced in its 2012 quarterly bulletin last November that it would seek to sell its Chinese talent network, which it had previously spent more than 200 million dollars, and set the deadline for completion of the deal to "end of the fiscal year".

January 15, there is unconfirmed rumors that the intention of the party to the Chinahr bid has been low to 10 million U.S. dollars.

"The deterioration of the CHINAHR has its own strategic and managerial factors, as well as the impact of traditional online recruitment on social recruitment." "January 16, a veteran of the domestic network recruitment industry told reporters that the giant beast in the global market by social networking site LinkedIn's impact has been very clear, and China's two major recruitment sites 51job and the Smart Alliance also face the same challenges.

Internet companies, including Yahoo, Google, Amazon and ebay, have been in China, and the giant beast has failed China, adding to the Chinese failure of the internet giant.

Giant Beast Dumping goods

"It was a trap for the beast to enter into the gambling agreement when the Chinahr was invested." January 16, the above network recruitment industry veteran interviewed that it is because of the giant beast commitment Chinahr such as the IPO is not successful, it will be wholly-owned acquisitions, Chinahr before the management to dare to start crazy advertising promotion, resulting in the company's losses.

The behemoth's stake in the Chinahr was back in April 2005, when the deal was spent 50 million dollars to buy Chinahr 40%, and the behemoth would complete Chinahr's IPO within three years, and if the IPO failed, the behemoth was obligated to become its controlling shareholder.

The giant beast was bullish, with a stock price of $30 trillion, accounting for about 50% of the U.S. online job fair and an ambitious internationalization. But in China, the country's largest population, the giant beast's investment in Chinahr and the betting agreement, for a while, have allowed several major recruiting websites to join the frantic advertising campaign. Under the impetus of venture capital, Chinahr, Zhaopin and so on are immersed in the user enclosure regardless of cost.

Chinahr finally failed to make a successful IPO, the giant beast had to buy Chinahr 55.6% shares on October 8, 2008, plus its 2006 acquisition of about 5% shares, so far, the giant beast has wholly acquired Chinahr. In Chinahr completely turned into a foreign company in the process, including founder Zhang Jiexian, have a certain share of professional managers Jianguo and so on exit.

"Chinahr not only has no founder gene, but it is difficult for the professional managers appointed by the behemoth to understand the specificity of the Chinese market." "The head of a talent management software company said to reporters, this particularity has many manifests, for instance Chinese enterprise's HR department wants to have more resumes for it to choose," Recruit 3 person, hoped that can have at least 100 resumes to provide to come over, but abroad is wants as far as possible to help it to sift out the real suitable, recruit 3 person, I just want you to provide 10 resumes.

In the face of this special demand, some online recruiting sites have had to provide some dine resumes, it is understood. "The professional managers of the giant Beast advocate American management experience." "The network recruiters mentioned above believe that the lack of founder and professional managers familiar with the Chinese market, Chinahr lost the wolf, unable to obtain positive cash flow, the recruitment market in China gradually marginalized."

In this case, the giant beast itself is facing the embarrassment of "backyard". In its earnings, the behemoth admits that its online recruiting market is so low that the market is highly competitive, and its rivals include both the same-line recruiting sites, classified advertising sites, traditional media recruiting suites, search engines, industry blogs, vertical websites, social networking sites, and so on. In particular, the rise of social networking sites such as LinkedIn is evident in the diversion effect of the behemoth.

LinkedIn's 2012 quarterly Bulletin, released in November last year, showed revenues of 252 million U.S. dollars, up 81% from a year earlier, and a net profit of $2.3 million trillion, with a loss of 1.6 million dollars over the same period. Against the beast, the three quarter of 2012, excluding the Chinahr has been classified as assets to be sold, its revenue of 221.7 million U.S. dollars, the year-on-year decline of 11%, net profit of 9.5 million U.S. dollars, a sharp decline of 52%. In the recent year, the behemoth's share price has fallen from $10.4 trillion at its highest point to its current $5.85 (January 15 closing), nearly halved.

Social impact

Chinahr in the Chinese market marginalization, in addition to its own management and strategic factors, but also with the network recruitment market model replacement is not unrelated. "The 85% resumes for the three network recruiters are three years old. "Everyone headhunting CEO Wang Yuhao to reporters, the traditional network recruitment push resume and sell advertising mode, cost-effective, and pulled down the Enterprise HR Department recruitment efficiency."

To recruit a qualified staff, many enterprises of HR staff to read a resume on average time in seconds for the unit, a day to see more than 1000 resumes, labor intensity is very big.

Insiders familiar with the online recruitment market said that, although the current 51job and Zhaopin growth is good, but the growth is mainly from the two or three-tier cities, the first-tier cities have been affected by a variety of new recruitment models.

Wang Yuhao said that the recruitment market in China is highly fragmented, with more than 100,000 service enterprises, both online and offline, the size of the offline market is 12 billion-14 billion yuan, and the scale of the online market is more than 4 billion yuan.

Although in the current online recruiting market, 51job and Zhaopin occupy a relatively large proportion, but the recruitment needs of Chinese companies are not well met. "90% of the CV went to 10% of the big companies, and the remaining 90% small and medium-sized enterprises are difficult to recruit people." "Wang Yuhao that Chinahr's sale is a symptom of the traditional online recruiting model that will allow social recruitment in the future."

In the September 2012, Wang Yuhao created by the search for a corporate reward recruitment method, through the iOS and Android platform app Software, the company issued a reward recruitment, encourage users to recommend eligible candidates, the successful adoption of the user will receive 70% of the reward, the other 30% as a platform for everyone headhunting.

Wang Yuhao revealed that at present, everyone headhunting has won the first round of venture capital, the development of more than 200 enterprise customers, successfully recommended users can get more than 1000 yuan reward (depending on the recommended position of the annual salary).

Search engine Enterprise Baidu also joined the war. People familiar with the matter said that when Baidu found 51job, Zhaopin and so on its website every year to invest 150 million yuan advertising, can get more than 2 billion yuan of conversion proceeds, also in January 2011 set up the recruitment of hundred jobs. In addition, the market, 58 city also in the seizure of regional, localized recruitment markets. "Traditional online recruiting sites can only recruit people from relatively low-end sources. The person in charge of the talent management software company mentioned above said that the recruitment of migrant workers, such as Foxconn, the market and intermediaries under the wire, is not willing to put their CV on the site.

However, the person believes that the social recruitment model can not be developed in China is still an unknown, "There are cultural differences, but also with the maturity level of the development of the professional market." In fact, because of the sample effect of Lindedin, there are many imitators in China, but for many years, none of them stand out.

"Not only in China, but also in Japan and South Korea. The head of the talent management software company said there were two diametrically opposed views on whether the LinkedIn model could be replicated in China by the many VC investors it contacted.