Into also VC, lose also VC?

Absrtact: A Zhaopin personnel earthquake, once again let the network recruitment industry deep buried problem surface. 10 years, for the network recruitment industry is destined to be a tragedy of the internet. After the influx of capital, advertising campaigns, price competition and other tricks of the turns

A Zhaopin personnel earthquake, once again let the network recruitment industry deep buried problems surface.

10 years, for the network recruitment industry is destined to be a tragedy of the internet. After the influx of capital, advertising, price competition and other tricks of the bombing, although let worry, Zhaopin, Chinahr grabbed the top three of the industry's throne, but the move did not usher in high-speed growth opportunities for them, instead of pushing themselves into another embarrassing situation.

The same profit model, the single profit path, the whole industry has been abandoned by the wind of the status of the network recruitment business prospects bleak.

Into also VC, lose also VC?

In fact, the network recruitment industry, VC is definitely an unavoidable powerful push hand.

Founded in 1997, Zhaopin, the first financial daily statistics found that from 1999 to 2008, in more than 10 years of the total number of five rounds of financing, totaling 148 million U.S. dollars. Among them, Australia's largest recruitment website seek together with Macquarie Investment Bank to Zhaopin injection of $130 million.

Also founded in 1997, the situation is similar to the Chinahr, 1999 today's capital President Xu in the name of a personal injection Chinahr, after 2005 years monster to 125 million U.S. dollars in the valuation took away the Chinahr 40% of the equity, the next year to buy 5% equity.

An unnamed industry insider told reporters, VC large amount of capital injection into the network recruitment enterprises early growth of the hands. But the patience of VCs to quit will not last much longer. The industry insiders bluntly, the way out of the market or sell shares to third parties. Therefore, after the listing of worry, the network recruitment industry began to appear subtle changes.

Due to be worry first step, Zhaopin and Chinahr thus into the embarrassing situation. "Because they do not have different characteristics with the former, there is no other selling point of listing, can only be forced to continue to deadlock, and see the exit of the hopeless venture began to withdraw capital." A person familiar with the situation of the two industries told reporters.

The reporter yesterday to zhaopin former investor Lenovo Investment and Techventures to confirm, two indeed already in July 2008 Zhaopin launched the fifth round of financing when its shares sold to seek, successful exit.

And Chinahr's situation is even worse, in Monster and signed 3 years to help its completion of the IPO promises can not be cashed, monster formal acquisition Chinahr remaining 55% shares, become its wholly-owned companies, Xu to hundreds of times times the return of the proud achievement exit.

"Now in the network recruitment industry, basically it is difficult to see VC figure." Li Jiaqing, managing director of Lenovo Investment, told reporters.

Homogenization of profit model

The three big online recruiting giants after the venture's divestment have all become wholly foreign-owned companies, worry's biggest shareholder is recruit, Japan's largest online recruiting company, and the Australian network is currently holding a 56.1% per cent stake in Zhaopin.

"Foreign investors will not wait for the enterprise to continue to lose money, the company's profit requirements further aggravate the operating pressure of enterprises, and accelerate the vicious competition in the industry situation." "As companies scramble for market share quickly and aggressively, they are bound to create loopholes in managing operations," the source said. ”

2009 became the most turbulent year for the three major recruiting sites. At the beginning of the year, Chinahr's original CEO Jianguo announced his departure, and in the middle of that period, Zhaopin's former CEO, Liu, was replaced by Edward-Rowe, the executive vice president of the Greater China region, and at the end of Monster the original CFO worry announced his departure

And the three major network recruitment companies operating mode homogeneity of the phenomenon has been accelerated catalysis. A peer in the online recruiting industry bluntly told reporters that the three giants in the market, industry, regional positioning and so there are too many overlapping or similar places, homogeneity of vicious competition let each other vitality big injury.

According to the industry analysis, online recruitment site's profit path is relatively single, that is, the individual users to send resumes free of charge, but to publish recruitment information enterprises. Because of the same profit model, homogenization competition is serious. As long as one company cuts or expands its sales team, the other two will quickly follow.

A small and medium-sized Enterprise Human resources director told reporters: "Now the company to check an online resume of the price has been from the original 50 yuan/share, to 10 yuan/about, and sometimes even get a lower price." ”

At the same time, the network recruitment enterprise's Bo out bit also gave the false information opportunity. There are a number of recruitment sites in order to attract more business users, the lack of necessary information to release the regulatory mechanism, allowing the recruitment of enterprises to publish some outdated information, spam and even false information. What is more, information dissemination as a platform for advertising, to exaggerate the actual situation of enterprises to attract people.

At the same time, network recruitment companies compete through large-scale advertising to stabilize and expand the market, data show that from 2004 to 2009, the domestic recruitment site advertising amount of up to 1 billion yuan, which undoubtedly makes the network recruitment business profits worse.

Branch Rui International CEO Gaoyong told reporters that the current network recruitment big hit price war without any significance, optimize the channel, take the respective specialization market development path is kingly.

May 7 This year, worry released the first quarter of the audit results showed that the first quarter of 2010 worry operating income reached 254.3 million yuan, the chain growth of 12.5%, the year-on-year growth of 42.7%. In 2007, Chinahr lost 143 million Yuan, 2008-year loss amounted to 175 million yuan, Zhaopin 2008-year loss of 170 million yuan, 2009 to 92.8 million yuan, however, Zhaopin said earlier, the fourth quarter of 2009 has been profitable, the first quarter of this year continued to profit.

"2009-2010 China Network Recruitment Industry Development Report" published by the consultation, said that the 2010 China Network recruitment market will be more than 1.5 billion yuan, China's network recruitment market long-term development trend optimistic.