Into Chinahr's past and present life

Absrtact: Near the end of the year, some companies are stealing music, calculating the harvest of 2012, some companies are dejected, on the way forward, such as: Recently, the world's largest recruitment site giant beast (Monster) seeks to sell its wholly-owned holding subsidiary Chinahr of the Elimination

Near the end of the year, some companies are stealing music, calculating a 2012 harvest, some companies are dejected, wandering on the way forward, for example: Recently, the world's largest recruitment site giant beast (Monster) seeking to sell its wholly-owned subsidiary Chinahr News in the online recruitment industry caused a stir, The Chinahr of where to go has also aroused great concern. So why is Chinahr die premature and abandoned? Let's walk into Chinahr's past and present life and uncover the business apocalypse. "Chinahr staff asked to be laid off"

A name that should be remembered

Founder-Zhang Jiexian: An early Chinese internet entrepreneur. Graduated from the English Department of Sichuan University, started business in 1995 and created Chinahr in 1997. 2004 Fade out, engaged in Internet angel Investment, create local life information website "Old guest Net". 2010 returned to the recruitment industry, created "818 work Network", and acquired the employer brand and campus recruiting enterprises to recruit technology. October 2011, launched the "full-time recruitment network."

Early Investor-Xu: President of today's capital. 1998 joined the Baring, responsible for investment activities in mainland China, 1999 investment Chinahr, and as chairman of the company. 2005 left the Baring, self-created today's capital group. On the Chinahr project, the cash return of $121 million and the capital gain of 41 million dollars, with 68 million dollars of capital, retreated from Chinahr.

The past and this life

1. Start-up period

In 1997, Chinahr turned out to have only 5 employees. 1999, founder Zhang Jiexian found Xu New, seeking 5 million yuan investment. Later, Xu invested $600,000 in his personal name to Chinahr and invested 6 million dollars again by 2000. Before 2004, founder Zhang Jiexian left Chinahr and began to enter the Yiu Weimin era, while Chinahr lagged behind worry.

2. Lunge Period

In the 2004, Chinahr from the first online recruiting company to the worry scale of 1/8. To this end, Xu began to look for new professional managers, and finally selected Jianguo-Huawei Human Resources former vice president. At the end of 2004, Jianguo a stake in Chinahr and became CEO, which introduced Huawei's "Wolf culture" to the company.

April 19, 2005, Chinahr announced a strategic cooperation agreement with the US monster (Giant Beast, the world's largest online recruiting provider), monster a $125 million valuation of Chinahr, and acquired 40% per cent of its stake in 50 million dollars to become a shareholder in Chinahr. The next year, again, to buy 5% of its stake in 19.9 million U.S. dollars, and then failed to make an IPO after three years of failure to gamble, in 2008 again to invest 174 million U.S. dollars to acquire the remaining 55% stake in the valuation of 316 million U.S. dollars. At this point, Chinahr became a wholly owned subsidiary of Monster, with a total investment of 243 million U.S. dollars.

At the end of 2005, the introduction of SME-oriented network recruitment services products-Talent recruitment treasure, business growth breakthrough 100%, become the fastest growing China recruitment site.

2006 became CCTV program "win in China" strategic partners and the only designated audition website. In the same year, create a Chinese job search brand-search Job 5.0.

On the evening of July 9, 2012, Chinahr the whole platform upgrade, introduced the monster technology of the parent company and gradually withdrew the Chinese version of the related products, which is the biggest change in the history of Chinahr since its inception in 1997.

3. Declining period

Monster's three quarterly earnings showed its third-quarter revenue fell 10.5% to 222 million dollars year-on-year, with a net loss of $194.2 million trillion. One of the main reasons for the three-quarter earnings was the loss of $233 million from Chinahr.

Orders from China in the third quarter of 2012 were $29.8 million trillion, earning $31.5 million trillion, a far cry from worry's $59.5 million trillion in the third quarter, according to Monster's chief financial officer.

From 2010 onwards, Chinahr market share began to decline, 2011 monthly coverage fell to sixth. Recently, the report of the release of Zhaopin shows that in the first half of 2012, the monthly coverage of the number of people and monthly visits have maintained a leading edge, while the worry flow is basically flat, Chinahr is a serious decline, the flow has been a fresh job search network and other sites beyond.

At the same time, the revenue has been flat and stagnant. According to Iris monitoring data, Chinahr 2008 revenue of 372 million yuan (official disclosure of data said more than 340 million yuan, a small difference), but in 2009 fell to 289 million yuan, and then in 2010 to 377 million yuan, and this is less than worry 40%. But in the same year, worry and Zhaopin in 2010, the market share of 32%, 24.7%, up from 09 4.3, 7.7%, but Chinahr in 2010 occupy the network recruitment market share of 15.6%, compared to 09 1.3%.

Iii. revelation

In the eyes of the giant beast, how Chinahr from the once sweet meat to become the burden of the present, and the embarrassment of the end of the disaster? The capital Laboratory, Revelation, argues that the decline of Chinahr has gone through the trilogy:

The first step, a hidden hidden danger of the seeds of gambling, to plant a complete incorporation of foreign investment bitter fruit;

The second step, bitter fruit difficult to swallow-is wholly-owned acquisition, and met with new acclimatized;

The third step, with other established competitors and new recruitment sites, the market position has been declining.

Specifically, there are at least several reasons for this:

1. The model of profit is homogeneous and difficult to deus. Under the single profit model, the development of more than 10 years, is still in the "high investment, high growth, low investment, low growth" of the initial stage, it is difficult to deus.

2. Into the Giants, abnormal development. This is the offspring of gambling, but also makes the giant beast despise this bastard. In addition, the parent company is also at the stage of cash-strapped, Chinahr inevitably become the first choice for abandoned.

3. Blindly introduce, do not seek innovation. By the strong support of the parent company, ignoring the local user experience, blindly introducing, not seeking innovation. This unknowingly led to the loss of users, but also lost the morale of the elite.

4. The management dilemma brought by the acclimatized. Founder Zhang Jiexian later Opt-out, since this Chinahr lost the founder gene, and professional managers under the management of foreign-funded enterprises are not acclimatized to the old problem.

5. Poor promotion and declining influence. Recruiting websites are used to promoting strong and expanding markets through mass advertising. After the acquisition of Chinahr in the domestic advertising campaign to cut sharply, so that chinahr in the domestic influence of the decline.

6. The impact of social recruitment patterns. With the rise of social networks, recruitment sites that incorporate social elements, such as the street network, the virtuous net, the job hunting network, the Jingwei network, and so on, have a strong impact on the traditional recruiting websites. At the same time, recruitment polymerization platform hundred nets, with accurate search for the positioning of the cool network, the SaaS model positioning of the North Sen is to make Chinahr's survival worse.

On the whole, the decline of Chinahr is a classic epitome of the online recruiting industry: tasting the bitter fruit of the gambling clause when introducing capital, experiencing the lessons of foreign monks not necessarily reading well, and witnessing the impact of new business models on traditional models.