Net recruits
China's online recruiting sector could grow by leaps and bounds if the
economy keeps steady. In 2005, the market was worth 800 million yuan (US$101
million), and is expected to quadruple to 4.6 billion yuan (US$575 million) by
2010, says iResearch. It estimates online recruiters will jump from 1.1 million
in 2005 to 4.81 million by 2010.
To tap this market, leader 51Job.com raised US$73.5 million in an initial
public offering on the Nasdaq in September 2004. Since then, it has relied on
advertising from a hard-copy weekly magazine for much of its revenue.
This mix of old and new recruiting methods is a good way to corner the market
for the future, says Hou Tao, director of research at iResearch. "The core of
51job's success is integration of offline media resources," he says. "The
earlier establishment of this enterprise is an advantage."
ChinaHR.com, China's second largest online recruitment website, got its boost
through funding from Monster Worldwide Inc in early 2005. The global recruitment
site paid US$50 million for a 40 per cent stake and the possibility of majority
ownership is within three years or in the event of an IPO.
Zhaopin, meanwhile, will be using its US$20 million to continue expansion
into second-tier cities. In places such as Chongqing and Chengdu, Liu notes,
Internet use is not as prevalent as big cities, so Zhaopin is placing jobs in
high-circulation newspapers.
The company is also working toward a unique user experience. They've started
working on in-depth interviews of potential employers so recruits can get a
sense of where they might be working. "We're giving users new product offerings
and a better experience," Liu says.
Zhaopin is targeting up-and-coming university graduates. More than 90 per
cent of its users have at least a two-year college degree, Liu says.
It's also targeting companies desperately seeking talent in China.
One recruiter, Lu Kaiyu of Agilent Chengdu Instrument Division, says his firm
found 13 employees through Zhaopin. He writes in an email that he likes the site
because it has "countrywide coverage and well recognized talents in Chinait can
last longer than newspapers, and tends to be more dynamic."
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