2014 China Online Recruitment Report (Brief Edition)

Transcription

1 2014 China Online Recruitment Report (Brief Edition)

2 Contents Environment 2 for the Development of China Online Recruitment Industry 3 Status Quo of China Online Recruitment Industry 4 Typical Models of China Online Recruitment Market 4 Trend Forecasts of China Online Recruitment Industry 5 2

3 Rising Internet Penetration as the Basis for Industry Growth Internet Population Hit 618 Mn, Up 9.5% YoY China Internet population totaled million in 2013, up 9.5% YoY. Internet penetration rose to 45.8% and is forecasted to top 60% by According to iresearch, mobile Internet users, and Internet users in lower-tier cities and rural areas will significantly boost the growth of total Internet population and penetration in the following a few years. China Internet Population and Penetration Rate , % 34.3% 38.3% 42.1% 45.8% 49.4% 53.6% 57.3% 61.1% 1, e 2015e 2016e 2017e Internet population (mn) % Penetration Source: CNNIC data is based on iresearch statistical forecasting model. 3

4 Mobile Internet Bred New Opportunities Mobile Internet Population Reached 500 Mn, Up 19.1% YoY China mobile Internet population amounted to 500 million in 2013, jumping by 19.1% YoY with penetration of 81.0%. The growth, being the fastest in the past three years, has powered China mobile Internet economy. iresearch believes that the boom of mobile Internet provides good opportunities and hardware support for recruitment agencies to improve services, optimize products and enhance user stickiness. China Mobile Internet Population and Penetration Rate , % 66.2% 69.3% 74.5% 81.0% 86.4% 87.1% 87.2% 87.6% e 2015e 2016e 2017e Mobile Internet users (mn) % Penetration 4

5 SMEs Gradually Became Major Employers Number of China SMEs Hit Mn in 2013 iresearch statistics show that the number of China SMEs totaled million in 2013, up 7.8% YoY. Since large enterprises are in stable growth stage with lower mobility of staff and richer resources of recruitment, they have more diversified channels of recruitment. By contrast, SMEs are experiencing rapid growth and generating numerous job openings. Higher mobility of talents, concern about cost performance of recruitment and higher requirements of recruitment efficiency made SMEs major employers in online recruitment market. 120 Number of SMEs in China % 8.8% 8.1% 7.8% 8.3% 7.8% 7.8% 7.5% e 2015e 2016e 2017e Number of SMEs (mn) % Growth Note: SME is defined in accordance with composite standards. Criteria for SMEs are established in the light of such indices as number of employees, sales volume, total assets, etc., in the Interim Provisions on the Standards of Small and Medium-sized Enterprises, jointly issued by the Ministry of Commerce, National Development and Reform Commission, Ministry of Finance and National Statistics Bureau, as well as characteristics of industries. Some individually and privately owned businesses above a certain size are also included. Source: Based on related data of State Administration for Industry & Commerce of P.R.C. and Bureau of Statistics of China, interviews with enterprises and experts, as well as iresearch statistical model and forecasts. 5

6 Contents Environment 2 for the Development of China Online Recruitment Industry 3 Status Quo of China Online Recruitment Industry 4 Typical Models of China Online Recruitment Market 4 Trend Forecasts of China Online Recruitment Industry 5 6

7 Online Recruitment Market Grew Stably China Online Recruitment Revenue Reached 3.08 Bn Yuan in 2013 According to iresearch statistics, China online recruitment revenue increased to 3.08 billion Yuan in 2013 at a growth rate of 15.2%. Despite robust growth of employer base, ARPU decreased substantially amidst fierce market competition, hence declining growth of total revenue. Nevertheless, accompanied by expanding employer and user base, ireseach predicts bright prospects of online recruitment market in the next a few years. First, improved service capabilities of comprehensive recruitment websites and business expansion in market segments will fuel the growth of online recruitment market. Second, innovative business models including mobile recruitment, social recruitment and vertical recruitment sites will be new growth engines for the sector. Third, low-end recruitment market will boom along with rising Internet penetration. 10 China Online Recruitment Revenue % 8.9% 41.3% 28.6% 22.4% 15.2% 19.8% 20.2% 19.0% 15.2% e 2015e 2016e 2017e Revenue (bn yuan) % Growth Source: Based on the financial results of listed companies, interviews with enterprises and experts, as well as iresearch statistical model and forecasts. 7

8 Expanding Employer Base and Declining ARPU Employers Recruiting Online in China Surged to 1.97 Mn in 2013 The number of employers recruiting online in China climbed to 1.97 million in 2013, soaring 21.6% YoY. According to iresearch, along with steadily rising Internet penetration, online employer base will keep expanding. In addition, recruitment needs from micro, small and medium-sized businesses will continue to increase. Moreover, the growth of Chinese economy will also exert direct influence on the recruitment needs of enterprises. Number of Employers Using Online Recruitment Services in China % 29.6% 27.6% 20.9% 21.6% 28.2% 16.3% 15.8% 14.0% e 2015e 2016e 2017e Online employers (mn) % Growth Source: Based on the data of State Administration for Industry & Commerce of P.R.C., financial results of listed companies, interviews with enterprises and experts, as well as iresearch statistical model and forecasts. 8

9 Online Job Hunters Increased Stably Online Job Hunters in China Exceeded 100 Mn in 2013 The number of online job hunters in China hit million in 2013, up 10.3% YoY. Growing Internet penetration further expanded online applicant base. Nevertheless, its growth will gradually decelerate and the figure is forecasted to reach million by Number of Online Job Hunters in China % 20.0% 11.5% 8.3% 10.3% 10.9% 10.0% 9.3% 8.7% e 2015e 2016e 2017e Online job hunters (mn) %Growth Source: Based on the data of State Administration for Industry & Commerce of P.R.C., financial results of listed companies, interviews with enterprises and experts, as well as iresearch statistical model and forecasts. 9

10 Share of Lowly Educated Job Applicants On the Rise Online Applicants Were Mainly Highly Educated Groups iresearch data revealed that the share of highly educated online job seekers dropped from 89.7% in 2009 to 85.8% in 2013 whereas that of lowly educated applicants increased considerably. As the Internet penetrates into lower-tier cities and rural areas, there are big opportunities among lowly educated and blue-collar population. Educational Qualifications of Online Job Seekers in China % 10.3% 9.9% 12.5% 14.6% 14.2% 80% 60% 40% 89.73% 90.11% 87.53% 85.43% 85.76% 20% 0% % High-end labor force % Low-end labor force Note: High-end labor force refer to job applicants with junior college and above degrees and low-end labor force refer to job applicants with senior high (secondary technical school) and lower qualifications. Source: 1. iusertracker. Home Office Edition. February Based on the long-term measurement of online behavior of 400 thousand home and office (excluding public Internet café) panelists. 2. Based on iresearch proprietary data, interviews with enterprises and experts, as well as iresearch statistical model and forecasts. 10

11 Contents Environment 2 for the Development of China Online Recruitment Industry 3 Status Quo of China Online Recruitment Industry 4 Typical Models of China Online Recruitment Market 4 Trend Forecasts of China Online Recruitment Industry 5 11

12 Comprehensive Online Recruitment Typical Models of China Online Recruitment Market Comprehensive Recruitment Sites (51job.com) As the first Chinese online recruitment company listed on the US stock market, 51job remained as the No.1 player in China online recruitment market. It provides a full line of services which mainly include headhunting, training, assessment, HR outsourcing, among others. iresearch data shows that online recruitment revenue made up 60.2% of 51job s total revenue in Q1 2012, which increased gradually to 66.6% in Q By contrast, the share of publication advertising revenue was on the decline mainly because market demand is shifting from print advertising service to online advertising service. iresearch believes that online recruitment market still has tremendous growth potential and meanwhile, other HR related services will facilitate online recruitment companies to turn into comprehensive HR service providers. 100% Revenue Structure of 51job Q Q % 27.3% 28.4% 29.5% 36.9% 28.3% 30.6% 31.6% 37.5% 60% 12.6% 6.1% 6.1% 3.2% 6.5% 2.7% 2.2% 1.2% 40% 60.2% 65.5% 64.4% 59.9% 65.2% 66.6% 66.2% 61.2% 20% 0% Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Online recruitment revenue Publication advertising revenue Other HR related revenue Source: Based on the financial results of enterprises, interviews with experts, and iresearch statistical model. 12 Comprehensive Recruitment Mobile Recruitment Social Recruitment Vertical Recruitment Classified Information

13 Comprehensive Online Recruitment Typical Models of China Online Recruitment Market Comprehensive Recruitment Sites (Zhaopin.com) Zhaopin.com (ZPIN.N) was listed on New York Stock Exchange on June 12, 2014, making it the second Chinese online recruitment company that went public in the U.S. According to the financial results of Zhaopin.com, the share of online recruitment revenue dropped to 81.4% in 2013 from 85.9% a year ago. At the same time, new business expansion has made good progress as the share of campus recruiting revenue and assessment service revenue both surged. Career assessment performed particularly well and was less affected by seasonal factors. Revenue Structure of Zhaopin Q Q % 80% 6.5% 4.2% 5.8% 3.6% 3.9% 4.7% 5.4% 5.3% 1.1% 2.6% 4.3% 2.8% 2.1% 4.3% 4.0% 4.4% 5.3% 9.2% 1.4% 12.3% 9.5% 6.5% 5.4% 14.6% 60% 40% 83.3% 90.4% 90.8% 79.8% 82.3% 84.8% 84.9% 74.9% 20% 0% Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Online recruitment revenue Campus recruitment revenue Career assessment revenue Other HR related revenue Source: Based on the financial results of enterprises, interviews with experts, and iresearch statistical model. 13 Comprehensive Recruitment Mobile Recruitment Social Recruitment Vertical Recruitment Classified Information

14 Mobile Recruitment Online Recruitment Companies Differed over Mobile Demand After 51job.com launched a mobile version of the site, recruitment companies also rolled out their respective apps one after another during 2013 and According to iresearch, mobile enjoys unique advantages over PC due to privacy, usage during fragmented time and mobile data. Nevertheless, mobile also has a natural disadvantage. That is, small screen size of mobile devices and the time difference in synchronizing mobile with PC jeopardized user experience. Moreover, the constraints of mobile devices make it difficult to shift display recruitment ads from PC to mobile. Therefore, iresearch believes that although mobile-based development is the wave of the future for online recruitment industry, different online recruitment companies have variant demand on mobile service. For comprehensive recruitment sites-privacy + usage during fragmented time Considering the unique display form of comprehensive recruitment sites, mobile app will provide more privacy to job hunters during work time and on certain occasions while facilitating them to search for job openings and submit resumes during fragmented time. For business social networking sites-data + stickiness User coverage and stickiness are core operating indices for business social networking sites. Mobile app enjoys a natural advantage in promoting social products and enhancing user stickiness. Therefore, user stickiness is the key demand of business social networking sites in mobile Internet era. For classified information sites-blue-collars Classified information sites may cover extensive blue-collar and low-end job applicants via mobile devices due to their specific characteristics and conditions. Meanwhile, mobile service is more suitable for such user groups in view of special cases of job application without resume or via telephone. 14 Comprehensive Recruitment Mobile Recruitment Social Recruitment Vertical Recruitment Classified Information

15 Business Social Networking Business Social Networking Challenged Traditional Online Recruitment Founded in December 2002 and launched in 2003, LinkedIn has over 85 million individual registered users and 500 corporate users covering hundreds of industries in more than 200 countries worldwide. Listed in the US stock market on May 20, 2011, LinkedIn creates a social service model that is efficient, secure and of business value through artistic way of advertising and serves as a good example for social recruitment. 100% 80% Revenue Structure of LinkedIn Q Q % 19.1% 19.7% 19.6% 20.2% 20.1% 20.3% 20.0% 60% 25.5% 27.7% 25.4% 27.4% 23.0% 23.5% 22.5% 25.0% 40% 20% 54.4% 53.3% 54.9% 53.0% 56.8% 56.4% 57.2% 55.0% 0% Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Talent solutions Marketing solutions Paid subscription Source: Financial results of enterprises. 15 Comprehensive Recruitment Mobile Recruitment Social Recruitment Vertical Recruitment Classified Information

16 Business Social Networking Opportunities and Challenges Coexist for Business Social Networking in China According to iresearch, social recruitment sites enjoy clear advantages in timeliness and targetedness. Moreover, social is an important trend for online recruitment market. Business social networking platform, positioned for social networking but not confined to job hunting, is also a platform for communication and cooperation among high-end groups. The combination of social with business attracts the attention of increasingly more business professionals. Nevertheless, social networking sites also meet with obstacles in China. On the one hand, constrained by Chinese traditional culture, social networking has not made a breakthrough in product model in China. On the other hand, social networking needs to refine the classification of user groups based on big data. For companies, the key is fast access to data and strengthened data analysis capabilities. As for industry landscape, a number of business social networking sites sprung up both at home and abroad. With business as the basis and social as the tool, a brand new social recruitment model was built. Typical examples include LinkedIn, dajie.com and tianji.com. In contrast, drawing on extensive user base and rich data, another type of business social networking came into being with social as basic platform and business as the module. The advantage of the former lies in professionalism in business while the strength of the latter is extensive user base. Meanwhile, social is becoming an important tool for other traditional websites which aim to boost innovation and growth potential via big data and social networking. Business Social Networking Market Landscape China Business Business Social Networking Social Overseas 16 Comprehensive Recruitment Mobile Recruitment Social Recruitment Vertical Recruitment Classified Information

17 Vertical Recruitment Vertical Recruitment Brought in Brand New Opportunities for Traditional Recruitment Companies Vertical recruitment site is an online recruitment model that provides specialized services in a certain segment of online recruitment market, including region segments, industry segments and market segments. As online recruitment sites grow into comprehensive HR service platforms, increasingly more demand for value-added and HR services of employers is bringing about new business opportunities for online recruitment companies. Meanwhile, how to serve clients in a professional and vertical manner becomes top priority of online recruitment companies. Against such backdrop, vertical recruitment sites are brought into spotlight and will center on value-added services other than recruitment. Therefore, traditional comprehensive recruitment sites and emerging startups both eyed the market. Industry Vertical Industry Vertical 高端垂直 High/Low-end Vertical Region Vertical 17 Comprehensive Recruitment Mobile Recruitment Social Recruitment Vertical Recruitment Classified Information

18 Classified Information Platform Classified Information Platforms Will Significantly Impact Recruitment Market Landscape Classified information platforms, represented by ganji.com and 58.com, are rapidly expanding online recruitment market share based on its extensive user base, flexible market strategy and clear market positioning. Ganji.com and 58.com successively promoted recruitment as top section on their sites. At present, information service platforms mainly target at low-end and blue-collar job applicants in recruitment market and their business model is mainly based on advertising and membership fees. iresearch believes that the core values of low-end recruitment market lie in the following. First, vast market space. Traditional recruitment sites mainly focus on middle to high-end users. Along with accelerated urbanization in China, numerous low-end job applicants also have tremendous demand for job hunting. Meanwhile, increasingly more economic entities including individually-owned businesses have heavy demand for recruitment. The match of supply and demand will give rise to a vaster online recruitment market. Second, differentiated needs of employers. Recruitment of low-end applicants show unique characteristics. Specifically, (1) mainly from labor-intensive industries; (2) some favor blue-collar and technical applicants; (3) exhibit clear seasonality; (4) weaken the role of resume. Third, needs of low-end job applicants better satisfied on mobile. Low-end users usually access the Internet via mobile devices. Considering the needs of employers and the way of contact, mobile will better meet the needs of low-end job applicants. High-end High-end Vertical Recruitment Comprehensive Recruitment Sites Middle-end Low-end Classified Information Platforms 18 Comprehensive Recruitment Mobile Recruitment Social Recruitment Vertical Recruitment Classified Information

19 Classified Information Platform Ganji.com: Shift of Strategic Focus to Low-end Recruitment Founded in 2005 and headquartered in Beijing, ganji.com currently sets up branch offices in Shanghai and Shenzhen and covers over 350 cities nation-wide. It offers comprehensive local lifestyle and business service information including job recruitment, properties for sale or rent, second-hand goods trading, vehicle selling and buying, pets, ticketing, education/training, city-wide activities and dating, among others. Ganji later partially shifted its business focus to online recruitment market and released 2012 Urban New Blue-collar Survival Report and 2013 New Blue-collar Salary Report to target at low-end job applicants. In February 2014, Ganji launched the first online recruitment festival in China in an attempt to build a preferred platform for changing jobs after the Spring Festival, which attracted more than 30 million job hunters. In addition, it rolled out its mobile recruitment app, Ganji Job Assistant, to further expand low-end recruitment market. According to iresearch, dominant sections of classified information platforms like real estate are encountering growth bottleneck and are significantly affected by the macro environment. Along with the boom of small, micro and privately owned businesses, employers have strong and growing demand for blue-collar, technical, and low-end job applicants. Therefore, it is wise of Ganji to partially shift its strategic focus to online recruitment. 19 Comprehensive Recruitment Mobile Recruitment Social Recruitment Vertical Recruitment Classified Information

20 Classified Information Platform 58.com: Info Service as Basis Founded in December 2005 in Beijing, 58.com was listed on New York Stock Exchange on Dec. 31, 2013, Beijing time. In June 2014, it entered into a strategic partnership with Tencent for in-depth cooperation in mobile Internet sector and other key product lines to jointly enhance product functionality and user experience. The site mainly offers a variety of lifestyle services covering properties for sale and rent, job recruitment, second-hand goods trading, yellow pages, pets, ticketing, travel, dating, catering, entertainment, and more. The major source of revenue for 58.com is membership and advertising fees. By paying for membership fee, merchants are entitled to basic service package, including merchant verification, setting up of online shop and the privilege to release information. The privilege gives merchants priority in releasing information, higher quota for the amount of information released, and assistance from client service team and online account management system. The business model of 58.com is more suitable for low to middle end job recruitment, SMEs in particular, and its profit model also suits current recruitment market. Besides, 58.com may further penetrate into online recruitment market for large enterprises through new recruitment products such as well-known enterprises and prime recruitment services while enhancing its attractiveness to middle-end talents. 58.com rapidly expands into a diversity of business segments by drawing on the traffic and data of its information service platform as well as large user base in a bid to build a more comprehensive lifestyle service platform based on information service. 20 Comprehensive Recruitment Mobile Recruitment Social Recruitment Vertical Recruitment Classified Information

21 Contents Environment 2 for the Development of China Online Recruitment Industry 3 Status Quo of China Online Recruitment Industry 4 Typical Models of China Online Recruitment Market 4 Trend Forecasts of China Online Recruitment Industry 5 21

22 Trend Forecasts of China Online Recruitment Industry Trend 1: HR market boasts huge potential, Internet penetration will keep rising Chinese HR service market has grown to a certain scale with tremendous potential. First, as Chinese economy is still in the stage of rapid development, the size and quality of labor force are constantly improving, which underpins the growth of Chinese HR service market. Second, along with robustly increasing job openings and needs for manpower, job stability of young applicants will drop, giving rise to more demand for job hunting and recruitment. Third, the huge demand of employers for skilled workers helps enhance their value in the HR market, which further extends the market to cover online recruitment, training, assessment and other offline HR service segments. Online recruitment market will keep growing. According to iresearch, the exploration of more value-added services will boost the core business of online recruitment, which will further attract employers and help build differentiated competiveness. In addition, HR outsourcing services represented by training and assessment are more easily and efficiently delivered via the Internet. SMEs will be more willing to accept lower cost while vast market and extensive user base will drive up the revenue of online recruitment companies. Trend 2: Online recruitment will further change traditional offline recruitment models Traditional offline recruitment models mainly include offline job fairs, recommendation from acquaintances, headhunting, and advertising on traditional media like newspapers and magazines. According to iresearch, the advancement of Internet technology will highlight the advantages of online recruitment, enhancing its coverage, timeliness and matching efficiency. Moreover, accompanied by constant innovation in the models of social recruitment, vertical recruitment and high-end recruitment, online recruitment will fully penetrate into traditional offline recruitment segments. Besides, as more blue-collar workers gain access to the Internet, online recruitment will cover more blue-collar population. Meanwhile, blue-collar market will become an important new market segment for online recruitment companies. 22

23 China Online Recruitment Report Definitions Concepts: Recruitment Services Refer to services offered to employers and job hunters by recruitment service operators during the process of recruitment and job hunting. It mainly includes online recruitment, newspaper & magazine recruitment, headhunting, HR outsourcing and job fair. Online Recruitment Refers to a recruitment model that helps employers and job hunters find potential employees and jobs based on the Internet and related technologies. Online Recruitment Services Refer to Internet platform and related technical assistance provided to employers and job hunters by recruitment sites during the process of recruitment and job hunting. It covers services targeted at employers and job hunters, such as release of job openings, download of resumes, customized recruitment, generation of resumes, search of job vacancies, salary query, among others. Online Recruitment Operators Refer to companies that own recruitment sites and provide online recruitment services. Online Recruitment Revenue Refers to the combined revenue of online recruitment operators generated by providing online recruitment services. It excludes the revenue from offline services of online recruitment sites such as newspaper, headhunting, training, job fairs, etc. 23

24 China Online Recruitment Report Methodology Data collection and analysis mainly adopt online survey method via iusersurvey, a market research platform specifically developed for online media user research, in conjunction with in-depth interviews with and research on related operators and channel agents. 1. Research Method In line with statistical theory and international practice, this research mainly adopted online survey method. Online survey was conducted in February, 2014 on iresearch s iclick research community (URL: A total of 5,635 questionnaires were collected and invalid questionnaires were excluded. After giving a weighting in accordance with gender, age and regional distribution of users of recruitment sites, we finally obtained a total of 3,986 valid questionnaires. 2. Sample Matching of Internet Users A weighting was given in accordance with gender, age and regional distribution of users of recruitment sites in iusertracker. 3. Representativeness and Limitation of Data The users participating in iresearch s user behavior survey do not represent all Internet users in China. As a result, the survey results do not fully represent the overall situation of Chinese Internet population. 24

25 China Online Recruitment Report Legal Notice The report is produced by iresearch Co., Ltd. All texts, figures and tables in this report are under the copyright protection of relative laws and regulations on intellectual property rights in the Peoples Republic of China. No organization or individual is allowed to use the information in this report for any business purpose without the written consent from iresearch. Some texts and data in this report are collected from public information and their copyrights are held by the original authors. No organization or individual is allowed to use the information in this report for any business purpose without written consent from original authors and iresearch. Data related to operators revenues and market forecasts are mainly obtained through interviews related to the industry, marketing survey, secondary sources and other research methods, some of which have not been directly confirmed by the related operators. Some data published in this report is based on sampling method and is therefore influenced by sample structure. Due to the limitation of research method, sample size and scope of data collection, part of the data may not precisely reflect real market situation. This report is for reference only and iresearch is not liable for the accuracy of the data in this report. Introduction to iresearch s Services: iresearch Consulting Group: Introduction to iresearch s Products: iresearch customer solutions: iresearch continuous data research products: iresearch customized research consulting services: iresearch views and reports: iresearch Institute training services: iresearch media conference services: iresearch Information Websites: iresearch.cn: iresearchad: iwebchoice: Contact: Beijing: Shanghai: Guangzhou:

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