Half of mobile Internet firms shut down within 18 months

By Zhang Rui
0 Comment(s)Print E-mail China.org.cn, April 29, 2015
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An Internet human talent recruitment agency website released a report at the Global Mobile Internet Conference (GMIC) 2015 in Beijing on Tuesday, saying nearly half of the mobile Internet start-up companies cannot survive more than a year and a half.

An Internet human talent recruitment agency website released a report at the Global Mobile Internet Conference (GMIC) 2015 in Beijing on Tuesday, saying nearly half of the mobile Internet start-up companies cannot survive more than a year and a half. [File photo] 

Bao Aile, co-founder and chief marketing officer of Lagou.com, gave the details about the current situation of human resources in China's mobile Internet industry in the "Mobile Internet Talent Report 2015."

According to the report, nearly 50 percent of new start-up mobile Internet companies cannot hold up for more than one and a half years. A number of developers and new companies are rushing into the mobile Internet industry. The capital and talents are the initial drives of such new companies.

Start-up companies need at least four research and development employees, one designer and one operating staffer with 1 - 3 years of work experience. An entrepreneur has to pay at least 46,100 yuan a month, the minimum total compensation in the industry, to maintain the normal operation of a new company.

But Li Mingyuan, vice president of Baidu, said at another leaders' forum during the Global Mobile Internet Conference that in the Internet era, "You would be better off starting more new businesses than maintaining old ones."

"The world has changed so fast. Now we have more industry segmentation. If you keep to your old businesses, the new markets will be lost to others. Kodak, Nokia and many other giants, which we never thought would fall, have collapsed while Facebook, Apple, Google, Baidu, Alibaba and many new Internet giants have risen as the industry's new leaders. They have not only taken the opportunities of the new era, but they also have the passion and speed to keep on innovating and starting up new businesses. "

The data from "Mobile Internet Talent Report 2015" by March 2015 show that the migrant employees in Beijing in the mobile Internet industry are mainly from Shanghai, Shenzhen, Tianjin and Wuhan while those leaving Beijing go to Shanghai, Shenzhen, Hangzhou and Guangzhou for further personal development.

As for the gender ratio statistics, more women took jobs in human resources and administrative departments. In technology, products, marketing and operations departments, nearly 70 percent of employees are male.

About 39 percent of Internet enterprises now start getting involved in mobile Internet businesses and beginning to recruit mobile talents. The social networks are most influenced by the mobile Internet industry, followed by mobile advertisements, online to offline e-commerce, online games, health care, cloud computing, e-commerce, education and search engines. Health care is a newly emerging and rising area while security, life, and media services have been slow to adapt to the mobile Internet. At the same time, burgeoning Internet financing service still has a long way to go, the report said.

As for the Internet giants, more people joined Tencent, Xiaomi and Qunar.com than the number that left them. But situation is the opposite in Baidu, Alibaba, Qihoo 360 and JD.com. In particular, in Baidu, the employee turnover rate is the highest in the industry as many want to join in it while many want to leave.

Bao Aile said Lagou.com studied more than 60,000 Internet companies before releasing the report and hopes that fellow practitioners will pay attention to the fierce competition in recruiting talents and to reflect on why they haven’t got enough staff or good enough employees.

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