Dating website rebuffs media speculations

Gong Haiyan, CEO of dating website Jiayuan.com International Ltd, Tuesday refuted media reports that the recent departures of several senior executives were related to problems within the company, and stressed that the departures are part of routine staff turnover.

"After we got listed on the NSADAQ last May, we have hired new senior executives to support business growth," Gong said, noting that the newly hired executives are better qualified for their positions.

Gong said Jiayuan has hired two new vice presidents this year for media relations and high-end services.

The website recorded a net loss of 1.2 million yuan ($190,000) in the fourth quarter of 2011, down from a net profit of 10 million yuan in the same period of 2010, according to its financial statement released on March 6.

The loss raised concerns over its future profitability, and led to a 20 percent plunge in its shares the day after the results were announced.

Gong attributed the fourth quarter's loss to increased spending on advertising and tried to dispel concerns over profitability by saying that her company achieved a net profit of 37.2 million yuan in 2011, up 122.8 percent year-on-year.

"Dating websites can hardly retain consumers as they provide one-off services, and advertising is the best way to attract new consumers," Gong said.

Moreover, brand building has become more important to increase user stickiness, You Tianyu, an analyst at market consulting company iResearch, told the Global Times yesterday.

"The real-name system promoted by baihe.com, a major competitor of Jiayuan, is helpful in enhancing brand value and attracting more consumers who are willing to pay for services," You noted.

With microblog and classifieds website ganji.com offering anlternative avenues for meeting people online, the competition in the dating services market is getting intense and dating websites are looking at mobile Internet services for growth.

Jiayuan plans to soon hire an experienced executive for its technology and product operation to boost its mobile Internet offering and enhance user experience, Gong noted.

Dating website zhenai.com is also developing mobile Internet applications and trying Weibo-style marketing.

"It's necessary for dating websites to enter the mobile Internet sector and a combination of online and offline services can help them earn more profits," You said.

According to iResearch's data, Jiayuan leads the dating websites in terms of number of monthly visitors with 20.3 million visitors last December.