Alibaba wants to be involved in rural e-commerce or cooperate with Evergrande

by:Desing      2021-03-30
News from China Sheep Network:

   Jin Jianhang, President of Alibaba Group, recently revealed in Changchun City, Jilin Province, in Northeast China, that after the successful listing on the New York Stock Exchange, agriculture-related e-commerce will become one of the three key areas of Alibaba Group's future layout.

   On the 22nd, the 'Characteristic China Jilin Pavilion' of Alibaba's Taobao platform was officially opened. 'Characteristic China' is an important e-commerce section of which focuses on local special agricultural products, with tourism and special handicrafts.

   A full-grained sunflower flower plate can only be sold for 3 yuan in a county-level city in northeast China; while on Taobao, the price of this flower plate is 38 yuan, and it can sell more than 3,000 in one day.

   Since 2010, the average annual growth rate of agricultural product sales on the Ali platform has been 112.15%. The sales of agricultural products have grown from around 3.7 billion yuan in 2010 to about 80 billion yuan by the end of this year.

   In 2013, Taobao's fresh products (including aquatic products, meat and fruits) grew by 194.58%, ranking first among all categories.

   'We determined that e-commerce related to agriculture will be a blue ocean in the future, so we decided to give it a try.' Jin Jianhang said.

   In China, the first product to be sold through e-commerce is books. Since then, from clothing to electronic products, the main products of Chinese e-commerce have undergone several changes.

   For a long time, in this large agricultural country, agricultural products have been considered unsuitable for sale on e-commerce platforms.

  'Agricultural products are commodities that attach great importance to experience, and they have high requirements for basic logistics and distribution. In addition, the Chinese have long formed the consumption concept of purchasing agricultural products in farmer's markets and supermarkets. E-commerce-related agriculture was once not favored. 'Alibaba Group Research Institute researcher Chen Liang said.

   However, Alibaba’s research team found that China’s traditional agricultural production and marketing methods have many shortcomings, and the traditional agricultural product sales and supply chain is too complex, which is not good for both producers and consumers.

   Producers do not have the right to set prices, and it is always difficult for farmers to increase their incomes. In a market with uneven quality, consumers also need experience and wisdom to buy genuine goods at a fair price.

   Wang Ziqian, a citizen living in Ningbo City, Zhejiang Province, found that it is difficult to buy authentic Xinjiang Hotan dates from the market.

   Later, Wang Ziqian chose to look for 'authentic' in the online store. 'Some online stores that specialize in local agricultural products are co-operated by e-commerce companies with local governments. Food safety is also checked by local governments, so I can buy them with confidence.'

   'The more backward and closed areas, their agricultural products are often original and rare, and the stronger their desire to change their living conditions through e-commerce.' said Yu Xianghai, general manager of Taobao Innovation Division Say.

   Northeast China is the main grain producing area in China. During this period, Gongzhuling City Commerce Bureau Director Sun Dianpu planned to organize producers and operators to concentrate on learning e-commerce knowledge. 'Open a few more online shops to sell the village's specialty products such as beans and corn to the whole country.' He said.

   Evergrande Group announced in August this year that it will invest heavily in the development of grain and oil, dairy and animal husbandry industries in Northeast China. The investment is expected to exceed RMB 100 billion (approximately USD 16.3 billion).

   Jin Jianhang revealed that agriculture-related e-commerce is very likely to become the next area of u200bu200bcooperation between the two Chinese 'giant' companies. The organic rice and other products grown by Evergrande Group will be sold through the e-commerce platform provided by Ali.

   Jiang Haihong, Deputy Secretary-General of the China E-Commerce Service Industry Alliance, believes that after successfully raising more than 20 billion US dollars in the US listing, Ali Group will invest the money in its three planned areas, which will not only promote the optimization and development of the C2B model , And will profoundly reconstruct the way of life of Chinese farmers in the future.

   'By ‘buying the world’ and ‘selling the world’, Chinese farmers’ income and rural consumption will both usher in an increase, and the employment rate of surplus rural labor in China will also increase substantially.” Jiang Haihong said.
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