MySheen

Nearly 4000 e-commerce businesses related to agriculture in China make a profit of 1%.

Published: 2024-11-06 Author: mysheen
Last Updated: 2024/11/06, On the 16th, the "2014-2015 China Agricultural products E-commerce Development report" was released in Beijing. Hong Tao, director of China Food (Agricultural products) Safety Electronic Commerce Research Institute and professor of Beijing Industrial and Commercial University, said that agricultural products e-commerce has become a new hot spot after books, clothing and 3C.

On the 16th, the "2014-2015 China Agricultural products E-commerce Development report" was released in Beijing. Hong Tao, director of China Food (Agricultural products) Safety Electronic Commerce Research Institute and professor of Beijing Industrial and Commercial University, said that agricultural products e-commerce has become a new hot spot after books, clothing and 3C. According to statistics, there are nearly 4000 agriculture-related transaction e-commerce in China, but only 1% of the e-commerce can make a profit because of the problems such as disorderly competition in the trapped market and high logistics costs.

Taking the sales of agricultural products on Ali platform as an example, sales have increased from 3.7 billion yuan in 2010 to more than 80 billion yuan in 2014, with an average annual growth rate of 112.15 percent, according to the report. In terms of fresh e-commerce on Taobao, the transaction volume of fresh e-commerce nationwide reached 13 billion yuan in 2013, an increase of 221% over the same period last year and is expected to reach 26 billion in 2014.

In terms of the number of e-commerce, according to statistics, in 2014, China's agricultural e-commerce enterprises reached 31000, including 4000 agriculture-related transactions, forming a "two super, multi-strong, minority" market pattern. The "two supermarkets" composed of Ali and JD.com occupy the main share, while some emerging agricultural products e-commerce have also formed their own characteristic development model after receiving capital injection in recent years.

With regard to the problems existing in the e-commerce of agricultural products in China, Hong Tao pointed out that the homogenization of the construction of e-commerce websites is serious, resulting in disorderly competition, loss-making operation, and the coexistence of construction and closure of stations. According to the report, at present, only 1% of domestic agriculture-related transaction e-commerce can make a profit, 7% have huge losses, 88% have a slight loss, and 4% are flat.

In this regard, Zhang Guo, director of the Market Circulation Department of the Market and Economic Information Department of the Ministry of Agriculture, said that many people do not have a sufficient understanding of the e-commerce of agricultural products. If every peasant household works as an e-commerce business, it will cause the situation that the goods are sold out on the first day and there are no goods to sell on the second day, which is also a waste of resources. He suggested that we should develop agricultural products e-commerce intensively, establish brand awareness, and explore the profit model of agricultural products e-commerce.

In addition, logistics, as an "old problem" in the development of agricultural e-commerce, still exists. Nie Linhai, deputy director of the e-commerce department of the Ministry of Commerce, said that China has always had the problem of high logistics costs. He pointed out that the fundamental reason for the high logistics cost is information asymmetry. At present, there are about 700000 logistics enterprises, 1.7 million related distribution vehicles, 40% of the trucks on the highway are empty, there are too many small logistics enterprises, and the development of the industry is too scattered. To solve this problem, we must establish an information platform and build intelligent logistics.

 
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