MySheen

Feed e-commerce reshapes the marketing chain

Published: 2024-11-06 Author: mysheen
Last Updated: 2024/11/06, Nowadays, the Internet is changing people's way of production and life. In rural areas, more and more farmers have stepped onto the highway of the Internet, enjoying the fruits of the new era, obtaining high-quality and inexpensive means of production and means of livelihood through the Internet window, and producing their own products.

Nowadays, the Internet is changing people's way of production and life. In rural areas, more and more farmers have stepped onto the "highway" of the Internet, enjoying the fruits of the new era, obtaining high-quality and inexpensive means of production and means of livelihood through the Internet window, and pushing their own agricultural products to the Internet.

Especially in the field of animal husbandry, a large number of enterprises layout feed e-commerce, subverting the feed marketing chain, bringing economic benefits for farmers, which in turn prompted more and more young farmers to join the embrace of feed e-commerce.

Industry insider

Farmers are expensive.

Transaction cost pays the bill

Liu Jiangang, a pig farmer in Jingxing County, raised 40 sows and used to buy pig feed from sellers. At the end of last year, he heard from people from neighboring villages that it was cheap to buy feed online, so he tried to buy the same brand of feed from a feed trading website. "I often buy the premix of the brand of tomorrow, 20 kilograms a bag, which sells for at least 130 yuan on the market and 84 yuan online."

In the traditional marketing mode, where is the price difference of 46 yuan for this bag of feed? Most of them become "hard money" and put it in the pockets of marketers.

A person with more than 20 years of experience in the feed industry revealed that there are huge profits in the marketing of feed and veterinary drugs, which can even be called "exorbitant profits". "for a ton of medium and large pig premix on the market, the formula costs no more than NT $2000, plus packaging, production, logistics, and other expenses, it is only NT $3000, but how much is the market price? It sells for at least 4500 yuan, and some even more than 6000 yuan. " In this way, to sell 1 ton of premix, in addition to dealers to earn more than 1000 yuan, salespeople's marketing expenses also need hundreds or even thousands of yuan. "after all, 'the wool comes from the sheep', and these fees are still paid by the farmers." He told reporters that the cost of feed accounts for about 60% to 70% of the cost of raising livestock. Because the channel information is not smooth, farmers pay for the high transaction costs all the year round, resulting in pigs or chickens often do not make money or even losses.

Subvert the industry

End the era of "profiteering" of feed

As long as there is a pain point, there will be subversion. These "pain points" of farmers are the new areas of "Internet +".

It is understood that last year's national livestock feed trading volume was 2 trillion yuan, of which the vast majority of the transaction process was reached through traditional dealers and salesmen. As a result, many people with Internet thinking see the business opportunities contained in it, and animal husbandry e-commerce websites are springing up like bamboo shoots after a spring rain: pig E Network has created two e-commerce platforms of boutique Hui and Trading Yi, and China's breeding network has built three axe malls. China Pig Network opened a pig shopping mall and so on.

Entrepreneurs in the provincial capital have followed suit, with an animal husbandry e-commerce project in the Beijing-Tianjin-Hebei Entrepreneurship Center-China Feed Mall Network. This mall is a professional e-commerce trading platform that started earlier in the animal husbandry industry, providing online trading functions for feed industry products such as feed raw materials, feed additives, veterinary drugs, breeding equipment, etc., allowing farmers to connect directly with manufacturers, solve information asymmetry, reduce channel links, and improve the efficiency of the allocation of animal husbandry resources.

The mall has had 15000 registered members in just a few months since it officially opened in November last year. This model will undoubtedly put an end to the "profiteering" era of the feed industry and maximize the protection of farmers' rights and interests.

Zhao Jianghai, a pig farmer in Lingshou County, is a consumer of the mall. He raises 200 pigs with a cycle of three to four months and needs to be fed 40 to 50 tons of feed. He often buys a kind of feed, one bag is 40 kilograms, the price difference between online and brick-and-mortar stores is about 20 yuan.

He calculated that an average pig needs 9 bags of feed, and buying it online can save 180 yuan. "the price of live pigs has been falling last year. The purchase price is 5.5 yuan per jin. Many farmers can only make money by selling 6 yuan, while I can keep the cost by selling 5.5 yuan. So my pig farm hasn't lost money recently. " Today, Zhao Jianghai has become a "part-time" promoter of the website, driving many farmers around to place online orders to buy feed.

Industry growth

Develop products around user needs

The Internet is an open field, so it is inevitable to imitate and copy each other.

A large number of animal husbandry industry information websites have poured into the blue ocean of animal husbandry e-commerce, investing money and manpower to develop online trading platforms, in order to seize the opportunity to make use of the flow advantages of existing industry information websites before the emergence of the industry oligopoly. lead some existing farmers to their own platform mall, thus achieving success. Standing on the "tuyere" of animal husbandry e-commerce, how can you win the first place?

In constantly testing the waters, these animal husbandry e-commerce have found a "doorway", that is, "users are king". Who can let farmers really get real benefits, whose services can effectively help farmers solve practical difficulties, farmers will patronize which mall.

Centering on the needs of farmers, China Feed Mall Network has planned and launched a series of projects, such as working with banks to provide small loans to farmers, and working with slaughterhouses to help farmers sell meat, eggs and other livestock products. At present, the technology department of the website is also developing an intelligent background independently, and farmers can download this background to the mobile phone terminal so that they can operate the feeding link anytime and anywhere, without having to stay in the pig farm or chicken farm all the time.

Although the e-commerce of animal husbandry industry has just started, countless people have seen its broad space for development in the future. Many farmers believe that the animal husbandry e-commerce platform has disintegrated the exorbitant profits of all aspects of feed distribution, allowing them to buy quality and cheap products, for this reason, it is enough to believe in the broad prospects of animal husbandry e-commerce.

Some people in the industry said that at present, it is a general trend to reduce traditional distribution costs, reduce circulation links, and improve circulation efficiency. Aquaculture practitioners are getting younger, more educated and networked, which indicates that animal husbandry e-commerce is a new market.

But at present, this new market has also encountered some obstacles, such as farmers avoiding the risk of online shopping, consumers are difficult to determine the quality of feed, online sales lack of brand appeal, and so on. Therefore, in the long-term development of the industry, animal husbandry e-commerce still has a long way to go.

 
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