How can Regional Agricultural products get out of the Regional Market

Over the years, Lei Bingyi, boss of Guanyun beef in Pingyao, has been very tangled. More than once, he discussed with Cao Jianming, head of the Industrial Chemistry Section of Jinzhong City, Shanxi Province, how regional products can get out of the regional market.

In June 2014, the emergence of Taobao Jinzhong Museum, a virtual geographical indication specialty museum, solved Lei Bingyi's entanglement and currently sells 46 million yuan online.

The market practice of Taobao Jinzhong Pavilion in the past two years shows that at present, e-commerce + regional specialty is one of the business operation modes of "Internet +" agriculture that can be seen and touched, and it has also become a channel for regional specialty products to break through to the national market. But e-commerce is not Sun WuKong, regional specialty sales will not be instant, but also need to make efforts in the marketing team and branding and other means of business operation, how the seller operates, so is how the government acts.

Virtual landmark specialty museum strides towards the national market

To say, Jinzhong City is the agricultural valley of Shanxi, with a wide range of native products. Many years ago, Pingyao beef Taigu cake, accompanied by Guo Lanying's beautiful singing spread all over the country. These two local products should not be a problem in the national market.

The reality is that the market of Guanyun beef can go to Beijing, Tianjin and Inner Mongolia at most, and the main market share is still in Shanxi or even Jinzhong. Taigu cake, as a small category, can not get out of the Jinzhong basin and can not reach the Taihang Mountains.

In 2013, the Jinzhong Municipal Party Committee and Municipal Government decided to build Taobao Jinzhong Hall to support Jinzhong City's agricultural products to enter the national market through e-commerce. In June 2014, Jinzhong Pavilion began to operate. The e-commerce model of the government paying the bill, selling goods by agricultural enterprises and increasing farmers' income has become a new way for Jinzhong City to use the market to drive the development of modern agriculture.

"it led the enterprise on the road, got on the bus, kept pace with the development of the times, and turned the enterprise's invisible, untouchable and unimaginable dream of e-commerce into a reality." Ji Fei, chairman of Rongxintang, said.

Prior to this, Rongxintang went through the local merchant super channel and returned 9% of the goods every month. In e-commerce, the return rate is zero. E-commerce does not have the admission fee, booth fee, bar code fee and so on. After reducing the intermediate links, both producers and consumers have a sense of success.

With the low-cost operation of e-commerce, Rongxintang Taigu cake has been sold all over the country, and the market share in South China has even exceeded that of the local market, making it one of the top 500 e-commerce food marketing companies in the country.

Within half a year, the sales of native products in Jinzhong City have blown out on this platform. Jinzhong agricultural enterprises have settled in Tmall's 23 shops and 167bazaar shops, with sales reaching 406000 units, with a total sales volume of 15.73 million yuan.

Half a year later, market differentiation has become a norm in Taobao Jinzhong Pavilion. By the end of 2015, the sales in the museum exceeded 70 million yuan and pulled online sales of 150 million yuan, of which Guanyun beef and Rongxintang Taigu cake were far ahead, while the sales of other native products did not increase significantly after the honeymoon period.

This means that e-commerce only provides a window and channel for regional specialties to "see" the national market, and hard work is needed to reach it.

"profit Partnership" eats the National Cake

There should be no doubt that Rongxintang's online sales exceeded 50 million in 2016, which is of great significance to a snack food that has been in the stage of picking up the basket and selling snacks.

The greater benefit after the electric shock is that Rongxintang began to implement the project of Taigu Amoy Housekeeping Warehouse Distribution Logistics Co., Ltd., providing logistics distribution and marketing export services for the county's native products, while reducing its own logistics costs. found a new profit growth point for the company.

This means that the e-commerce enlightenment of Taobao Jinzhong Pavilion has also catalyzed the e-commerce service of new business type in Jinzhong, adding professional service wings for regional local products to the national market.

How did they do it?

When Rongxintang entered the Taobao Jinzhong Pavilion in 2014, it chose to engage in a profit partnership with a mature e-commerce agent operating company, allowing a professional team to do professional things.

From art design to marketing, the annual salary of 3 million yuan for a total of 17 jobs is all done by Hangzhou Baoze operation company. From the expression of brand value of Chinese time-honored brands and intangible cultural heritage to the inexpensive and economical advertising expressions of the company's products have carried out all-round packaging planning for the marketing of the company's products.

"the cost is a little high, but the growth is there." Ji Fei said. What is the difference between other local specialty e-commerce companies?

Take Shanxi as an example, there are 10000 local products online "registered" on the Internet, about 7000 are dormant, about 2000 have achieved sales, less than 30 have sold more than one million yuan, and no more than 10 are a little bigger.

Native products e-commerce is not big, but difficult. Except for professional e-commerce, most e-commerce are faced with the dilemma of mismatch between logistics environment and storage environment.

In addition, the pictures, pages and interfaces that are suitable for netizens to feel on the Internet need to be updated and maintained by the professional team in a timely manner. These costs are shared among the agricultural products with thin profits, and it is difficult for sales to remain dormant.

Thus it can be seen that the service mode of Jinzhong Taobao Hall, which is paid by the government for inclusive regional specialty products, is win-win. Rongxintang has become the winner of regional specialty electric shock, which is closely related to their choice of professional team to engage in commercial operation and cooperation.

It is understood that this year, Taobao Jinzhong Museum settled in Shanghaiyu Food and Heyu Xiaomi, and also began to copy the path of Rongxintang, seeking a professional team to detonate their own national marketing.

Government purchase order helps regional specialties go out

The practice of Taobao Jinzhong Pavilion also answers a question: how can local governments help regional agricultural products to enter the national market?

"confidence is more important than gold." Ji Fei said frankly that it was with the support and policy guidance of the government that his worries about market risks were eliminated.

To put it bluntly, the e-commerce of agricultural products is "eyeball economy": the flow is not enough, which affects the sales effect, and is worried that it will not be sold. The advantage of Jinzhong's approach is that new business entities, such as farmers' professional cooperatives and agricultural enterprises, have enjoyed the pro-agricultural services electrocuted in Taobao for free, and are no longer worried about the flow.

What is the market significance of investing 2.6 million in the construction of regional landmark specialty pavilions and making e-commerce a universal service for local agricultural products?

First of all, Taobao Jinzhong Pavilion, marked by the regional culture of Jinzhong, has completed the secondary marketing of local local products in cultural identity, and cultural Jinzhong has become a means of brand separation for the online sale of agricultural products.

Secondly, in terms of operation mode, according to the principle of the construction of "Taobao characteristic China" project, Jinzhong Pavilion adopts the "1-1-1" operation mode of the government, operation service providers and Taobao platform.

Taobao officially provides Jinzhong Pavilion with operating channels and resources; assists operators to carry out local pavilion operations; data report support; e-commerce technical support; service training and service supervision.

Jinzhong municipal government decided to focus on the promotion of products; develop a local library network quality supervision system, strengthen the quality and safety supervision of primary agricultural products and endorse it; formulate and introduce support policies to guide enterprises and farmers to develop e-commerce.

Operational service providers integrate local specialty sellers to attract investment according to Taobao standards; collect, review and submit merchant qualifications; build and maintain the normal operation of the library platform; formulate operational strategies and achieve operational objectives; deal with customer service work; incubate and promote products with local characteristics; assist regional small and medium-sized sellers to grow.

The case of Rongxintang also shows that the effect of the government, the enterprise and the market is greater than 3. The purchase of services by the government and the commercial operation of professional teams have not only realized the popularity of the national market of regional products, but also driven the improvement of e-commerce environment and service means.

As a result, Jinzhong City provides its own answer on how to use the visible hand to open the door of the national invisible market for regional specialties. Although it is not a standard answer, the practice of Taobao Jinzhong Pavilion shows that this is a correct answer.