Wang Yang Currently co-founder of Hunan Nongzesheng Technology Co., Ltd.; Senior e-commerce lecturer at Beijing Municipal Commerce Committee; Former Vice President of Duodian Life (China) Network Technology Co., Ltd.; Founder of Linjiahui (Beijing) Technology Co., Ltd.; Former General Manager of Beijing Huapan Technology Co., Ltd.;

What development models of rural e-commerce do you know? As newcomers, do you have any directional guidance or suggestions? Answer: There are many models currently, mainly supply chain and platform matching models, and some that enter from the financial side. The key issue is how to view existing county-level agents and small B (small businesses). We see county-level companies as cooperative partners, not agents; township supermarkets as terminal service providers, not sales terminals. So our starting point is different. We believe agents are an indispensable link. Many B2B companies now recognize this. Finance, logistics, and services always need someone to do them; agents have their value, so we integrate rather than replace.

What are the opportunities and implementation measures for rural e-commerce? Answer: Everyone is entering and experimenting with rural e-commerce in different ways. B2B, B2C, and B2B2C are all being tried, and industry leaders like JD and Taobao have entered. The key points of rural e-commerce are still products and logistics. But direct-to-consumer (2C) costs are too high, so JD and Taobao are adjusting and need to explore and practice different approaches. Implementation starts with understanding the rural market and its habits. Too many companies are applying urban e-commerce models, which is difficult. Many rural people don't use cards; how to achieve online payment? Many rural people have WeChat but only use the red envelope function. These are real problems. So we are currently discussing solutions with UnionPay to try some approaches to rural payment. These are basic tasks.

How to solve rural e-commerce logistics? Answer: Let me talk about our company's solution. We integrate strong local agents who have good warehousing and distribution systems, and we use their warehousing and distribution as agreed. County agents already do vehicle sales, so they can just deliver goods along the way. This significantly reduces costs and brings profits to the agents.

Can the model of JD's New Roadmap be borrowed and applied by ordinary e-commerce companies entering the rural market? Answer: I hope my answer won't get me brickbats, haha. JD is at the top level. Personally, I think the direct supply model is difficult. From what I understand and observe: 1. Logistics costs: sending from large warehouses to counties is fine, but how to deliver to townships? Full truck down, empty truck back, how to cover logistics costs? 2. Small B needs services, such as handling large-date products and return/exchange issues. 3. Counterattack from local agents. 4. Cross-regional sales (diversion) issues. 5. How manufacturers choose; established channels of many years won't be easily abandoned.

Have you tried the O2O model for rural e-commerce, and what were the results? Answer: We are still planning. We are gradually building a social network economic circle based on townships; the offline part is completed by supermarkets, and the online part by Nongzesheng. Township consumers show obvious dual attributes: producers and consumers. This is completely different from urban single consumers. We hope to connect with them through supermarket membership systems to complete rural O2O e-commerce.

How to get villages with small arable land involved in e-commerce? Answer: I want to ask in return: why join e-commerce? I think first you need to make your own products good; e-commerce will find you. A confusion in fresh e-commerce is the difficulty in finding good, stable products. The country is now doing land transfer, which is beneficial and a direction.

How to integrate the upstream supply chain in agricultural e-commerce? Answer: Whoever has the power can integrate. If your downstream is smooth and your volume is large enough, upstream will naturally find you. Rural e-commerce has its characteristics, but it is still one of the channels.

For the future development of rural e-commerce, if you only do county-level cities, what issues should you pay attention to? Answer: The county-level market is large, and conditions vary by region, so you need to fully understand it. Personally, the key is how to view local distributors: replace or cooperate? How to distribute benefits in the entire chain? Once you think this through, you can boldly try.

Can your model be franchised and promoted? What are the profit sources? Answer: Let me advertise: welcome friends who are willing to cooperate! Our main models: 1. Supply chain

  1. Existing part: For products operated by county agents, the company focuses on services to reduce agent operating costs and does not compete with agents for profits.
  2. Incremental part: For the low SKU count in rural supermarkets and the demand for consumption upgrades, the company gradually increases self-operated categories, including physical and virtual goods, to earn gross profit. 2. New media marketing New media marketing directly reaches end consumers, creating the first screen for rural media advertising. 3. Big data Collect purchase, sales, and inventory data from small B through software and hardware, build a rural consumer goods consumption database, and enable data trading. 4. Rural mobile social network economic circle Relying on small B, establish the Nongzhasong membership system, carry out membership marketing and fan economy, and complete the township O2O system.

What are the offline service entities in rural e-commerce? Is the logistics team/distribution the most difficult part? Answer: Offline, I understand as value-added services. As mentioned, we see small B as service terminals. Many services can be grafted, such as gas, water, electricity payments, and train ticket purchasing. These are not needed in cities but are in high demand in rural areas. We are also piloting game promotion and agricultural loan withdrawal services. There are many models. Logistics team/distribution is a problem for other peers, but we integrate agents, so it's not a problem for us.

How to ensure the supply chain for agricultural product e-commerce? Answer: For downstream, manufacturers and agents need to jointly control the market. Our system can identify barcodes and we have built a product barcode library, which includes anti-counterfeiting functions. For upstream, we haven't done it yet, but we have plans. We hope to use small B as the core, county agents as the fulcrum, and cooperate with other agricultural product e-commerce to provide services.

What is the current competitive situation in the rural e-commerce township market? Answer: Rural e-commerce is highly competitive, but it is also the biggest market, with trillions of yuan. Our research data shows that 80% of rural daily necessities and FMCG are sold through supermarkets. In 2015, the rural consumer market was 4 trillion yuan, and competitors are trying to enter through different methods and paths.

We are also doing rural e-commerce, collecting local agricultural products from farmers and selling them. What is the future, or do you have any suggestions? Answer: Agricultural products have major problems: 1. Insufficient standardization; 2. Unstable production capacity; 3. Unstable quality; 4. Logistics, especially cold chain transportation and storage. So far, no good solutions have been seen. But the market is too large; I believe some company will develop a good model within 3-5 years. Nongzesheng is also laying out plans, using small B as the core and county agents as the fulcrum to serve partners.

For partners joining county-level rural e-commerce, how long will it take to break even? Which type of platform do you prefer? Answer: Of course, we prefer Nongzhasong. For joining partners, you need to think clearly about what you want. E-commerce is not mysterious; I personally think it is just one of the channels.

Besides talent and logistics, what other bottlenecks hinder rural e-commerce development? How to solve them? Answer: Logistics depends on how you do it. I suggest cooperation rather than self-building, especially for townships, as costs are too high. We move fast thanks to the support of county agents.

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