The First Kilometer Of Agricultural Industry Will Be Opened

Social e-commerce has become an indispensable backbone of China's e-commerce industry.

Recently, pinduoduo CEO Chen Lei disclosed that currently pinduoduo has less than 7000 employees, and the daily average number of packages sent by pinduoduo has exceeded 70 million, accounting for about one third of the country. We have benefited from a large number of orders in the whole society, and the number of orders has been increased.

In addition, he said that he would increase investment in agricultural logistics infrastructure and develop the first-class logistics infrastructure together with the agricultural logistics industry.

Chen Lei pointed out that China's digital economy penetration rate has reached 36%, but only 8.2% in agriculture. The digital transformation of agriculture needs a lot of equipment and software, but first of all, it needs "new farmers" who understand both agriculture and e-commerce. The lag of agricultural digital level, unstable quality of agricultural products, difficulty in standardization and asymmetric information of production and marketing are the main reasons for the difficulty in agricultural product sales.

With the birth of pinduoduo's daily peak orders exceeding 100 million, pinduoduo has created a record and become the fastest enterprise with daily orders exceeding 100 million. Previously, pinduoduo also set two records for the fastest breakthrough of 100 billion US dollar market value and the fastest Gmv of more than one trillion. Outlook think tank believes that domestic demand is the basic driving force for China's economic development, and consumption is the ballast stone for stable economic operation. Under the background of China's development towards a new dual cycle development pattern with domestic circulation as the main factor and international and domestic mutual promotion, the online new economy provides a link for the domestic circulation of consumption economy, and the new digital platform represented by pinduoduo has become a new engine to expand domestic demand.

Accelerating the integration of modern agriculture

On October 21, Yandu District Government of Yancheng City, Jiangsu Province, and pinduoduo reached a comprehensive cooperation in promoting high-quality agricultural products in Yandu. The two sides are committed to opening up new online sales channels of "Yandu haohuohuo" and accelerating the integration of Yandu modern agriculture with the Yangtze River Delta. In the future, it will carry out all-round cooperation in the fields of green agriculture, brand agriculture, science and technology agriculture, digital agriculture, and the training of new farmers and new farmers.

As one of the main urban areas of Yancheng City, the central city of the Yangtze River Delta, Yandu has the reputation of "Water Village wetland" and "land of fish and rice". A linkage pattern of "three areas" has been formed, including eastern urban leisure agriculture, central facility fruits and vegetables, and western characteristic aquatic products. Four leading industries, namely green fruits and vegetables, fine flowers, ecological aquatic products and high-quality rice, have been created.

"Yandu has unique resource advantages and industrial foundation. With the help of pinduoduo's nearly 700 million users and the big data of agricultural product consumption demand, we will comprehensively boost the construction of Yandu agricultural products uplink system, so that" Yandu Haohuo "can better connect with target consumers." Pinduoduo vice president Dirac said at the meeting.

Yandu District attaches great importance to the development of modern agriculture. It has many positive factors, such as the advantages of water town, geographical location, ecology and modern agricultural science and technology. In recent years, it has made great efforts to develop characteristic and efficient agriculture according to local conditions. The area of strawberry, grape, flowers, vegetables and other facilities in the region has reached 174000 mu, and the cultivation area of hairy crabs has reached 200000 mu. It is a national demonstration area for comprehensive cultivation of rice and fishery and the hometown of Chinese river crab.

"In recent years, Yandu District has been closely following the core of agricultural efficiency and farmers' income, vigorously promoting the structural reform of agricultural supply side, and accelerating the transformation of agricultural development mode." Wang Jue, deputy head of Yandu District, said that the high-quality agricultural products in Yandu District are expected to reach consumers through new e-commerce channels, so as to promote the optimization and upgrading of corresponding industrial belts.

As China's largest agricultural products uplink platform, pinduoduo's agricultural (by-product) trading volume will reach 136.4 billion yuan in 2019. It is estimated that the sales scale of agricultural products and agricultural by-products on the platform will further increase to 250 billion yuan in 2020.

Dirac said that pinduoduo will spare no effort to provide convenient measures such as resource support, flow inclination and technical services, so as to accelerate the network access and digital transformation of advantageous industries such as agricultural products in Yandu District. In addition to a series of online assistance measures, pinduoduo will continue to help local enterprises cultivate and attract e-commerce talents through "Duoduo University" and other training institutions offline.

Open up the middle channel of production and marketing

In the past five years, the sales scale of agricultural products has maintained a compound growth of more than 100%. The upward growth rate and efficiency of agricultural and sideline products are also far higher than the average of e-commerce industry.

On the consumer side, "shopping for fresh and cheap agricultural products" has become more and more people's daily life experience. On the supply side, pinduoduo directly connects more than 600 important agricultural production areas. In the poverty-stricken areas of Yunnan, Guizhou, Hainan, Gansu and other provinces and cities, pinduoduo is in-depth reforming the "first kilometer", improving the quality of agricultural products, helping farmers become the dual subject of operation and income, and promoting the birth of new agricultural products brands.

Taking the hairy crabs in DAZONGHU Lake as an example, as a local business card, the hairy crabs in DAZONGHU lake have become a benchmark for the integration of modern fishery in Yandu city into the consumption integration of Yangtze River Delta. Previously, on September 16, at the first hairy crab cloud competition festival in the Yangtze River Delta, Yandu DAZONGHU hairy crab high-quality production area joined pinduoduo to join the "Yangtze River Delta hairy crab cloud competition high-quality product alliance". Through the activities of "official flag entry", "lake fishing", "county mayor live broadcast" and "ten thousand people group" in pinduoduo, consumers across the country can compete and buy good crabs in salt city without leaving home.

The cooperation of hairy crab industry is just a microcosm. Online new economy has created a new rising path for Chinese brands and Chinese agriculture. Pinduoduo is an important track for the rise of Chinese brands and the release of consumption potential. Different from the traditional mode of "positioning advertising distribution earning premium" of traditional European and American brands, China's new brand and pinduoduo and other new e-commerce platforms have jointly explored a new model of "consumer customization subsidy profit making through large-scale shipment", so that Chinese consumers can enjoy the dividend of China's manufacturing.

Due to the elimination of the transportation, packaging, manpower and other links of agricultural products in various regions, from the field directly to the dining table, removing the redundant costs in the middle, both farmers and consumers benefit. Industry personage thinks, spell more use origin straight hair, solved the problem of circulation link in one fell swoop. In many commodity categories, pinduoduo's supply chain is extremely streamlined without intermediate consumption, which is one of the reasons why most products of pinduoduo platform can achieve the lowest price of the whole network.

The consumption needs of new consumers need to be met urgently, and there are still huge dividends in this market. According to the financial report data, pinduoduo's revenue in the second quarter was 12.193 billion yuan, up 67% from 7.290 billion yuan in the same period of 2019. Tianfeng securities Wen Hao said that pinduoduo's growth was significantly higher than that of the industry, mainly because the company's platform was mainly small and medium-sized businesses. In the face of the epidemic, small and medium-sized businesses responded relatively quickly and quickly started to de inventory. In this quarter, pinduoduo still maintained a high growth rate in the case of significantly reducing sales expenses.

At the same time, the company's performance loss has improved significantly, which verifies the effectiveness of pinduoduo's business logic from the perspective of profitability. It is expected that pinduoduo will continue to expand categories, continue to invest to improve user participation, continue to invest in the construction of agricultural product supply chain, improve the penetration rate of agricultural products e-commerce, and the strategy and Growth Logic of pinduoduo remain unchanged.

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