Chinese Electric Commercial Enterprises Seize Market Share among Hinterlands
With urban markets nearing saturation and established patterns of competition, electric commercial enterprises like Jingdong are now in a desperate attempt to seize market share among hinterlands.
Thousands of convenience stores have already popped up in countryside where people can order from online store, and sent offline by convenience store logistics system.
Meanwhile, the third party electronic commerce platform has created a good opportunity for farmers to start low-cost electronic business, and local government encourages villagers to establish manufacturing base on the basis of product resources.
YaoYang, the president of National School of Development in Peking University holds the idea that the booming e-commerce development in rural place relies on the deepening of the Internet industry, adjustment of industrial structure and upgrading of industries. Also, migrant workers who bring the idea of shopping-online have played an important role on online trading.
However, there still exists problems that no one can overlook.
Logistics comes to NO.1. All express companies except China Post only cover to County level, which is extremely inconvenient for online consumers. According to a Chinese magazine “Fujian”, the postage gap among different electric business platforms could be far apart. For example, when buying a book online, the postage can cost as much, if not more, than the book if the destination is Tibet or Sinkiang, while only 6 Yuan in Beijing. Surely it’ll be hard to sell books, since no one fancys additional postage costs.
Besides, the Internet’s lame popularity and limited consumer awareness also plays a big part in rural e-commerce. According to a survey commissioned by China Internet Network Information Centre, as of December 2013, China’s Internet users had gone beyond 60% in cities, but only 27.6% among rural areas, far behind the world’s average level.
In spite of this, all of these obstacles cannot curb the ambition of electric commercial enterprises, especially when they see the rural netizens’ booming growth rate (13.5%), which means almost every 5 online consumers, one is from countryside.