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Another battle of Pinduoduo: "New Year Goods Festival" to open up the production and marketing supply chain

author:21st Century Business Herald

There are less than half a month before the Spring Festival in 2022, and due to the spread of the epidemic, people who go out to work may not be able to go home, but the New Year goods they buy online have already taken the car home.

At present, e-commerce platforms are about to throw themselves into another battle, that is, the online New Year Festival. "This year, on the basis of fresh fruits, nut snacks, drinks, home department stores, beauty clothing, digital home appliances and other categories of promotion, the platform will meet the needs of the festival and focus on quality agricultural goods, unite with national brand flagship stores, and tap local special New Year goods and the world's top good products." The person in charge of the goods festival who has been fighting for many years has played the emotional card.

He said that Pinduoduo will tilt resources such as "tens of billions of subsidies" and "10,000 people", and strive to make consumers in first- and second-tier cities such as Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou "fight" together for the New Year, and the majority of rural consumers will achieve the upgrading of New Year goods, and strive to ensure the stable supply of "vegetable baskets" and "rice bags" during the Spring Festival.

At present, Pinduoduo has joined hands with more than one million quality merchants and thousands of agricultural and sideline product brands to jointly launch the "New Year Goods Festival". It is worth noting that in the most core logistics link, Pinduoduo also opened a 24-hour rapid delivery channel of "good New Year goods do not have to wait" during this period.

In recent years, due to the impact of the epidemic and the change of people's consumption habits, the procurement of New Year goods has changed from scattered offline procurement to centralized online shopping. With the support of a large number of users and duoduoduo, Pinduoduo has connected small farmers and large markets, and opened up the supply chain at both ends of production and marketing.

Another battle of Pinduoduo: "New Year Goods Festival" to open up the production and marketing supply chain
In the production workshop of the micro-ant cloud warehouse, workers are working non-stop. Zhan Zhao | photographed

New Year goods open up urban and rural areas

Hometown, 10,000 people' groups, New Year's taste, and specialties are the four keywords of this multi-year festival.

"Different from 11.11, the New Year Festival is not a simple 'big promotion', and the purchase of New Year goods is an indispensable top priority for every ordinary person's family. Continuing to match the escalating demand for new year goods from urban and rural consumers, through the 'sharing of urban and rural new year goods', promoting all production areas to grasp the peak season of new year goods sales, and opening up the national market, is our goal to fully stimulate and match this new wave of consumption during the Spring Festival. The person in charge of Pinduoduo said.

The Spring Festival is a very important festival for every Chinese, and the memory of running New Year goods runs through people's memories since childhood. Sniff a melon seed, peel a peanut, accompanied by the crispness of the stir-fried goods, the parents are short, chattering, and the taste of the New Year is no longer dull. In the era of lack of materials, melon seeds and peanuts have become very popular. In the context of consumption upgrading, the level and preference of urban and rural consumption are getting closer and closer. Imported nuts such as pistachios, macadamia nuts, and pecans, as well as domestic top goods such as Liaoning Dandong strawberries, Gansu Yongchang lamb, and Shandong Shouguang vegetables, are also warming up with consumers online.

In Jieyang, Guangdong, the "Lingnan Water City", snack food is one of the key industries in Puning and Jiexi, and the New Year Festival has become the busiest sales season in the region.

"Nine times out of ten, this year's livelihood has fallen in the month of the year before." Lai Zuoxin, head of the local head nut enterprise Micro Ant Cloud Warehouse E-commerce, said that in the past, imported nuts were expensive, and many people were reluctant to eat. "But in recent years, everyone's pockets have been inflated, consumer confidence has been sufficient, and the direct supply of the source has also made 'foreign nuts' more affordable."

Taking pistachios as an example, because only a small amount of cultivation in Xinjiang, raw materials and fruits are mainly imported by the United States, Iran and other countries. The harvest period for American pistachios is from October to December each year. After they crossed the ocean and went straight to Jieyang, Lai Zuo's new team immediately baked, packed, packed, and shipped. Since November 2020, with the help of Pinduoduo, they have directly connected the processed foreign direct pistachios to consumers, shortening the time and cost cost, and achieving "both delicious and not expensive".

The same is true of cherry, which is widely concerned almost every year during the Spring Festival. Based on the shortest supply chain model jointly created by the Chilean Cherry Committee and Pinduoduo, at present, Chilean cherries that arrive in Shanghai or other port cities by sea, air transport, etc., do not need to undergo multiple distribution or lengthy transportation, and platform merchants can directly sort and ship from the nearest warehouse. "Freshness is the life of cherries, and we hope to use the cross-border high-speed channel of 'Chilean orchards directly to Chinese family fruit baskets' to provide Chinese consumers with the 'ultimate' cherries with straight hair and fresh drops." Wu De, Chilean commercial consul in Shanghai, said earlier.

In addition to the traditional grain, oil, rice, noodles, Dandong strawberries, Shouguang vegetables and fruits, Hubei lotus root, Hengzhou corn, Fujian bamboo shoots, Gansu mutton, Zhoushan, Zhanjiang, Dalian and other places of seafood, as well as orange and orange fruit brand gift boxes and other fine production of landmarks and brand agricultural products, is also Pinduoduo's hot new year goods.

In the eyes of industry insiders, through the New Year Goods Festival, the difference between urban and rural areas will be further narrowed, and rural people can buy global New Year goods, not only will they not buy cottage goods again, but also put the purchase vision on the world. Chinese New Year's Eve rice in the village may feature seafood from New Zealand, red wine from France, or nuts from the United States.

On the other hand, Pinduoduo is also finding a market for rural local goods through its own deep cultivation of channels. "Selling products directly to consumers through Pinduoduo's channels can eliminate many intermediate transaction links and allow consumers to enjoy real benefits." Lai Zuoxin said that a bottle of pistachios can be sold to consumers at a price of 12 yuan / bottle on the basis of the factory price plus the cost of logistics and packaging materials. But the same quality of things, after several turnovers, the price on the market may be close to 20 yuan, which is also the advantage of the industry belt merchants to do e-commerce.

At present, they have prepared about 2 million orders and about 4 million bottles of pistachios for the many years of the festival. "Such a stock volume, but also worry about not selling enough at that time, the purchasing power driven by the New Year goods festival is too strong."

"The rural market is imaginative"

In Dandongdongdong, the largest strawberry production base in the mainland, this year's "red face" strawberries were replaced with rich red clothes early. As a potential new year explosive product on the Pinduoduo platform, this year's Dandong strawberries are well supplied and of excellent quality. To some extent, this stems from the fact that some local head farms have introduced the AI planting system of the first Multi-Toto Agricultural Research Award-winning team "Zhiduoberry" in the new production season, which has achieved the improvement of human efficiency and yield from one greenhouse for two people to one person for seven greenhouses.

"On New Year's Day, I gave three aunts and two uncles in rural Hunan a box of 99 strawberries each, and within a few days, I found that they quietly began to buy themselves." Mr. Liu, who has just settled in Shanghai, said that he is usually accustomed to picking tens of billions of subsidies to buy shops, and the small circle has become the most labor-saving "procurement base" for the whole family.

It can be said that strawberry growers seized the Spring Festival, and this sales season was half successful. Donggang strawberries from the local market in Liaoning to the whole country, there are two keys, one is a stronger supply chain, can continue to provide stable quality of commodity fruits; secondly, there are more efficient sales channels, so that consumers across the country can easily buy.

This year, Wang Qiu's RareBerry Good Fruit Fresh Flagship Store was selected for the Pinduoduo Ten Billion Subsidized New Year Goods Festival, and once rushed to the first place in the strawberry best-seller list. "Through e-commerce, Dandong strawberries, which used to be sold as far as Shenyang supermarkets, can now be sold directly to consumers across the country in 8 hours." Wang Qiu said.

Dandong strawberries have not only become the new favorite of consumers in first- and second-tier cities, but with the popularity of cold chain logistics and the convenience of purchase on platforms such as Pinduoduo, the proportion of consumers in third- and fourth-tier cities and even rural areas is increasing rapidly.

"In order to make users eat better, we recently put a special black tiger shrimp on the shelves. This variety is cooked and served to the table in a festive atmosphere. The relevant person in charge of the domestic aquatic food leader Guolian Aquatic Products said that in addition to core products such as fresh shrimp and shrimp, Guolian Aquatic Products also increased the supply of prefabricated dishes with fish, shrimp and other seafood as the main raw materials during the New Year Festival, and the stock volume was double that of the daily inventory.

According to the data of Pinduoduo Platform, the pre-made dishes such as Jintang sauerkraut fish and crystal shrimp dumplings produced by Guolian Aquatic Products are the annual hot products of the platform. Changes in dining habits brought about by the epidemic have accelerated the popularity of pre-made food consumption. The quality control of supply chain manufacturers and the sales of new e-commerce platforms have made the "simple cooking can be eaten" prepared dishes increasingly become the "New Year's goods" that are highly sought after by young consumers.

In Yongchang County, Jinchang City, Gansu Province, meat and sheep breeding is a pillar industry and a prosperous industry in the local area. These free-range lambs, which "eat hundreds of herbs and travel thousands of miles", are mellow and fragrant, have no smell, and are national geographical indication products.

"Our lamb can be sold from October of that year to March of the following year, but the most critical sales node is the New Year Festival. This month has sold well, and every day is double eleven. Selling badly, that is, killing pigs and slaughtering sheep 'worried' for the New Year, is 'sad' not 'reward'. Zhou Feng, sales director of xiyuan meat joint factory, a local meat and sheep processing leader, said.

In the past, the Yongchang meat and sheep industry has long faced the embarrassment of large quantity but small scale, good quality but no brand, and no good price. In recent years, the blockage point of meat and sheep has gradually been dredged by e-commerce.

Li Guoxiang, a researcher at the Institute of Rural Development of the Chinese Academy of Social Sciences, said in an interview with the 21st Century Business Herald that in the past, there has always been a contradiction between increasing agricultural production and increasing peasants' income. In traditional channels, farmers produce high product quality, but buyers may not be able to give a high price. "It's hard to develop a brand through traditional channels. E-commerce platforms can help agricultural products to build brands, when the brand is done well, the high quality and price of agricultural products can be guaranteed, thereby further promoting the improvement of the quality of agricultural products. The rural market of the future is imaginative. ”

The focus shifted from marketing to research and development

At present, Pinduoduo, which has been established for six years, is experiencing a transformation of high-quality development. In August 2021, Pinduoduo set up a "10 billion agricultural research project" and announced that it would give priority to the profits in the second quarter and the next few quarters into the special project. At the end of September, the "10 billion agricultural research project" was approved by the shareholders' general meeting.

On the road of agriculture, Pinduoduo thought very far from the beginning. As early as 2015, Pinduoduo began to establish a "new farmer" system to guide highly educated talents to return to their hometowns and drive the development of local rural e-commerce. Later, he set up a multi-faceted training class to participate in the formulation, guidance of standardized and unified production, planting and management, and to participate in agricultural production and planting at the source.

At the same time, Pinduoduo has established a "farmland cloud spelling" system, based on the production characteristics of the small farmer economy in poor areas, through big data, cloud computing and distributed artificial intelligence technology, the scattered agricultural industry and the scattered demand for agricultural products are married together in the "cloud", so that agricultural products in remote areas are directly connected to the national market, providing long-term stable orders for poor households, and ultimately benefiting farmers and consumers.

Driven by this model, as of December 1, 2021, the number of agricultural products with sales of more than 100,000 single products on the Pinduoduo platform reached more than 6,000, an increase of 43% year-on-year; the number of agricultural products with single product sales of more than 1 million singles reached more than 50.

In order to allow consumers to enjoy the most affordable good New Year goods, Pinduoduo is directly connected to thousands of agricultural and sideline product industrial belts, such as landmark agricultural products such as Zigui Navel Orange, Honghu Lotus Root, Wuming Wo Citrus and so on. These industrial belt merchants rely on the support of the local government, the industrial chain in the region is perfect, the supply is stable, and they gradually have brand influence in the market competition.

In addition, the scope of annual goods covered by Pinduoduo is also getting wider and wider. Kiwi fruit from New Zealand, peony shrimp from Canada, monarch salmon from New Zealand, Arctic cod from Norway, Ginador oysters from France... From "TiannanhaiBei" to "The End of the World", Pinduoduo has prepared more good goods and sharp goods directly collected by the world for diners to meet the diversified needs of consumers.

The person in charge of the aforementioned Pinduo Goods Festival said that the Spring Festival was originally a major festival with concentrated demand, and the "Farmland Cloud Spelling" further gathered the demand from the time and space dimension, connected to the industrial belt, upgraded from production and marketing docking to "production and consumption docking", which can help high-quality merchants in the industrial belt and national and even global brands to achieve explosive growth in a short period of time, and a large number of affordable and high-quality agricultural and sideline product brands have become the protagonists of the New Year Festival, helping consumers to have a good year.

In this context, the lotus root produced in Honghu City, Hubei Province, is becoming a new explosive product. The loyalty of consumers has also allowed local merchants engaged in the e-commerce sales of Honghu Lotus Root to obtain dividends. Huagui Food Group, which opened its store on Pinduoduo in 2017, currently has 4 online stores on Pinduoduo.

"Sales are growing rapidly, and last year we sold more than 100 million yuan across the network." Yang Fuyuan, general manager of Huagui Food Group, said, "E-commerce platforms such as Pinduoduo have expanded the sales radius of Honghu Lotus Root, and we have opened up many new markets, and our products have been sold to North China, East China, Northwest China and other regions. ”

Honghu Jason Aquatic Products Co., Ltd., which only opened a store on Pinduoduo in 2020, has also developed rapidly, and currently has 4 stores in Pinduoduo. "Our average daily sales on e-commerce platforms such as Pinduoduo are about 5,000 orders, and last year's sales of the whole network reached more than 30 million yuan." Zhang Xiaofeng, founder and general manager of Jason Aquatic Products, said, "Honghu Lotus Root is selling very hot and is in a state of short supply. ”

At present, in addition to selling fresh lotus root, Huagui Food Group has also developed vacuum-packed fresh lotus root, bagged lotus soup, bagged bubble lotus belt, wild lotus juice, lotus leaf tea, lotus leaf coffee and other products. It can be seen that even in the single category of "lotus root", the Pinduoduo platform is sparing no effort to tap the potential of the industrial chain, so as to form its own unique competitiveness by doing a deep job.

"Hit the workers" become "new farmers"

It is worth noting that at present, the rural Internet penetration rate in the mainland has further increased, and the gap between urban and rural areas is narrowing. The 48th Statistical Report on the Development of China's Internet Network pointed out that in the first half of 2021, the urban and rural circulation system of online retail was gradually opened, and the consumption potential of the rural market was effectively released, and the national rural online retail sales reached 954.93 billion yuan, an increase of 21.6% year-on-year, of which the online retail sales of physical goods were 866.31 billion yuan, an increase of 21.0% year-on-year.

This also shows that the "Internet +" agricultural products out of the village into the city project has seen results, the new Internet model represented by live e-commerce to play the ability to carry goods, has become a new path to lead the network sales of agricultural products.

Pinduoduo's all-out bet on agriculture can be described as a trend, which not only coincides with the national rural revitalization policy and the background of the development of agricultural modernization, but also continuously taps the commercial potential of the sinking market, opens up new growth space, and creates social value.

In Hengzhou, Guangxi, the "hometown of China's sweet corn", farmers are rushing to harvest the "New Year goods" that will be sent to all parts of the country through Pinduoduo - sweet corn, and the month before the Spring Festival is an important sales period for sweet corn, a pillar industry in the local area.

11 years ago, Qin Zongnuan, a young man in Hengzhou, quit his job in Guangdong, returned to his hometown to work as a farmer, and planted sweet corn. During this period, he led the establishment of Xinyuan Fruits and Vegetables, and established a whole chain of industries including bases, deep processing, silage processing, etc. in the mode of "cooperative + company + base + farmer".

When mobile phones become "new agricultural tools" and live broadcasting becomes "new agricultural work", "new farmers" like Qin Zongnuan are no longer satisfied with only being the "corn king" hidden in the supply chain. Since 2020, Pinduoduo has promoted the acceleration of large-scale, standardized and refined production of primary agricultural products, and they have also followed the trend, through the direct hair of the place of origin, so that the fresh corn in the hometown is directly connected to thousands of households, and the order volume has reached nearly 100,000 singles / month.

In addition to fresh corn, local new farmers have also "hollowed out their minds", "eaten dry and squeezed out" corn, and even developed ecological agriculture - first sell corn shoots, then sell corn buds, corn flowers for cold mix, corn stalks to feed cattle, cow dung to grow mushrooms, fungus bran back to the field to plant sweet corn.

Around the corn industry, Hengzhou is currently forming a new industrial division of labor: young people in their twenties and thirties do e-commerce; middle-aged people in their forties and fifties engage in planting, processing, etc.; 60- and 70-year-old people play a residual heat and are experts in sorting and packaging. Their daily salary is as low as 150 yuan, the highest is 300 yuan, and they can even earn more than 10,000 yuan a month in the peak season.

"In the past, young people squeezed their heads to go to Guangdong to work, and the operation was as fierce as a tiger, and the salary was four thousand and five. Nowadays, after the hometown agricultural products are getting more and more 'money', everyone has gone home, done e-commerce, engaged in planting, and even carried forward the Hengzhou sweet corn to Guangdong. In the view of Peng Kai, director of the Hengzhou Institute of Agricultural Sciences, relying on pillar industries such as sweet corn and e-commerce, more and more young people in Hengzhou choose to end their lives separated from their relatives and embark on the road home.

It is foreseeable that with the development of the "three rural areas" cause, more and more talents and resources will be invested in the vast rural areas of China. In this process, the construction of a new peasant system of self-hematopoiesis has become the key to rural revitalization. At present, Pinduoduo has directly driven more than 100,000 new farmers across the country to return to their hometowns for employment, and will continue to train another 100,000 new farmers in the next 5 years.

Li Xiaolin, chairman of the China E-commerce Poverty Alleviation Alliance, said that in the rural revitalization work, including e-commerce to help farmers, a large number of talents who "understand agriculture, love the countryside and love farmers" are needed, give full play to their wisdom and resources, take root in the countryside, serve farmers, and build more regional brands for rural agricultural development on this basis.

(Intern Wang Yuqi also contributed to this article)

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