context: State efforts to increase internet penetration in villages are reaping dividends as more rural residents shop online, use electronic payment platforms like Alipay and Wechat Wallet, and sell farm products directly to urban consumers. This rapidly developing market may be constrained somewhat in coming months, however, with a push to introduce more standards for ag product e-commerce.
Rapid gains in rural internet access are driving development of the agriculture sector, according to officials from Ministry of Agriculture and Rural Affairs (MARA). State statistics show that 35.4 percent of rural residents, or a total of 209 million people have internet access as of end 2017. Of these, 47.1 percent have used electronic payment platforms to purchase goods both online and offline.
Tang Ke 唐珂 MARA Market and Economic Information Department director says expanded internet access has the potential to improve management of the agriculture supply chain, boost efficient use of land, labour and other resources, and help raise farm incomes. MARA has helped establish 169,000 rural information cooperatives via pilots and demonstration projects, he says, driving e-commerce transactions valued at C¥16.7bn. The program will be expanded to cover half of all provinces by end 2018, he says.
Wei Baigang 魏百刚 MARA Development and Planning Department director says e-commerce sales of agricultural products have grown 38.8 percent y-o-y in Q1 2018, with retail sales revenue totalling C¥45.27bn. Marketing activities around the Lunar New Year holiday drove high revenues, he suggests.