Changsha’s Internet members.
The Internet of agricultural products has been in the circulation for a long time. Compared with the best fresh e-commerce for end-users, such as daily fresh, original life, and good things, everyone is interested in B2B e-commerce for agricultural products such as enterprises and merchants. The recognition of the platform is relatively low, but such enterprises are in a much larger market for agricultural products circulation. According to incomplete statistics, China’s agricultural product circulation market is about 5 trillion yuan.
In the traditional agricultural product circulation, there are many pain points such as numerous links, serious losses, and lags in the market. Whether it is for the end consumer market or the practitioners of the circulation, such circulation patterns are too inefficient and expensive, and the chain links. Restructuring is imperative. In addition to the escalation of the supply chain in the market environment, policies such as rural revitalization and precise poverty alleviation have continued to promote the transformation of agricultural organization, production methods and circulation methods, opening up a “green channel” for Internet + agriculture.
In this chain, some head Internet entrepreneurship projects have been born. Close to the sales and wholesale and retail outlets, there are American cuisine and Song Xiaocai. Among them, Song Xiaocai is the main vegetable, Mei Cai.com has already touched the 2C business of community group purchase, and in the comprehensive agricultural product trading platform closer to the production end, in addition to an acre field, there are Huinong.com to be introduced today.
Huonong.com was founded in Changsha in 2013. In the early days, it was an agricultural product trading information platform, which was connected to the supply and procurement terminals. The supply side was mainly composed of three groups: farmers, agencies, and agricultural cooperative organizations. The procurement side was The distribution channels of wholesalers, supermarkets, e-commerce platforms and stores in the agricultural products trading market are mainly. The platform’s trading categories cover more than 20,000 kinds of conventional agricultural products such as fruits and vegetables, livestock and poultry, eggs and aquatic products. The users cover 2,818 county-level administrative regions across the country, and more than 140,000 agricultural product market information is updated every day. Huinong.com launched the payment function in 2016, and is gradually forming a closed loop of online trading of agricultural products, which has evolved from an information platform to an e-commerce platform.
At the same time, Huinong.com has already landed “e-commerce service center” in more than 20 counties, and carried out services such as standardization of agricultural products in the producing areas, supply chain upgrading, marketing of agricultural products, and operation of e-commerce, etc., to make long-term development of the agricultural industry Internet platform. layout.
From the perspective of business structure, the development path of Huinong.com’s planning is to create a strong supply chain platform through “control circulation + control of production areas” and become a “big middleman” in the chain.
The entry point for controlling circulation is to control traffic, which is also the starting point of Huinong.com. In order to increase the traffic, the platform has not received the membership fee and is based onThe needs of buyers and sellers form a product structure consisting of trading, market, agricultural technology, community, optimization, and sales. From January 2017 to September 2019, the daily activity of the platform increased by 6 times, the monthly activity increased by 7 times, and the number of purchase enquiries increased by more than 10 times.
Huonong.com co-founder Li Junjie said that the current agricultural products industry’s overall transaction is less linear and the basic services are not perfect. Therefore, suppliers are more concerned about the number of enquiries that the platform can bring. The conversion rate is about 20%.
But in addition to the flow, circulation also includes multiple stages of agricultural product classification, warehousing and logistics, and wants to control circulation and truly realize the e-commerce of agricultural products. In Li Junjie’s view, the bottleneck lies in the production end, agricultural products. The standardization and improvement of the infrastructure of the production area are two issues that must be solved. It is not difficult to understand why Huinong.com will launch a “county e-commerce service center” to control the place of production.
Under the policy background of e-commerce and poverty alleviation, the development of county-level e-commerce is just a government need. China has a vast territory, and there are more than 2,000 county-level administrative units. The industrial base of each county is very different. It is unrealistic to rely solely on the strength of enterprises to solve the problems at the production end. Huinong.com has chosen to cooperate with the county government in the form of project system. The government will fund the construction of the e-commerce system for county agricultural products and provide customized solutions. The business content covers the following:
At present, Hui Nongwang’s e-commerce service center is mainly concentrated in the central and northwestern regions, and is also the main source of revenue for Huinong. According to Li Junjie, this proportion will follow The platform’s large-scale commercial realization is reduced.
With the county e-commerce service center, Huinong.com can obtain highly viscous users at a lower cost. In February this year, the retention rate of users in the three months has more than doubled compared with the same period. At the same time, this can help The farm network accurately grasps the resources and information of the place of origin, promotes the standardization of the production and circulation of agricultural products together with the local government and farmers, and promotes the improvement of local infrastructure, such as processing plants, packaging plants, and warehousing logistics services.
No matter whether it is the cultivation and accumulation of the users of the circulation-side Huinong network platform, or the county-level e-commerce service that is deeply developed at the production end, Huinong.com has no doubt directly entered a difficult segment in the large-scale agricultural Internet track. . However, Huinong.com has a detailed layout on how to establish industry influence.
Li Junjie believes that long implementation period and difficulty are common problems faced by agricultural entrepreneurs, usually “small and smallThe segment of the US is more favored by entrepreneurs and the industry, but the comprehensive trading platform will have more imagination in the next 3-5 years. In terms of the current development stage, the breakthrough of Huinong.com will be solved on the one hand. The standardization and modularization of the scheme shortens the implementation cycle. On the other hand, it simultaneously creates vertical items and boutiques, and quickly gathers the brand effect of the platform.
Jingzhou Yangmei is one of the successful cases created by Huinong. Jingzhou County of Hunan Province is one of the main producing areas of Chinese bayberry. From 2016 to 2019, Huinong.com has hosted the Jingzhou Yangmei Festival for 4 consecutive years. It has been built from Yangmei’s standardized supply chain, e-commerce training, online marketing promotion, production and marketing docking. And brand marketing and other sectors to promote the construction of Jingzhou Yangmei industry.
Through the “online platform + offline service” model, in the case of Jingzhou Yangmei, from the sales, sales, sales unit price, sales radius to logistics costs, the first four have been greatly improved, and Logistics costs have fallen by more than half, and even taking into account the reduction in the total cost of social logistics, this is still a considerable achievement.
The reason for choosing such an operation model is that Huinong.com believes that in the traditional agricultural product circulation, most of the problems lie in the origin, the standardization of the production resources and the informatization are the scarcity of the market, through the ” Controlling circulation + controlling the origin of the two-pronged approach, it is easier to shake the demand side.
How to realize it, it is still a must-answer in front of Hui Nong. Li Junjie said that although Huinong.com has not yet carried out large-scale commercial realisation, through the control of “circulation + place of origin”, transaction service fees, advertising/members/value-added services, self-operated business spreads/service fees, project services The fee will be the main income component of Hui Nong. In the future, the total revenue of this year will be close to 100 million yuan. Li Junjie expects Huinong.com to achieve profitability next year.
For agriculture with a long cycle and slow return, Changsha in the central region also gave Huinong.com a lower trial and error cost, and Changsha’s Internet entrepreneurial atmosphere is not behind people, and it is preferred. The entrepreneurial projects that are well-known for these investment institutions are all here.
At the end of the introduction team, Huinong.com team has been stable and deeply cultivated in the agricultural field for many years. Chairman Jiang Shi provided strong financial and human support for the establishment and launch of Huinong. Li Junjie joined Huinong.com in 2016. He has many years of experience in the B2B field. He was responsible for Alibaba’s B2B business and many operational product lines and public comment group purchase operations.