Reading Time : 6 Minutes
OF BUILDING THE RURAL E-COMMERCE ECOSYSTEM IN CHINA
Right from the get go, we hopped onto the bus to a local village just 2 hours away from Hang Zhou, called Bai Niu village ( Village of the White Cow, a local Spirit).
So why are we heading over to a village in China? Let this excerpt from China Daily shed some light into this trip.
“Bainiu used to be a small village of less than 1,600 farmers. But in the past seven years, the village has become a hotspot for e-commerce startups, and it is now one of the famous “Taobao Villages” in China.”
So Alibaba has been growing their Tao Bao villages really fast across China, enabling e-commerce into so many rural communities and bringing them up speed with the digital revolution.
We got to understand since the inception of e-commerce and its massive growth rate in China, the villages surrounding major cities have also apparently become e-commerce powerhouses! Bainiu village for one managed to pull of as a top nuts seller in their region, generating on average 50 Million RMB per year through their sales of specialized hickory nuts. The figures are just absolutely staggering!
It was also crucial for us to understand and know that just by enabling e-commerce in the village or a rural district will never be enough, as for example if a massive sales day was to happen like 11.11, orders could not be handled properly!
That is where the importance of Cai Niao , Alibaba’s logistics platform come into play. Cai Niao enables all courier services across china to sync in 1 single system, enabling highly efficient and optimized deliveries across China even though the logistics companies are different. This enables certain rates of postal deliveries to drop to as low as 3 RMB per delivery due to the efficiency analyzed via the Cai Niao system!
Jack Ma has a vision, that he hope Alibaba would continue on to be a strong company that will last 102 years. To achieve that, they have to start from the core of the economy. Jack Ma has always said, a company that does not solve social problems, will never be a company that will go very far in life. This particuliar social problem that they are solving is what they refer to as Hollow China. Hollow China would mean an economy where all the young generation will be centered towards the city, leaving the old and weak behind villages being poor and jobless.
Therefore by pushing the initiatives of Tao Bao Village, this has enabled and empowered the people within Alibaba to try their best. They know that at the end of the day, they are not only doing this for work, but for the betterment of everyone’s lives and the country.
Check out what happened during the other days in my trip!