Five Year Poverty Alleviation Sample Of Pinduoduo: Science And Technology Enabling Agriculture To Form "The Hope Of The Whole Village"

With the gradual improvement of Internet infrastructure construction, e-commerce has become an important way to sell agricultural products. The combination of e-commerce and the rise of agricultural products will not only enable more consumers and "new farmers" to share the dividends brought by science and technology enabled agriculture, but also increasingly become the backbone force from poverty alleviation to rural revitalization.

"The award of the" Organization Innovation Award "for national poverty alleviation is a great inspiration to all the people who work hard in poverty, and it is also a heavy responsibility. As a new e-commerce platform based on agricultural products, pinduoduo will continue to abide by its duty of helping the poor and helping agriculture, and make due contributions to the decisive battle against poverty and Rural Revitalization. " Chen Lei, then CEO of pinduoduo, said at the 2020 national poverty alleviation award commendation meeting.

Since its establishment for five years, the turnover of agricultural products has maintained a high-speed growth of more than 100% annually. As an upward platform for agricultural products, pinduoduo has directly connected more than 12 million agricultural producers by the end of 2019, relying on such technological innovation systems as "farmland cloud spelling", and accumulated more than one million people with poverty.

    In the process of participating in poverty alleviation and helping agriculture, pinduoduo combined with the development of China's agriculture, combined with big data, cloud computing and distributed artificial intelligence technology, put the scattered agricultural production capacity and the demand of agricultural products together in the "cloud". Based on the pioneering "cloud farming land" system, the agricultural products in poverty-stricken areas have broken through the traditional circulation mode It is directly connected to the national market.

Driven by the incremental market demand of "farmland cloud competition" system, agriculture has become a leading industry. In the whole year of 2019, there are 360000 e-commerce entities from national poverty-stricken counties (including areas that have been removed in 2018 and 2019), including 157 000 e-commerce entities in "three districts and three states", with an annual sales volume of 4.8 billion yuan. There are more than 12 million agricultural producers directly connected to pinduoduo platform, and more than one million people have brought poverty.

"Agriculture is one of the most populous industries. From its establishment to serving nearly 700 million users nationwide, pinduoduo has been inseparable from the guidance of the party and the state's policies and guidelines on agriculture, rural areas and farmers, and the development of China's agriculture, rural areas and farmers. " Chen Lei revealed that in the future, pinduoduo will further invest in the technology and business of various links in the agricultural value chain, accelerate the penetration of online retail of agricultural products, and create more value for farmers and consumers.

In yufuyuan warehouse in Yidu, warehouse management personnel are sorting and packing oranges. Materials and pictures

Reshaping the agricultural industry chain with the mode of "combination"

According to the relevant data of the Research Institute of the Ministry of Commerce, the scale of China's rural e-commerce market will reach 1686 billion yuan in 2020, and the average annual compound growth rate of rural e-commerce market is expected to be about 38.9% in the next five years. Under the new economic normal, China's traditional agricultural industry chain is facing multiple challenges. Due to the long industrial chain, the traditional business model mainly operated by small farmers can not achieve accurate docking between producers and consumers, which easily leads to distorted information flow and high transaction costs.

"Most of China's agricultural production areas, especially the poor areas, have complex geographical conditions and can only adopt the" small-scale peasant "model. These producing areas are far and wide, and the maturity period of agricultural products is relatively short. How to accurately match the production and demand, and form a collection effect in time and space, so as to help poor areas form a long-term and stable production and marketing mechanism, is the direction pinduoduo has been striving for. " Dada, co-founder of pinduoduo, said.

Early in the early days of pinduoduo's establishment, agricultural products were the core category of the platform. The team found that the mode of "pinduoduo" could gather massive demand in a short period of time and quickly digest large quantities of agricultural products in the current season, which provided a new answer for China's agriculture to break through the "small and scattered" decentralization constraints.

Over the past few years, pinduoduo has made great efforts to tilt resources and technology, and has continued to improve the "agricultural products" mode. Dada further introduced that pinduoduo platform innovated and created a "central processing system for agricultural products", which input the information of major production areas, including geographical location, characteristic products, maturity cycle, etc., and through system calculation, all kinds of agricultural products will be matched to consumers in the mature period.

It is based on the "agricultural products" mode, pinduoduo innovates and creates a "central processing system of agricultural products", which integrates a fast channel to 418.5 million users for scattered agricultural products. Through this channel, Turpan Hami melons can reach consumers within 48 hours from the fields, which is cheaper than the wholesale market. The once unsalable garlic in Zhongmu, Henan Province, was packaged and sold to Beijing at a price of only a quarter of that of supermarkets. The platform connects the farmland in poverty-stricken counties, office buildings and residential areas in cities, and establishes a set of sustainable poverty alleviation and agricultural assistance mechanism.

Tsinghua University's "new e-commerce reshaping China's agricultural industry chain Development Research Report" shows that in recent years, the new e-commerce platform represented by pinduoduo has accelerated the practice in the field of agricultural products uplink, and is driving the reconstruction of the traditional agricultural system with low efficiency, high consumption and high cost, and promotes the establishment and development of modern production mechanism of agricultural products by catalyzing the development of "cloud agriculture".

New e-commerce is becoming the mainstream force of rural e-commerce development, reshaping agricultural production factors and promoting the integration of industrial chain and value chain. Yin Chengjie, a special researcher of the State Council Counselor's office and former executive vice minister of the Ministry of agriculture, said that the new e-commerce driven upward mode of agricultural products went directly to the upstream of the supply chain and accelerated the commodity circulation efficiency. Compared with the traditional C2C and B2B e-commerce models, this "demand integrated supply chain" model helps stabilize the demand for agricultural products, stabilize the supply, and help farmers reduce their specialty The market competitiveness of regional, characteristic, high-quality and brand agricultural products has been strengthened.

Relying on the innovative "farm produce" mode, pinduoduo solves the common problem of agricultural products passively waiting for search and sales volume unsustainable under the traditional search e-commerce scenario. By actively presenting "direct delivery" high-quality fruits to 400 million consumers, pinduoduo helps "small farmers" connect with the "big market".

In this regard, Hong Tao, director of the Business Economics Research Institute of Beijing University of technology and technology and an expert of the China circulation 30 Forum (G30), said: "the emergence of a new e-commerce model has penetrated the agricultural production areas and markets in two ways, thus further solving the problem of the combination of agricultural production and marketing, and opening a sustainable upward path."

100000 new farmers leading the way

In the process of agricultural products going up, in addition to establishing sales platform, Cultivating Farmers' awareness of e-commerce is "teaching them to fish".

With the rise of new e-commerce platforms such as pinduoduo, "agricultural products up" has entered the stage of explosive growth. In this regard, Guo Pei, President of the smart E-Commerce Research Institute of Agricultural University of China, pointed out that "the rise of new e-commerce is too fast, and the demand for talents is growing too fast. However, the training system and trainees' awareness on the supply side have not been changed in time, which has expanded the talent gap of China's agricultural products upstream e-commerce, and has gradually become an important bottleneck restricting the development of rural e-commerce in China."

How to fully cultivate e-commerce leaders to become rich, to ensure the docking of production and marketing, so that farmers' commodities can effectively reach consumers, has become the core issue of agricultural products uplink. By the end of 2017, pinduoduo has fully implemented the strategy of "talent localization, industry localization and interest localization", and through "Duoduo University" and "new farmer return system", it has driven capable young people, especially those with higher education, to return home and start businesses. Through the complete system of "cultivating rich leaders + exploring the application of science and technology to help the poor + innovating the products for poverty alleviation", the poverty alleviation model can be scaled and sustainable.

In Yulin, Guangxi, known as the "hometown of hundred fragrant fruits", Pang Zhiyu, the seller of passion fruit, has been operating e-commerce for more than three years, and has sold 15 million jin of passion fruit in pinduoduo. With his "getting rich experience", local villagers and sellers have also stepped on the road to wealth.

Born in 1988, Pang Zhiyu is a native of Yulin, Guangxi Province. She has been very familiar with business since she was a child. When he grew up, he worked abroad and opened a shop. In 2016, he tried to go back to his hometown to do e-commerce and sell passion fruit.

Pang Zhiyu and several brothers put together 20000 yuan. "At that time, 10000 yuan was used as deposit for opening a shop. More than 5000 yuan was used to buy a second-hand van. The rest of the money was used to collect fruit and deliver goods from village to door. Every sum of money was spent on the blade."

The name of the shop is very simple, it is called "Yulin baixiangguo". "We don't care how to name it, so we want to open a shop and start selling, or we don't even have money for replenishment." Pang Zhiyu said.

The sales growth rate of pinduoduo platform has greatly exceeded Pang Zhiyu's expectation. At the beginning of the store, he had about 200-300 orders a day. Soon, the daily order quantity exceeded 1000 orders. "Yulin baixiangguo" shop started from scratch, and has been doing a lot. Now, the number of collectible shops has exceeded 400000, the daily order volume has stabilized at more than 4000, and the total sales volume has exceeded 70 million yuan.

The more passion fruit is sold, the more people come to learn from it. Pang Zhiyu does not reserve it, and generously shares her experience in opening a shop on pinduoduo.

"Pinduoduo's" group style "shopping mode enables orders to be quickly focused among people with the same demand, while direct orders and payment via wechat greatly simplifies the entire shopping process." Pang Zhiyu further gave an example: "for example, my mother bought passion fruit and found it delicious. She thought that my aunt also liked to eat it. So she sent a link on wechat. She could buy it directly through wechat. It was very convenient for her to pass it on from mouth to mouth."

Pang also analyzed the people who bought passion fruit. At present, customers are mainly concentrated in Guangdong, Beijing, Sichuan and Northeast China. "60% of the new customers will buy two catties of passion fruit first. After eating these two catties, the repurchase rate is very high. When they buy again, they will choose 5 kg."

Pang Zhiyu's customer source analysis shows that pinduoduo has opened up a new market for "agricultural products going up".

Yang Tiancai, from Pujiang County, Sichuan Province, is a typical representative of pinduoduo's localization strategy. Yang Tiancai, who was born in 1994, began to atrophy his leg muscles at the age of 6. He left school on the second day of junior high school and stayed at home unwilling to go out. He was autistic for seven years. In June 2015, Yang Tiancai got to know another disabled young man, Wu Yun, who was four years older than him. They started a business together.

They focused on pinduoduo, and the sales volume reached 35 million yuan in three months. Since then, in only one year, they have achieved 120 million yuan in sales.

Yang Tiancai and Wu Yun jointly created the disabled brand "let's go together", which has promoted more than 50 disabled people to find jobs and start businesses, and helped more than 500 poor households who have established files and registered cards to get rid of poverty. Yang Tiancai also set up a number of small, fast and flexible "village level" packaging and delivery warehouses in surrounding areas, so that the elderly and women can work nearby and earn more income.

For local new farmers like Yang Tiancai, pinduoduo has set up a special docking mechanism and further allocated special flow support. On this basis, the platform began to promote the development of qualified agricultural production areas from primary agricultural products to agricultural products processing and other extended industrial chain, so as to enhance the added value of agriculture.

Driven by this, a number of modern agricultural industrial parks integrating planting, production, processing and sales have been born in Yunnan, Guizhou, Guangxi, Hainan and other provinces as well as minority autonomous prefectures in the province. More and more more more and secondary industries have begun to realize integrated development in rural areas.

It has long been recognized that talents are the key to pinduoduo, and now a complete "new farmer cultivation plan" has been formed.

"Duoduo University" is the core official training platform of pinduoduo, which is committed to designing highly matching content training system to help businesses grow. Many active businesses on pinduoduo platform receive learning and training through cooperation between universities and colleges.

Up to now, the offline courses of "Duoduo University" have covered 21 provinces, cultivated more than 6700 local students and directly guided more than 3900 stores. Pinduoduo also cooperates with China Agricultural University to carry out talent training. It plans to train 10000 new agricultural and commercial talents in five years, and explore an innovative mode with farmers as the core stakeholders of the industrial chain, so as to effectively help precision poverty alleviation.

"In order to cultivate rural e-commerce talents in a diversified way, pinduoduo even invited academicians and university presidents and other academic elites into the classroom and live room to drive young people of the whole society to care about agriculture, understand agriculture and love agriculture, so as to bury a seed of e-commerce helping agriculture in the hearts of new youth." Dirac, vice president of pinduoduo new agricultural and Rural Research Institute, said, "pinduoduo will invest 50 billion yuan in the next five years to support the new agricultural and rural infrastructure. It will focus on the cultivation of entrepreneurial e-commerce talents and promote" one hundred counties and ten thousand merchants ", bringing real changes to China's agriculture

From poverty alleviation to Rural Revitalization

"Poverty alleviation efforts have been intensified, and poverty-stricken counties have become" rich mining areas. "

2020 is the year of poverty alleviation. The No.1 document of the CPC Central Committee in 2020 continues to focus on agriculture, rural areas and farmers, and puts forward relevant policies such as "effectively developing the rural market and expanding the coverage of e-commerce into rural areas". Rural e-commerce and digital rural construction are still the focus of current agricultural and rural construction.

In terms of promoting consumption poverty alleviation, pinduoduo, in the process of "three districts, three states" poverty alleviation and agricultural products promotion, the new e-commerce uses AI, 5g and Internet of things technologies to promote the endogenous development of rural areas and accelerate the realization of hematopoietic poverty alleviation in poor areas.

Among the original national poverty-stricken counties, "three districts and three prefectures" crossed six provinces and autonomous regions from southern Xinjiang to Northwest Yunnan. At one time, as many as 196 national poverty-stricken counties were under the jurisdiction, which was the "hard bone" in the national poverty alleviation campaign. E-commerce poverty alleviation has become one of the important anti-poverty measures in such areas.

In 2019, pinduoduo will further increase the input of poverty alleviation resources, help consolidate the achievements of poverty alleviation, and establish a long-term mechanism for stable poverty alleviation. By the end of 2019, the number of businesses registered in 832 national poverty-stricken counties of pinduoduo platform had reached 360000, an increase of 158% over the previous year; the total annual orders reached 37.26 billion yuan, an increase of 130% over the previous year, and all the data led the market. The growth rate of agricultural products in "three prefectures and three districts" exceeded 4 times, and the sales volume of 832 national poverty-stricken counties increased 130% year on year.

Chen Xiwen, chairman of the agriculture and Rural Committee of the National People's Congress, once said that the key to rural revitalization is to "retain people". To ensure that farmers' income is not lower than non-agricultural income, "can we make farmers a decent occupation? If we do a good job in agricultural industry, the income is higher than that of migrant workers in cities, the rural areas are attractive."

In order to fully guarantee the income of new farmers and farmers, pinduoduo has invested 8.6 billion marketing resources in 2018, continuously increasing the support for agricultural products in key areas. Driven by this, in 2018, pinduoduo platform produced 13 champion products with a sales volume of 1 million + and more than 600 popular agricultural products with a sales volume of 100000 +, thus hatching a batch of new agricultural products with geographical indications.

According to the report on poverty alleviation and assistance to agriculture of pinduoduo, snow lotus, mango, passion fruit, garlic and ginger are among the best among the "champion agricultural products" with sales volume of more than one million. Previously, non-traditional consumer fruits such as Saussurea involucrata and passion fruit have become the new favorite of consumers in first tier cities such as Beijing, Shanghai, Guangzhou, Shenzhen and so on under the promotion of the "competition for agricultural products" system.

According to the report on upward development of agricultural products in 2019 released by pinduoduo, during the 12 months up to the end of 2019, the number of active buyers of agricultural (by-products) products on pinduoduo platform reached 240 million annually, an increase of 174% over the same period last year, and the repurchase rate exceeded 70%. Among them, the annual number of active buyers of primary agricultural products reached 160 million, an increase of 165% compared with the same period last year, realizing ultra-high consumption stickiness of agricultural products.

"The rise of agricultural products is the long-term core business of the platform." Dada said, "in the future, pinduoduo will continue to increase capital and technology investment, improve the land value and productivity value of the covered production areas, so that farmers directly connected to the platform can benefit and earn money, and help farmers become attractive occupations."