Hongdong Guo, Chair and Professor, Department of Agricultural Economics and Management of Zhejiang University, China. Presented at the ReSAKSS-Asia conference “Agriculture and Rural Transformation in Asia: Past Experiences and Future Opportunities”. An international conference jointly organized by ReSAKSS-Asia, IFPRI, TDRI, and TVSEP project of Leibniz Universit Hannover with support from USAID and Deutsche Forschungsgemeinschaft (DFG) at the Dusit Thani Hotel, Bangkok, Thailand December 12–14, 2017.

1. How to realize agriculture and rural
transformation by E-commerce---ShuYang case
from China
Professor Hongdong Guo
China Academy for Rural Development, Zhejiang University
E-mail: guohongdong@zju.edu.cn

2. Questions to be Discussed
•What is agriculture and rural transformation?
•What is a successful agricultural and rural transformation?
•How to realize agriculture and rural transformation ?

3. Successful agriculture and rural transformation
• Part time farmers turn to professional farmers
• Low value-added products turn to high value-added products
• The short industry chain becomes a long industrial chain
• Not competitive to competitive
• Low income farmers turn to high income farmers
• Scattered production into cluster production
• Poor rural areas become rich and beaufiful areas

4. Challenges facing agriculture and rural
areas in china
• Difficult product sales
• High production cost
• Industry is not competitive
• Hard to make money in
agriculture
• Poor farmers
• Young people are not willing
to specializes in agriculture
• Rural hollowing

5. • In order to solve the problem of agriculture and
rural development Chinese government has taken
many measures, and one of the important measures
is to encourage the use of information technology,
especially e-commerce to develop rural areas.

6. Two main forces driving e-commerce development
Government
( Alibaba,
JD.com,Tencent etc.)
E-commerce
giants

7. Government support – Policies
• “The guidance on the promotion of e-commerce development
in rural areas”.State Council General Office
• “The guidance on the accelerated development of e-commerce
in rural areas”.Chinese Ministry of Commerce
• The project of “ information used in rural areas.”
Department of Agriculture
Source: Aliresearch
Cultivate market
participation
Build up basic
infrastructure
Issue policies and
create service
environment

8. How to realize agriculture and rural
transformation by E-commerce---ShuYang
case from China

9. 沭阳简介[SHU
YANG ]
located in Northern Jiangsu Province
the second most populous county in China
the most populous county in Jiangsu Province
Shuyang is a typical large county of agricultural
population with a large agricultural population
and a poor farmer.

10. favorable location
north latitude 34°
innovation
Poverty gives rise to the desire
for change
tradition
Dynasties of Ming and Qing
Hu's Garden
Shuyang: County of flowers and trees in China

11. 浙江大学中国农村发展研究院
中 国 农 村 电 商 研 究 中 心
the development process of rural
e-commerce in Shuyang
germination:
2000—2006
gallop: 2013—nowbreakthrough:
2007—2012
• low Internet
connectivity
• webpage
• high Internet
connectivity
• the third party e-
commerce platform
• e-shops
• the upgrading of
infrastructure
• new supply networks
• government involvement
• service system
• Taobao Village → Taobao
Town → Taobao Village
Cluster

12. Farmers sell flowers and trees by
E-commerce wide spreadly now

13. 浙江大学中国农村发展研究院
中 国 农 村 电 商 研 究 中 心

14. 8 billion 500 million
yuan e-commerce
business turnover in
2016
33 thousand e-shops 2.7 parcels per second
2016
85million
2015
70million
2017
before
AUG
69million
the number
of parcel
The development of e-
commerce is very fast

15. 三 Part-time farmers become professional farmers

16. 浙江大学中国农村发展研究院
中 国 农 村 电 商 研 究 中 心
Scattered production into
cluster production
1991 2001 2015
3 thouand mu
40 thousand mu
500 thousand mu

17. 二
30 thousands
farmers do
business
洒水壶、保鲜膜
鲜花、干花
花盆、肥料籽种、树苗
盆景、乔木
铁锹、遮阳网
商品种类
一应俱全

21. field
cultivation
nursery stock
horticulture
green
Low value-added products turn to high value-added products
colorful potting

23. 浙江大学中国农村发展研究院
中 国 农 村 电 商 研 究 中 心
R & D breeding cultivation marketing
processing
tourism
original chain extended chain
The industrial upgrading of flowers and garden plants:
extension of industrial chain

24. 浙江大学中国农村发展研究院
中 国 农 村 电 商 研 究 中 心

25. Not competitive to competitive
Shuyang
40%
the total sale of flowers and
garden plants on Taobao
platform

26. 浙江大学中国农村发展研究院
中 国 农 村 电 商 研 究 中 心
More and more local people
get a job
employment
250,000
5000

27. Young people returned and started e-business

28. 浙江大学中国农村发展研究院
中 国 农 村 电 商 研 究 中 心
Happy family

29. 浙江大学中国农村发展研究院
中 国 农 村 电 商 研 究 中 心
Farmers' net income grew rapidly

30. nice car pretty house
Farmers become rich farmers

31. Poor rural areas become rich and beautiful areas

32. charming countryside in Shuyang

33. 浙江大学中国农村发展研究院
中 国 农 村 电 商 研 究 中 心
government / policy
e-commerce
ecosystem
agricluture
farmers
wealthy
farmers
powerful
agriculture
beautiful
contryside
entrepreneurship
innovations
The development mode of Shuyang's rural e-commerce
e-commerce
ecosystem
e-commerce

34. Key factors for the success of
Shuyang Case

35. 浙江大学中国农村发展研究院
中 国 农 村 电 商 研 究 中 心
The first key factors:
farmers' entrepreneurship and innovations

36. 浙江大学中国农村发展研究院
中 国 农 村 电 商 研 究 中 心
industrial
foundation
physical cost
risk cost
learning cost
embeddedness
cost-oriented
locally-oriented
grounded
entrepreneurship
result in
The second key factors: good industrial foundation

37. 浙江大学中国农村发展研究院
中 国 农 村 电 商 研 究 中 心
electronic
commerce
platform
physical cost
risk cost
learning cost
asset-light
cost-oriented
locally-oriented
grounded
entrepreneurship
support
The third key factors: favorable e-commerce platform

38. 浙江大学中国农村发展研究院
中 国 农 村 电 商 研 究 中 心
The third key factors: favorable e-commerce platform

39. 浙江大学中国农村发展研究院
中 国 农 村 电 商 研 究 中 心
low logistics cost → online competition
The fourth key factors: efficient logistics system

40. 浙江大学中国农村发展研究院
中 国 农 村 电 商 研 究 中 心
缺
氛围
人才
网货服务
设施
 try to understand
the present
situation and act
appropriately to
the situation
Last but not least: role of government
Shortages
?????
atmosphere
talentsfacilities
service product

41. the government: improve infrastructure
road and
transportation
network facilities

42.  e-commerce service center
 Free Talent training
 Support in terms of funds, sites,
taxes, etc.
the government: policy support

43. 浙江大学中国农村发展研究院
中 国 农 村 电 商 研 究 中 心
have a sound e-commerce ecosystem
e-businesmen
e-service
provider
platform
firm
training
agency finance
agency
public
sector
e-commerce
association
product
provider
logistics
firm
industry
park
supply
network
e-business' needs
 commodity supply
 loan
 training
 image processing
 brand design
 e-shop
decoration
 marketing
tactics
 data analysis
 Logistics

44. Conclusion and Implication
•E-commerce is an important means to
promote the transformation of agriculture
and rural areas
•The governments of developing countries need
to continue promote the access of the Internet
and the development of e-commerce in rural
areas to create a sound e-commerce
ecosystem for farmers.