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Onlookers: Kesheng E-commerce in the eye of media

Visits: Date:Aug 10,2015

In 2015, “Agricultural Materials’ E-commerce” became a hot topic in the field of agricultural materials. Many enterprises of agricultural materials caught the unlimited E-commerce business opportunities and they started their E-commerce businesses one after another. Kesheng Group is also a member of E-commerce. Today, let us see what is Kesheng E-commerce in the eye of media in the field of agricultural materials.

Southern Rural Newspapers  Who is the Alibaba in the field of agricultural materials? As far as E-commerce made by enterprises of agricultural materials is concerned, we can see that they have different development models according to their own features: small enterprises want to take the free ride of mature electric business platforms while big companies want to build their own Internet channels on the basis of that. Some industry associations or media even want to attract a batch of enterprises to do professional E-commerce platforms for agricultural materials. As a pioneer of E-commerce of agricultural materials, Kesheng Group uses website platforms, such as Taobao, Alibaba and Baidu, to sell their pesticides online. Though Kesheng Group also takes the free ride of E-commerce, it also pays attention to its sales of offline channels. Its on-line sales can make up its offline blanks and its online sales can promote its offline services. At the same time, online sales can also enhance the popularity and reputation of products and improve the market shares of Kesheng pesticides in the same products. In order to avoid conflicts occurred between offline channels and online channels, online sales of Kesheng Group are primarily targeted to the blank market outside traditional channels.

This pattern has its own superiority. For example, it can improve traditional marketing channels, including the credit account channel, the lazy-type channel and the natural-style channel, can reduce the lengthy process from the time when pesticides are delivered outside to the time when they are sprayed to farms by farmers and can decrease risks of logistics delay.

There are many pesticide enterprises like Kesheng Group owning their own stores on Taobao. They all face the same problem, which means that there is a gap between consumer groups of the platform and consumer groups required by agricultural materials’ enterprises. Although Taobao has hundreds of millions of customers, its main consumer groups are urban citizens because real farmer do not use Taobao.

AgriGoods Herald: There are still great potentials of traditional E-commerce channels. On the second session of pesticide industry’s economic operation analysis meeting hosted by China Pesticide Industry Association, the guests all agreed that with the access of Jingdong, Alibaba and other E-commerce magnates into the agrochemical market, the E-commerce of agricultural materials would obviously affect traditional channels. However, there is no need of panic, advantages of pesticide enterprises and dealers are not that obvious. We shall hang on to key points of technology services with the breakthrough point of differentiated products. General Manager WU Chengwei of Kesheng Group Limited Liability Company said that in the future, resources will be integrated and shared and there will be more competitions, cooperation and exchange. Enterprises can use the electronic commerce platform to teach farmers the dosage preparation techniques and the spray techniques of pesticides. If you can seize these two points, you will win the market. Kesheng Group set up the special Dragonfly Agricultural Service Platform, which is a professional and on-line agricultural service platform, to provide “the platform, the science and technology, the data and the finance.

China Pesticide Network  Agricultural materials’ enterprises look forward to the gorgeous transformation of “three new" values. Chairman Chong-Yan WU said that E-commerce of Kesheng Group opened up its own free space and had made a lot of E-commerce achievements. Facing the sustainable accelerated reform process of Chinese Agriculture Chemistry Industry, Kesheng Group listed the E-commerce into the medium and long-term planning and expansion platform for the transformation and upgrading of the group. The construction team aimed to “link online and offline sales, use on-line sales to feed offline sales and use on-line sales to promote offline sales” so as to further expand Internet marketing channels for Kesheng agrochemical products and to promote Kesheng products’ market shares.

Chinese Agricultural Materials “Try” the E-commerce; pesticide enterprises intend to adopt the form of “electric-shock” marketing. The increasingly-mature E-commerce platform under the rapid development of Internet has an effect on traditional pesticide sales patterns. E-commerce uses network-marketing pattern to exhibit and propagate products, trying to change off-line trading patterns to online transaction patterns. This can not only reduce the promotion cost but also improve enterprises’ popularity quickly. The e-commerce marketing pattern in the pesticide industry is becoming a new trend of agriculture sales system. Chairman Chong-Yan WU of Jiangsu Kesheng Group Limited Liability Company told reporters of Chinese Agricultural Materials that in order to further understand the pesticide e-commerce and to feel the necessity and urgency of pesticide marketing transformation, Kesheng Group made its two-year E-commerce boosting plan at the beginning of this year, which was to steadily implement the pesticide E-commerce policy of Kesheng Group: “Link online and offline sales, use on-line sales to feed offline sales and use on-line sales to promote offline sales”. “For a long time, resources of famous-brand pesticides have been wasted. Products of Kesheng Group are hard to be publicized to ordinary peasant households. Even though peasants recognize pesticides of Kesheng Group, it is hard for them to use scattered but efficient pesticides of Kesheng Group. What’s worse, manufacturers’ products are overstocked and goods of dealers are returned to the factory but farmers yearn for genuine pesticides of Kesheng Group. Such contradictions need to be carefully studied and solved by us enterprises. E-commerce can not only help return evident benefits of the factory cost but also solve thousands of peasants’ difficult “hand-shaking” problem of genuine pesticides of famous brands”. Chong-Yan WU said that the E-commerce of Kesheng Group could fully follow the marketization rule. They encouraged qualified employees to take part in the e-commerce, to open online shops, to extend the sales market and to grasp orders so as to improve the competitive power of Kesheng pesticides within the industry, to expand market shares and to promote its market shares. According to the reality of “intersection” between e-commerce operations of pesticides and their traditional marketing, Kesheng Group settled the orientation of its target customers, which meant that the blank market shall have the priority, special crops shall have the priority, social service organizations and large farms shall also have the priority. In terms of competition regions, a lot of measures will been taken, including writing down target sales of traditional channels, the differentiation packaging, the locking of terminal users’ identity and the precise logistics and dispensing solution.

Southern Rural Newspaper  Enterprises of agricultural materials joint hands with large farm households for future developments. With the rapid development of T-mall, Jingdong and other e-commerce enterprises in each industry, some manufacturing enterprises in the field of agricultural materials also began to build their E-commerce platforms. Jiangsu Kesheng Group selected to use Taobao to open their own direct-sale stores, which could save time in building their own platforms. Jiangsu Kesheng Group tends to use E-commerce channels to make up the blank of offline channels”. CUI Ya, a Deputy Secretary of the party of Jiangsu Kesheng Group Limited Liability Company (hereinafter referred to as "Jiangsu Kesheng Group") said “our pesticide e-commerce policy is to ‘link online and offline sales, use on-line sales to feed offline sales and use on-line sales to promote offline sales’. Direct-sale stores of Jiangsu Kesheng Group were started in Taobao in March this year. Their E-commerce businesses were highly emphasized by senior leaders of the company. The chairman of Kesheng Group took the command of the E-commerce team personally. At present, there are all together 10 full-time and part-time employees of E-commerce business. They belong to the VIP Customer business division for expanding new businesses in the company.

Despite external world’s cognition and evaluation of E-commerce business of Kesheng Group, Kesheng E-commerce has stepped from the tentative period to the practice stage and partners of E-commerce teams of Kesheng Group are still working hard. At present, Kesheng Group built its own “China National Agricultural Online Shopping” platform and established a new agriculture-serving open platform--“Dragonfly Agricultural Services”. We will see whether Kesheng Group can carve a career in the “blue ocean” of agricultural materials with the O2O agriculture full-service E-commerce platform it built in full strength.
 

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