"Wall Street daily" network edition and Bloomberg recently wrote that, along with the Chinese City e-commerce market saturation, Alibaba and Jingdong of the two major electricity supplier giants began to turn their attention to the rural market, hopes to open up the market to achieve its business continued to grow. The article also pointed out that the two companies in recent years both invested heavily in the layout of the rural market, and gradually improve the logistics network and related infrastructure, while leveraging the national policy, the purchasing power to attract increasingly powerful rural consumer groups.
in the northeast of China Mingshui County Alibaba distribution center, the staff are handling packages
in the Northeast China Plain China a Alibaba distribution center, Pang Weidong (transliteration, Pang Weidong) at 7:30 every morning from there, driving a small truck on the rough road, transporting toilet paper, lifting equipment and other goods. Pang Wei day east route is equivalent to Interstate 95 in New York to Boston distance. The 35 year old Pang Weidong said, he every day to send about 200 parcels in 9 hours, in order to avoid the accident or damage to the goods, sometimes along the way poultry and sheep suddenly appeared on the road, have to keep the speed of 40 miles per hour in the following. Shareholder pressure is growing
Alibaba’s logistics partners and its largest competitor, Jingdong, has built a vast army of couriers, who are responsible for sending goods to rural areas across the country, and Pang Weidong is one of them. In the retail e-commerce market China $440 billion, Alibaba and Jingdong with a share of 80%, but before this, China e-commerce market sales mainly depends on the city residents’ consumption. Alibaba and Jingdong’s goal is in 2020 before the logistics network covering 100 thousand villages.
Alibaba and Jingdong actively explore the efforts of the rural market, coincides with the two companies are facing increasing pressure on shareholders. At present, the world’s second largest economy as the online shopping market is maturing, the growth rate of new users began to slow down. In this context, the shareholders asked Jingdong and Alibaba to find new business growth point. Alibaba group CEO Zhang Yong said earlier this month, thanks to the user to repeat the purchase and a variety of products, he believes that in the long run Alibaba will continue to grow.
investors are worried that China’s economic slowdown and stock market volatility may inhibit consumer spending. In June of this year to the second quarter, Alibaba revenue growth rate is more than three years minimum, while the Jingdong executives earlier this month also said they expected the second half of this year sales will only modestly. Hope for future growth
, however, China’s rural areas are the hope of future growth. The number of rural residents in China is about 600 million, and the rate of income growth is higher than that of urban residents, even though they are generally poorer. In 2013, the annual per capita income of rural residents in China was RMB 8896>