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E-commerce is targeting the rural market
Category: Company news
Date: 2015-05-30
Click: 1084
Author: 佚名
  At 7:30 a.m., pang weidong starts his delivery journey at an alibaba group distribution center in the northeast China plain. His minivan drove over rough roads, delivering goods such as toilet paper...


  At 7:30 a.m., pang weidong starts his delivery journey at an alibaba group distribution center in the northeast China plain. His minivan drove over rough roads, delivering goods such as toilet paper and weight lifting equipment.

Mr. Pang, 35, said it took about nine hours to deliver about 200 packages a day because he had to keep the speed below 40 miles an hour to avoid accidents or damage to goods and, in some cases, poultry and livestock on the road.

Mr. Pang is one of a number of drivers employed by alibaba's logistics partners and its main competitor, jd.com, to deliver goods in villages and towns across China. The two companies together account for 80 per cent of China's $440bn retail e-commerce market, which relies heavily on sales to urban residents. They all hope to reach 100,000 villages by the end of this decade.

Investors are worried that slowing economic growth and stock market turmoil could depress consumer spending. In the three months to June, alibaba's revenue grew at its slowest pace in more than three years. Jd.com executives said earlier in August they expected sales growth to slow later this year.

But China's countryside is promising. Although some 600m rural residents are generally poorer, their incomes are growing faster than those of urban residents.

The number of e-commerce customers in rural China is only a third of those in cities, but their status is rising rapidly. According to the China Internet network information center, a government research institute, 77 million people in rural areas had shopping online last year, up 41 percent from 17 percent in urban areas.

Wang xiaoxing, an e-commerce analyst at research firm analysys international, said that online shopping in rural areas is still smaller than in cities, so there is a huge space to explore and a huge market to compete for.

Alibaba, China's largest e-commerce company, plans to spend 10 billion yuan over the next three to five years to build 1,000 county-level operation centers and 100,000 village-level service stations. As of June, the company had 63 county-level distribution centers and 1,803 village-level service stations.

Beijing-based jd.com has adopted a different rural distribution strategy. The company has its own network of 166 regional warehouses and thousands of smaller local distribution stations. In remote areas, jingdong is working with third-party logistics companies and paying "brand promoters" who receive packages and deliver them to customers.

Three dragon electronics (dongguan the godson photoelectric co., LTD., sichuan three dragon electronics co., LTD.) was established in August 2005, is a dedicated research and development, manufacturing, sales in the integration of modern private high-tech enterprises, the godson photoelectric 11 Tian Hengtai road is located in dongguan changan town, the company a total investment of RMB 50 million, the factory covers an area of about 30000 square meters, existing staff 3000 people, the company has injection molding department, SMT division, FPC division, back light group, the irrigation crystal group, TFT module division, SIN module division, The company adheres to and adheres to the principle of "providing high-quality products for customers and providing growth opportunities for employees; Operate in good faith and share interests; Customer first, service by heart.

The company has a brand new factory, equipped with clean clean and clean clean dustless workshop, equipped with central air conditioning and central acoustics; There are dining halls, convenience stores, basketball courts, table tennis and other entertainment facilities in the living area. The dormitory is equipped with air conditioning and water heater, which provides the greatest convenience for employees' life.

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