Hubei farmers get boost from e-commerce
Zhu Guangquan, 41, slumped into his chair after speaking before the camera for about two hours promoting Hubei province’s agricultural products through livestreaming. He is better known as an anchor for China Central Television’s news shows.
The nonprofit event, co-hosted by top-tier livestreaming e-commerce influencer Li Jiaqi on Taobao Live and a CCTV app on Monday, received more than 127 million views and sold Hubei products valued over 40 million yuan ($5.67 million). The topic garnered about 700 million views on Sina Weibo.
Mushrooms, lotus root, tea, duck necks and rice wine are just a sampling of the 16 products that were nearly sold out within seconds after being introduced by the two hosts.
Since late March, multiple e-commerce and media platforms have launched a nationwide campaign to sell overstocked agricultural and aquacultural products from Hubei caused by the over twomonth shutdown of transportation in the region and the suspension of business activity. The goal is to increase farmers’ incomes and lift the regional economy.
Phrases began to trend online such as “Though I didn’t risk my life to help Hubei, at least I can share the bill for it” and “I’d like to gain another 1.5-kilograms for Hubei.” By March 25, 500,000 metric tons of overstocked vegetables in Hubei were sold. The inventory of eggs and fish were decreased from 90,000 to 8,700 tons and from 860,000 to 210,000 tons, respectively, thanks to the promotional campaign, according to the local government.
It showed a desire to help people in need and get through difficult times together, as well as a willingness to engage in consumption for good reasons, experts said.
Zhang Qingqing, 37, a media employee in Beijing, bought lotus roots via online group discounter Pinduoduo recently after being inspired by media posters.
“I want to contribute (in these difficult times). Besides, it’s cheap — 15 yuan for 2 kg, postage free,” Zhang said, adding that she saw many platforms selling Hubei products, which, she thinks, adds a human-interest element to business.
Hubei is a major producer of agricultural products. However, the impact of COVID-19 on agriculture has caused a decrease in income for locals and an increase in unemployment, said Xu Qiang, director of the Hubei Province Network Association.
“For example, the breeding period for juvenile lobsters is February when most of farmers could not go out and take care of them this year, so we have reduced production,” he said. “Half of the picking period for navel oranges was affected, some fruit is still hanging from trees.”
Due to reduced consumption, many pigs, chickens, fish and other produce in Hubei remained unsold. By April 2, 5,200 tons of dried tea, 113,500 tons of lobster and 42,000 tons of dried mushrooms were in stock, said Zhang Guihua, an official from the province’s agriculture and rural affairs department, at a news conference on April 3.
Chen Haijun, chairman of Tea from Dabie, a major tea brand in Yingshan county, Hubei, said its supplies and sales channels were both affected due to the contagion. Its offline stores in Hubei reopened at the end of March with little passenger flow out of fear of infection. “Tea merchants are afraid to visit. Tea lovers dare not drink,” Chen said, adding sales dropped dramatically. Now it has a 40-ton stockpile of unsold tea.
To tackle the challenge, the company cooperated with e-commerce platforms and staged livestreaming events to boost online sales. During a 30-minute livestreaming event on March 30, it sold 500 kg of tea, he said.
Taobao announced it would help sell 1.2 million tons of Hubei agricultural products in 2020. Fifty county or city heads will hold livestreaming events on Taobao Live. E-commerce websites JD, Pinduoduo, Suning.com and livestreaming platforms Douyu and Douyin all joined in the campaign.
George Ren, senior partner and vice-president of consultancy Roland Berger China, said the agricultural products sector was more affected by logistics issues, which will be eased with the resumption of transportation.