Media, Internet and Agriculture Integration Boosts the Transformation and Upgrading of Traditional Agriculture

As the “Internet Plus” initiative continues to penetrate every industry, agriculture, the foundation of the nation, is also actively seeking a transformation in its development model. And “Internet Plus specialty agriculture” is regarded as a new trend in future agricultural development.

“This is now an era of crossover. Traditional industries, by ‘plus’ another industry or platform, help themselves achieve better upgrading, progress and development through innovation, reform and reinvention.” said Yang Xiao, general manager of China Vision Heyang Media Technology (Beijing) Co., Ltd., at the recently held press conference marking the new starting point for the transformation and upgrading of traditional agriculture under “media + internet + agriculture,” and the first round of promotion for Chi You Ji as well as the launch of the Geographical Indication Mall.

Opening up a new model of agricultural development

“Traditional industries crossing over with the rapidly developing internet, and effectively integrating with it, represents the openness of an industry, and is also an innovative driving force for the reinvention and rebirth of an industry, and moreover an extension of an industry's openness. Using channels to carry content and expand it into a platform creates a new ecosystem in a new field.” said Yang Xiao.

He believes that “media + internet + agriculture” is precisely a brand-new development model for agriculture. “Media +” means breaking the traditional business format, using media as a leading platform to integrate food programs, physical restaurant stores, the Geographical Indication Mall and social platforms into one, channeling users from the content platform to the mall and physical stores to complete transactions.

Li Wanshou, chairman of Xietong Innovation Fund Management Co., Ltd., believes that, compared with other agricultural product e-commerce businesses, the combination of culture and media with the real economy will change the shortcomings of traditional e-commerce, which is bland and lacking in depth, and give e-commerce cultural wings.

In Yang Xiao's view, how to stimulate consumers' interest in buying agricultural products is a problem that e-commerce urgently needs to solve at present.

Yang Xiao said, “Open up new program formats, seize the market opportunity first, and use the form of variety shows to convey information about food and agricultural products, stimulating users' interest in agricultural products. With media-style content at the center and high-quality content as the carrier, agricultural products are delivered to audiences in scenario-based, plot-driven and life-oriented forms, then widely spread through large online video platforms to attract and cultivate a group of loyal food lovers. Through the program's content, users come to know the ingredients and the making of food, which arouses their interest and stimulates their desire to buy. At the same time, the program is paired with offline food restaurants and the Geographical Indication Mall to satisfy users' desire to buy and taste in a timely manner.”

Li Wanshou said, “Guizhou Zunyi Compass Company has launched the Geographical Indication Mall, the food variety show Chi You Ji and the ‘Chi You Ji’ restaurant, precisely through mixed online and offline transaction models such as B2B, B2C, O2O and C2B for geographical indication products, realizing a new business model of online transactions and offline transactions between enterprises, integrated operation of the online mall and physical stores, and strong promotion of local name cards by quality media, forming a closed loop of the industrial chain centered on geographical indication products and culture. This new business model aims to improve the circulation efficiency of geographical indication products, promote the modernization of agriculture with Chinese characteristics, and advance the transformation and upgrading of agricultural industrialization.”

“Internet Plus specialty agriculture” becomes a new trend for future development

At present, “Internet Plus agriculture” is advancing rapidly.

Premier Li Keqiang of the State Council presided over an executive meeting of the State Council on October 14, introducing new policies on developing rural e-commerce. The meeting pointed out that it is necessary to accelerate the development of rural e-commerce, organically combine physical stores with e-commerce, and create a superimposed effect between the real economy and the internet. Specifically, efforts must be made in improving the development environment for rural e-commerce, cultivating rural e-commerce talent, and increasing policy support for rural e-commerce. To this end, the total national fiscal investment is expected to exceed 140 billion yuan. The rural market will become the next blue ocean market for e-commerce after books, clothing and 3C.

Industry insiders say that “Internet Plus agriculture” is not a simple addition of the traditional business model and the mobile internet, but a deep integration between merchants and customers. Against the background of the rapid penetration of the internet and favorable policy support, “Internet Plus agriculture” is entering a golden period of accelerated transformation and innovative development.

It is worth noting that specialty agricultural product e-commerce has always had people working on it, but there are few premium products and few with distinctive features, and those who truly grasp the spiritual essence of “Internet Plus” are even rarer. The “geographical indication products” launched this time creatively approach it from the cultural angle of one city, one history, and one specialty product, one story, seeking famous specialty products and discovering the best merchants.

Li Wanshou said that all merchants that have settled in the Geographical Indication Mall are geographical indication product merchants that have passed quality inspection by the General Administration of Quality Supervision, Inspection and Quarantine, and all products are high-quality varieties unique to various places, with cultural depth and long and distinctive craftsmanship. They not only allow consumers to enjoy authentic hometown delicacies without leaving home, but also solve the pain points of today's social food safety problems and the demand for high-quality ingredients.

Although “Internet Plus agriculture” is an industry encouraged for development by the state, high logistics costs are a difficult problem that agricultural e-commerce development urgently needs to solve.

Industry insiders believe that the fresh nature and non-standardized nature of agricultural products themselves make their e-commerce sales far more complex than industrial products, and this is the primary reason limiting their development. “The added value of agricultural products is generally not high, but the costs of logistics and preservation are very high, especially for fresh foods, which require cold-chain transportation. This not only compresses enterprises' profit margins, but also raises commodity prices, weakens their competitive advantage against offline channels, and harms consumers' desire to buy.”