Alibaba joins hands with Hainan Yedao to accelerate its push south and seize the rural market
Recently, Alibaba announced a partnership with the listed company Hainan Yedao, aiming to push its channels downward and deeply develop rural and other markets. "This signing ceremony represents a further deepening of the cooperation between Yedao and Alibaba. With Yedao products entering 'Rural Taobao,' their development on e-commerce platforms will reach a new level." said Feng Biao, Chairman of Hainan Yedao Group. Industry analysts believe: "Through this cooperation, Alibaba will quickly extend its reach to Hainan and other places, expand its sphere of influence, and push its channels further downward.
Alibaba, which has long dominated the online world, has launched a channel-sinking model, aiming to further encroach on the rural market.
Recently, Alibaba announced a partnership with the listed company Hainan Yedao, aiming to push its channels downward and deeply develop rural and other markets.
As competition in e-commerce intensifies, overall market expansion space is becoming increasingly tight. In recent years, e-commerce companies have all set their sights on third- and fourth-tier cities and rural markets, and the emergence of "Rural Taobao" has made the rural market a "hot commodity." Many traditional brand manufacturers are also joining hands with e-commerce companies to jointly explore opportunities for pushing channels downward.
Alimama is part of Alibaba Group and is a leading big-data marketing platform in China, possessing Alibaba Group's core commercial data. It has been expanding in recent years, and Yedao Group, which holds a huge market locally, has become its cooperation target.
Industry insiders believe that it is very difficult for traditional enterprises to reach the rural market deeply, but Rural Taobao and e-commerce can help them quickly push downward. Against the backdrop of the era of "supply-side reform" and with the support of relevant government departments, the strategic cooperation between leading Hainan enterprises represented by Hainan Yedao and Nanguo Food and Alibaba marks a solid step forward in the exploration and innovation of large traditional Hainan enterprises toward the internet and e-commerce.
Since the beginning of this year, rural e-commerce and internationalization have become the two major themes of expansion for e-commerce giants. E-commerce companies such as Alibaba, JD.com, and Suning all aim to drive growth through rural e-commerce. Many local governments have high hopes for the "going to the countryside" strategies of e-commerce giants. For e-commerce companies, rural areas are the market with the greatest potential for tapping incremental users.
This also brings opportunities to traditional enterprises. It is understood that Hainan Yedao Group was established in 1993. It is a joint-stock listed company that grew steadily from a Haikou beverage factory with a history of nearly 80 years, and is the only listed company in China's health liquor industry. In recent years, it has intended to accelerate expansion, thereby forming an industrial development pattern led by health liquor and supplemented by health food and beverages, trade, and other businesses. Hainan Yedao has also been experimenting and exploring in e-commerce, entering Tmall and JD.com, and intends to use this cooperation with Alibaba to walk on both online and offline legs.
Relevant Alibaba personnel believe that Alibaba will use this form of bringing in partners to accelerate channel deployment.
"This signing ceremony represents a further deepening of the cooperation between Yedao and Alibaba. With Yedao products entering 'Rural Taobao,' their development on e-commerce platforms will reach a new level." said Feng Biao, Chairman of Hainan Yedao Group.
In fact, this is not the first time Alibaba has joined hands with a traditional enterprise to accelerate the pace of its "push south." Two years ago, some Alibaba industries settled in Hainan, and the international tourism island officially began comprehensive strategic cooperation with Alibaba. Recently, Hainan Yedao reached a cooperation with Alibaba again. Traditional enterprises represented by Hainan Yedao have been pushing their channels downward and deeply developing the rural market. By leveraging Alibaba's internet platform, Hainan Yedao will be able to adapt more quickly to the e-commerce era and complete its transformation.
Industry analysts believe: "Through this cooperation, Alibaba will quickly extend its reach to Hainan and other places, expand its sphere of influence, and push its channels further downward. The cooperation between Hainan Yedao and the Alibaba platform is also a landmark event for Hainan Yedao Group in entering the e-commerce era. It intends to use Rural Taobao's highly executable village-level deployment to combine online and offline. At the same time, the open-platform nature of the Alibaba ecosystem will allow the rural market to quickly enter the internet era."