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Huaning County Supply and Marketing Cooperative in Yunnan Weaves a Distribution Network to Boost Rural Consumption Upgrading

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Feature: Huaning County Supply and Marketing Cooperative in Yunnan Weaves a Distribution Network to Boost Rural Consumption Upgrading
(Agricultural Wealth Network)    The Huaning County Supply and Marketing Cooperative leverages rural resource advantages, vigorously develops township- and village-level supermarket chain stores, and weaves a distribution network for consumer goods and means of production, linking the ever-changing market with the thousands of rural households. It has not only achieved rapid development itself, but also played a positive demonstrative role in transforming the rural commercial distribution system and expanding effective rural supply. 

Based on "Agriculture, Rural Areas and Farmers" Building Bridges

With the development of the rural economy and the deepening of rural tax and fee reform, farmers' demands have continued to escalate. However, traditional rural commercial sales were small in volume, high in price and poor in quality, making it difficult to meet farmers' production and living needs. The rural market holds enormous potential and business opportunities, but due to gaps in farmers' income, rural electricity and water supply, and the consumption environment, effective rural supply is clearly insufficient. This is prominently reflected in two aspects: First, the foundation of rural commodity distribution is weak, and township farmers' consumption mainly relies on fairs and backward consignment shops and mom-and-pop stores. Second, farmers' consumption is prominently unsafe, inconvenient and uneconomical. As the rectification and standardization of the market economic order and urban crackdowns on counterfeit goods intensified, fake and shoddy goods, unbranded goods and expired or deteriorated goods flowed into rural areas, making farmers the direct victims, with consumption safety not guaranteed.

Serving "Agriculture, Rural Areas and Farmers" is an important responsibility of the supply and marketing cooperative. Recognizing exactly this, since 2000, the Huaning County Supply and Marketing Cooperative has taken root at the grassroots level, built bridges for commodity distribution between rural and urban areas, and committed itself to building two major network systems: agricultural means of production and daily industrial consumer goods. On the one hand, it leverages its systemic network and scale advantages to cooperate with manufacturers, serving as general agent and general distributor to obtain stable supply sources with price competitiveness. Using capital as a link, through transformation, new construction, acquisition and franchising, it builds regional and county-level distribution centers and chain operation outlets, develops direct-sale and franchise chain stores for agricultural materials, integrates them step by step from point to area, increases outlets, moves terminals forward, expands the network system and extends service scope. On the other hand, it plans and cultivates regional distribution centers and carries out distribution business. It accelerates the integration of township- and village-level sales networks, selectively absorbs a batch of rural social outlet resources outside the supply and marketing cooperative system to join the cooperative's chain operation system, and builds a new rural daily industrial goods operation system with the county level as the main body, townships as the backbone and villages as the foundation.

Open Door Policy for Running the Cooperative Integrating Resources

Spacious and tidy houses, engaged in the operation of agricultural materials, non-staple food supermarkets, daily necessities and other commodities - this is the scene the reporter witnessed at the Hebaotian farm household store in Fudian Village Committee, Huaxi, Huaning. Sun Weiqiong, who runs the farm household store, said: "Our village has more than 400 people, and there are two other small shops in the village. Since the farm household store opened, the other two have not been able to sell their goods. Farmers very much like to come to this store to buy things, with monthly turnover of more than 36,000 yuan." Villagers said: "Since the farm household store was built, we can buy quality products at low prices without leaving the village, which saves us a lot of worry." This farm household store is just one of more than 90 service outlets for farmers developed in Huaning County in recent years.

In view of the rural population distribution, business outlets and market consumption characteristics, the Huaning County Supply and Marketing Cooperative proceeds from actual conditions and adapts measures to local conditions, implementing the "small supermarkets, big chains" strategy. It adheres to combining transformation with new construction, expands chain coverage, relies on county-level chain operation enterprises or urban comprehensive shopping malls (Baixin) and the agricultural materials company, takes chain distribution as the main form, and advances the construction of county, township and village three-level networks. It has gradually formed a networked chain operation pattern with the county agricultural materials company's distribution as the leader, township branches and supermarkets as the backbone, village-level farm household stores and agricultural materials stores as the foundation, and multiple business formats coexisting, improving the rural consumption environment and guiding and promoting farmers' consumption. At present, 180 agricultural materials stores and convenience stores (farm household stores) have been built, covering 100% of the county's village committees. Four township-level distribution centers have been built in Lufeng, Qinglong, Panxi and Huaxi. Agricultural materials chain stores supply nearly 40,000 tons of chemical fertilizer annually, with a market share of 90%.

In the layout of outlets, the county supply and marketing cooperative adheres to combining economic benefits with social benefits, fully utilizes grassroots cooperative operating venues and township and village collective housing facilities, and builds through self-funding, cooperation or franchising. In development steps, it "takes small steps quickly," developing year by year, developing one and maturing one, ensuring they can be built, consolidated and effectively operated. In operating mode, it widely absorbs capable people to join, runs the cooperative with an open door policy, and has successively absorbed more than 100 people including employees who still work in the distribution field in rural areas after restructuring, rural capable people, rural agricultural product brokers and rural enterprises. Through open and inclusive operation, the supply and marketing cooperative has become a true rural cooperative economic organization, with flexible mechanisms, strong competitiveness and full of vitality and vigor.

The establishment of a new distribution platform has changed the traditional business model and improved service levels. Chain supermarkets have broken through the "three-foot counter" that rural supply and marketing cooperatives had maintained for half a century, changed the supply and marketing cooperative's you-buy-I-sell transaction method, and integrated more humanized factors into the relationship with farmers. Local farmers can buy safe, trustworthy daily consumer goods and agricultural materials at reasonable prices without leaving the village or going to town.

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