E-commerce: Changing the landscape of rural poverty

Setting off a Chain Reaction

Since e-commerce businesses have been rapidly growing and are expected to grow even more in Cheng County, they also became a major factor changing the shape of local logistics industries, scenic-spot-based agritainment, and rural informatization.

To build an e-commerce platform based on supply chain management, local government and business retailers have mobilized their social resources to attract more investments. Those investments are used to set up more physical warehousing locations, distribution centers and courier firms, as well as to support local start-ups.

An increasing number of independent online stores from Cheng County have signed up for a Taobao Account or teamed up with JD.com. Additionally, villagers also managed to open stores via WeChat, a do-it-all super mobile e-commerce platform. By using tierce e-commerce platforms, a well-designed WeChat store can be built within 5 minutes and offer multiple payment options. And the best part is these services are free.

"This kind of business model shrinks the distance between villagers and urban areas. As they get closer they get to know more about each other, and so rural-urban integration benefits all," a local official claimed.

To solve delivery issues and boost the sales of agricultural products, much of rural roads are paved and well-maintained with these investments. And Countryside Inns, privately owned rural hotels, are also being established, boosting rural tourism, helping the generation of employment, as well as improving the earning capacity of locals.

Meanwhile, rural information service centers are also formed, covering 17 towns in Cheng County, where local people can easily learn about supply and demand, job opportunities and national agricultural policies. The center is also helps the elderly and people without an Internet access to buy daily necessities and pay bills.

"Cheng County set a fine example for all rural counties in China. While tapping into market methods and Internet technologies to alleviate poverty, we should still employ traditional circulation systems, explore new business models, and nurture a supportive environment for e-commerce in rural areas," indicated Hong Yong, an assistant researcher at the Research Institute of the Credit and E-commerce School, Ministry of Commerce.

"A booming e-economy in rural China will help us realize the goal of building a moderately prosperous society in all aspects," Hong believes.