CCM: Different views on e-commerce of seed industry from insiders' perspectives 10-19-2016

Summary: What do insiders think of the future development of e-commerce of the seed industry? Different people have different ideas.


Currently, the overall development of e-commerce of the seed industry can be summed up in three words: small, steady and slow. E-commerce of the seed industry is generally in its infancy and entrepreneurship stage, without large-sized projects and high market awareness. Under such circumstance, what do insiders think of the future development of e-commerce of the seed industry? Different people have different ideas.


Tong Pingya, researcher from Chinese Academy of Agricultural Sciences:


The most important advantage of e-commerce is to achieve the linkage between production and sales. In the traditional marketing chain, the transfer of the industry’s maximum profit occurs in circulation process. However, this has been changed by e-commerce. Farmers are able to gain more benefits by enjoying ex-works price and experiencing service of enterprises’ technical devices directly. E-commerce provides an open and transparent platform to realize the products’ traceability. This can not only avoid infringements, but also promote fair competition, which is conductive to the industry’s sustainable and healthy development.   


Jia Huibiao from Shanghai Seed Trade Association:


Although the combination of seed industry and e-commerce develops at a slow speed, it has a promising prospect. This is a kind of social tendency, so this new industry will develop quickly and prosperously in the future.   


Li Liqiu, vice president and secretary general of China National Seed Association:


After the e-commerce platform for the seed industry appeared, the retailer's profits are distributed to farmers, enterprises and the platform respectively. How to change the retailers into delivery business and service providers has become the key to the e-commerce of the seed industry’s success. Because of the conflict of interest, many retailers and agents will resist the e-commerce of the seed industry. As a result, the e-commerce of the seed industry should be promoted with some new products in some specific areas.


Hou Yunpeng, chairman of Beijing Tunyu Seed Co., Ltd.:


Based on the current situation, seed channels account for a large part of the seed sales profits, with 50% of the total profits. Seed enterprises are engaged in researching and marketing. Deducting their production cost, they obtain less than USD0.82 (RMB5) for a bag of seeds. 


Wang Weiwen, general manager of Beijing Aizhong Internet Technology Co., Ltd.:


From the point of logistics, capital flow and information flow to investigate agricultural industry, it is not difficult to find out that the stuttering of information is the most obvious, leading to low efficiency of the industrial chain. Internet information technology and e-commerce platform have a brilliant future. Although the scale of rural Internet users is growing rapidly, all kinds of agricultural websites are experiencing hard times, either difficult stage or pioneering stage with many problems to be tackled. As a next market space that is unknown to people, agricultural e-commerce is the target of agricultural enterprises and the Internet giants depending on their own advantages and various ways to develop markets. Beijing Aizhong emerges at a right time to face both opportunities and challenges.   


Liu Shi, seed industry professional manager:


No one can deny the correctness and forward looking of e-commerce’s moving into agricultural field. However, e-commerce’s development in agricultural field in rural ares must be different from that in other fields. It should develop gradually instead of developing dramatically. As investors and participants, without adequate understanding of the particularity of agricultural field and sufficient preparations of  mode, capital, technology and psychology, they should not invest as much as possible to expand their industrial size and markets in order to avoid great losses.

About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.


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