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The Network Marketing of Fresh AgriculturalProducts in ChinaYANG Xue*School of Economics and Management, Sichuan Agricultural University, Yaan 625000, ChinaAbstract The paper introduced the connotation of network marketing of fresh agricultural products and analyzed the fundaments of launching theC2C marketing of fresh agricultural products in China The fundaments mainly cover the development of e-commerce, the transformation of con-sumption concept, the change of life style and the features of Chinese agricultural production The developmental status of the C2C marketing ofChinese fresh vegetables and fresh fruits is introduced and the plights, including imperfect rural network infrastructure, inadequate talents specialize-d in network marketing of fresh agricultural products, uneven quality of agricultural products, immature logistics system, uncertainty existed in facedby the C2C marketing of fresh agricultural products and imperfect governmental protection system, are pointed out In the end, the developmentaltrend of Chinese network marketing of fresh agricultural products on the basis of C2C mode is describedKey words C2C, Fresh agricultural products, Network marketing, ChinaReceived: March 16, 2011 Accepted: April 18, 2011* Corresponding author E-mail: 51596295qq comWith the rapid development of internet technology, on-linemarketing has become an important part in peoples daily lifeThe application of e-commerce model of C2C has opened up abrand-new channel in chinas market of fresh agricultural prod-ucts This paper at first introduces the connotation of the net-work marketing of fresh agricultural products Then, on the ba-sis of introducing the background of developing the networkmarketing of fresh agricultural products in China, the currentdevelopment status of Taobao com about selling agriculturalproducts is discussed The challenges confronted by the modeare pointed out and the developmental trend of the mode in Chi-na is analyzed1 The connotation of the C2C network mar-keting of fresh agricultural productsFresh agricultural products refer to the products producedby agricultural sectors without being processed or being slightlyprocessed Fresh agricultural products can not be stored at thenormal temperature and they include vegetables, fruits, andmeat and aquatic products 1 The fresh agricultural productsare mainly animal and vegetative products, so they are easy togo bad, hard to store and have the seasonal, periodical andgeographic features The transportation of fresh agriculturalproducts in most Chinese areas follows the traditional way of lo-gistics, which take the wholesaler as a core and relies onwholesale market and farmer market 2The C2C e-commerce is the e-commercial trade modefrom consumer to consumer It provides an on-line transactionplatform to let the buyers to choose products on line and thesellers to supply goods to sell 3 The monitoring data from DC-CI Netmonitor shows that the C2C e-commerce is widely ac-cepted by the masses The population who accepts e-com-merce, has increased from 0162 billion in 2008 to 0196 billionin 2009, with the increase rate of 206%The specific steps of applying C2C e-commerce to freshagricultural products are as follows Firstly, rural householdsregister a virtual shop on the third party transaction platform( forexample Taobao com) Secondly, rural households releasethe crops, the breeding situation of poultry, quality survey re-port to the platform to let the consumers to consult the informa-tion of agricultural products Thirdly, the consumers can orderor purchase the agro-products by paying them through the third-party platform ( such as Alipay) , and then the rural householdswill send the fresh agricultural products to consumers throughlogistics companies or delivering by themselves2 Background of applying C2C e-commerceon fresh agricultural productsTraditional marketing of fresh agricultural products is re-stricted by time and space and the principal way is the directtransaction in agricultural market With the advent of networktimes, the transaction model of fresh agricultural products onthe basis of B2B and B2C e-commercial modes has obtainedrapid growth The network marketing of fresh agricultural prod-ucts, supported by network technology, relies on the websitesof fresh agricultural products industry, websites of enterprises,websites of agricultural information of governments at variouslevels to realize the on-line trade negotiation and out-line dealand payment In recent years, the C2C e-commerce mode onthe basis of on-line retailer, has entered people daily life Thefollowing aspects can explain the application and launch of thenetwork marketing21 The development of e-commerce With the developmentof modern information technology and the improvement of net-work environment, the e-commerce dominated by on-line mar-keting develops rapidly China is a traditional granary countryand agriculture is the basis of its national economy, the rapidAsian Agricultural Research 2011, 3( 4): 125 127, 131 Trade of agricultural products and agricultural logisticsgrowth of e-commerce has greatly promoted the developmentof agricultural products In the past, the lagged information wasalways the bottleneck for the marketing of agricultural productsBut nowadays, by using the e-commerce, the supply and de-mand information of agricultural products can be obtained time-ly, which is conducive to cutting transaction costs and impro-ving efficiency The internet allows the supply party and the de-mand party to convey their information timely In the past, theseasonal, geographic nature and easy to go bad feature of agri-cultural products caused numerous difficulties in the marketing ofagricultural products But at present, the rapid and convenientchannel of e-commerce can address these problems promptly 422 The change of consumption idea In the past, peopleholds the traditional transaction habit of observing, touching,listening and tasting , so they thought the network marketingwas virtual and without credibility and they preferred to face toface trade even it took more time and energy With the rapiddevelopment of internet times, people began to know the inter-net The 27th Statistical Report on the Developmental Status ofChinese Network issued by Chinese Internet Network Informa-tion Center shows that by the end of January , 2010, the num-ber of netizens in China has achieved 0457 billion, 7330 mil-lion more than that in the end of 2009 Notably, the on-lineconsumers have the annualized growth of 486%, which is rapi-dest growth of application of internet It indicates that moreeconomic activities will enter the internet times23 The changes of life style For one thing, the rapid paceof life mode shrinks urban residentstime and energy to buy ag-ro-products in agricultural markets; for another thing, the socialaging trend is very serious and the feeble old-aged people cannot go out to buy agro-products alone Therefore, the launch ofon-line marketing of agro-products can not only explore newmarketing channel of agro-products for farmers, but also saveurban residentstime, provide convenient way for old-aged peo-ple to buying goods and let the old-aged people to avoid thetrouble of taking crowed transportation and queuing24 The characteristics of Chinese agricultural production Chi-nese agricultural products is characterized by dense populationand limited land and is dominated by scattered and small scaleproduction mode The application of C2C network marketingmode to fresh agricultural products creates a new channel forrural households with small agricultural production scale Themode can not only expend the transaction space of rural house-holds, but also abate the overstock of agricultural products, de-crease market risks, saves the transaction costs of the intermedi-ate circles and prevent other people speculation actions, to real-ize the joint of producer and consumer to protect the interests ofrural households and consumers to a large extent3 Developmental status of the C2C networkmarketing of fresh agricultural productsAccording to the nature of the sellers, the network C2Cmarketing mode of fresh agricultural products can be divided in-to two categories The first one is the registered company Thecompany contracts a farmland, plants crops by professionalway and sell the products directly after harvesting The majorconsumers of this kind of company are supermarkets In thecompany, few products are sold through internet The othercategory is the rural household or urban residents with landParts of their agricultural products are left to support their ownneeds and the surplus parts will be sold According to the typesof fresh agricultural products, the C2C network marketing freshagricultural products can be classified into fresh vegetables,fresh fruits, fresh meats and aquatic and sea food In the fol-lowing part, the sales of fresh fruits and fresh vegetables onwwwTabaocom are expounded3 1 The network marketing of fresh vegetables Takingwww taobao com as an example, there are 224 sellers sellfresh vegetables, most of them distribute in developed cities75 sellers come from Jiangsu Province, Zhejiang Province andShanghai and 29 sellers come from Beijing There are aggre-gate 1 271 fresh vegetables sold on taobao com Most of thevegetables are leaf-class vegetables and root vegetables andthe vegetables are sold by the way of selling shortly after pick-ing The sellers provide the growth situation of the vegetableand introduce the nutritive value and food value of various kindsof vegetables Meanwhile, the sellers will process the vegeta-bles according to the transportation distance and special de-mands of buyersFrom the perspective of price, the prices of the vegetablesare higher than that in agricultural market and supermarketThere are three reasons for the relatively higher price In thefirst place, the vegetables are called green vegetable with highplanting costs; in the second place, the sellers often sell theagricultural products, which are rare in the local places, so therarity leads to the high price; in the third place, the physicalfeatures of vegetables increased the costs of transportationFrom the perspective of logistics, the buyers pick the agro-products through the search engine of the website and thetypes, prices and location of the agricultural products, and thebuyer supplies the agricultural products according to the de-mands of buyers After packing the products, the sellers willsend the products to buyers by entrusting the logistics compa-ny, sending them by themselves or asking the buyers to takethe products From the perspective of the capital flow, after or-dering the agricultural products, the buyers transfer the relevantfee to the third party Alipay from their bank account After thebuyer confirming that they have received the products, the Ali-pay will give the money to the account of the seller Some web-site allows paying after receiving the products, so the buyer cangive the money directly to the seller without Alipay From thecomments of the buyers, the problems of on-line marketing offresh agricultural products focus on the following aspects Theproducts bought have disparity with the products described; thelosses of agricultural products in the process of transportation;the slow speed of transportation affects the freshness of agri-cultural products3 2 The network marketing of fresh vegetables Takingwww Taobaocom as an example, there are 1 177 sellers and7 309 fresh fruits Among the virtual stores, a Jiamailong store621 Asian Agricultural Research 2011is the biggest and professional fruit website Form the registra-tion of Jialimai on 31 August, 2010 on taobao com to the 28February, 2010, there are all together 2 171 buyers buy freshfruits from it All of its fresh fruits are picked by the buyers ofthe company and the intermediate sections are eliminated Atthe same time, Jialimai only supply the products within the areaof Beijing and the products are delivered by the staff, which en-sures the freshness and safety of fruits Jialimai provides theno-questions-asked return service, which solved consumersworries about the quality of the products From the perspectiveof prices, the prices of fruits on the on-line shop Jialimai arelower than that in the supermarket and agricultural market, forexample, the fresh Chile strawberry sold in supermarket is 28yuan/125 g, but in Jialimai, it is only 18 yuan/125 g, so in threemonths, the virtual shop sold714 pieces of the products At thesame time, the transportation fee of products can be reducedto different degreesComparing with taobao com, the other C2C e-commercialmode websites, such as eBay, there is only one seller and fivekinds of fresh fruits sold in the websites But in Alibabacom andPaipaicom and some other websites, there is no such product inthe e-shops It can be seen that the C2C network marketing offresh agricultural products has not been fully launched4 Problems exist in the development of C2Cnetwork marketing of fresh agricultural prod-ucts41 Imperfect rural network infrastructure construction In re-cent years, the construction of Chinese rural network has expe-rienced great growth, but the infrastructure is still weak and gapamong various areas is still large Rural households with theaccess to internet mainly concentrated on Beijing, Shanghai,Zhejiang Province, Jiangsu Province, Guangdong and someother developed areas, rare rural households in central andwestern area are accessible to internet Therefore, the govern-ment should strengthen the investment in rural internet infra-structure construction and provide updated agricultural produc-tion technology and prompt and accurate market information forfarmers to better lead farmers to participate in market42 Inadequate talents on network marketing of agriculturalproducts The network marketing of agricultural products de-pends on peoples master on computer technology and internetcommunication technology, whats more , rural householdsshould fully tap and master market information and make rea-sonable production and pricing according to the informationHowever, agricultural producers lack the necessary knowledgeon e-commerce and systematic application of modern informa-tion technology, so it is hard for them to undertake the jobHence, the government should intensify the investment on ruralvocational education; improve farmers ability to use internet;cultivate a large number of talents with network marketing tech-nology to lay solid social foundation for the network marketing ofChinese agricultural products43 The quality of agricultural products can not be guaranteedComparing with the traditional face to face trade in agricultur-al market, people can not tell the quality of agricultural productsfrom the virtual on-line transaction, which makes the quality ofagricultural products the prior concern of consumers Besides,most of the agricultural products traded through C2C e-com-mercial mode are produced and sold by the rural householdsthemselves, so it is hard to appraise its quality Therefore, howto solve the imbalanced information of buyers and sellers and a-void the cheating is more and more important In the firstplace, the standardized quality standard and quality appraisalprocess should be stipulated and the quality supervision depart-ments should be responsible for the quality appraisal and pro-vide product certificate In the second place, in the process ofnetwork marketing of agricultural products, rural householdsshould reinforce brand construction and improve the quality,yield and added value of agricultural products through credit op-eration, so as to improve consumers credit on agriculturalproducts and reputation of agricultural products, and then con-trol the privilege of making a price In the end, the C2C websiteshould establish strict credit appraisal system and insurancesystem to prevent the cheating behaviors between the buyersand sellers44 Immature logistics system For one thing, fresh agricul-tural products characterized by short warranty, easy to go bad,uneasy to store and transport increase the difficulties and costsof transportation, limit the circulation scope of fresh agriculturalproducts Whats worse, with the expansion of time and space,the losses in the process of transportation will increase rapidlyFor another thing, Chinese logistic distribution system is imper-fect with long distribution time range, narrow coverage of logis-tics and unsecured quality Therefore, selecting suitable logis-tics and perfect logistics system can not only improve the logis-tics level but also decrease logistics losses, satisfy consumesdemand and enhance the market competition of agriculturalproducts to lay sound foundation for the network marketing offresh agricultural products45 Uncertainty of market The network marketing mode onthe basis of C2C e-commerce, rural households have to con-front with great risks for the consumers are flexible, arbitraryand uncertain when buying agro-products and the consumersdemands on agro-products fluctuate greatly, which is difficultfor the production and marketing of agro-products Therefore,rural households should have astute market observation andthey should reduce the market risks of agro-products throughnetwork reservation At the same time, rural households shouldlaunch the production of supporting products, such as cannedvegetables, dehydrated vegetables so as to tap new channelsfor the network marketing of vegetables to sole the inventory offresh vegetables46 Unsound policy security from the government The B2Band B2C modes of e-commerce have been launched for a longtime and in the process of practice, the government has provid-ed relevant policies and regulations to secure them But as forthe newly emerged C2C e

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