May 24, 2022|
JD.com-Developed Omnichannel Agricultural Products Wholesale Trading Platform Sees Transaction Boom amid COVID-19
by Vivian Yang
China’s first omni-channel agricultural products wholesale trading platform “Yinongpi (亿农批)”, jointly created by JD.com and Dili Group, one of China’s leading operators of agricultural produce wholesale markets, has grossed nearly RMB 200 million yuan of transaction volume in the past nine months since launching in September 2021, according to JD.com.
The platform supports both remote and on-site transactions for agricultural products, a set of digitalized functions such as sales and inventory management, price index monitoring, food safety tracing system and other tools, as well as logistics, insurance and financial services, which are much needed in recent months to ensure timely fresh produce supplies as multiple regions in China face COVID-19 disruptions.
Yinongpi, JD’s omni-channel agricultural products wholesale trading platform
“As a result of the epidemic, we have fewer offline clients this year, but through Yinongpi, many clients reached us online,” said Jinyu Li, from the Jinyuxiangyun vegetable wholesales company, which was an early user of Yinongpi. “Under the help of the platform, our sales for produce in the first quarter achieved 30 percent year-on-year growth, including beans, cabbages, potatoes, onions and other vegetables.”
The first project based on Yinongpi platform was launched in Shouguang of Shangdong province, China’s largest vegetable production base, under a collaboration with Dili Group since last September. Thanks to the transparency the platform provides in the entire trading process, traders’ operating efficiency has been greatly improved, transaction cost lowered, and market regulators are able to carry out more timely supervision work to further safeguard the overall transaction process. Daily average transaction volume in Shouguang exceeded RMB 3 million yuan on the platform in the past nine months.
Yi Zhao, head of the omni-channel ecosystem development department under JD Super said that JD will continue to deepen cooperation with the agricultural products logistics park in Shouguang and to move all of the transactions in the park onto Yinongpi. At the same time, the platform will expand its services in food origin tracing, big data analysis, park management, financial and logistics support.
Meanwhile, Tengzhou, another county of Shangdong province that is famous for its potato production with over 2 million tons of yearly output, is leveraging Yinongpi to upgrade its supply chain and expand sales channels, not only in big Chinese cities but also to foreign markets such as Malaysia, Australia and other countries. This project between Tengzhou and JD.com officially launched in May of this year, is expected to achieve an annual output value of more than RMB 5 billion yuan in the near future.
production base in Tengzhu, Shandong province
“Yinongpi is a meaningful attempt for the agricultural products wholesales sector’s transformation, and will play an active role in exploring new potential in agricultural development,” Zhao added. “Under China’s drive for rural revitalization and digital economy, we hope the growth of the platform will create both industrial and social value.”