New impetus for Chinese farmers selling directly to urban consumers

In China, more and more farmers are using videos and live broadcasts to sell their products to urban consumers. According to a recent estimate, more than 100,000 farmers broadcast 2.52 million sessions on Taobao Live.

 

Farmers sell products directly to urban consumers through interactive live broadcasts and videos. The creators of "rural content" are more and more numerous, 100,000 according to Taobao Live which announces 2.52 million sessions, and the revenues generated on Douyin, the Chinese equivalent of TikTok, have been multiplied by 15 of a year over year.

 

In China, demand for fresh produce sold online has exploded, and trading through social media has offered small-scale farmers an inexpensive way to become entrepreneurs. In addition, the pandemic has forced more than 23 million migrant workers to stay in their hometowns. The counter-current of migrants returning to the countryside after decades of exodus to the cities is growing, and nearly half of the new rural entrepreneurs are “fanxiang qingnian”, or returning youth.

 

Among these new entrepreneurs, Jin Guowei who is now Brother Pomegranate with 7.3 million followers and 300 million CNY ($46.2 million) in sales in 2020. During one of his sessions he sold for 6 million ($925,112) of pomegranates in 20 minutes. As well as Guo Chengcheng who has 2.5 million followers and sells various products, such as pumpkins and peaches, of his own production or that of other villagers. The farmer takes up to 50,000 orders via live broadcast, generating CNY 9 million ($ 1.3 million) in sales per month.

 

Product transport remains a concern, however. The use of logistics companies or refrigerated delivery specialists erodes profit margins. But the continued development of orders should more than compensate.