Rural E-commerce Platform – Gradual Poverty Alleviation by Marketing Local Specialties and Tourism

Background

Located in south central China, Jianghua Yao autonomous county, Yongzhou city, Hunan province borders Guangdong province and Guangxi Zhuang autonomous region to the south and has the largest ethnic Yao population of any county in China. Sixty-five percent of its population is part of the Yao ethnic group, and 35 percent is Han or part of other groups, whereas the country is about 92 percent Han overall.

Many of Jianghua's residents were not born or raised in the county, including a group of people who immigrated to the area from other parts of China as a result of the construction of a major dam, and natives often move to large urban areas for work when they reach adulthood, which has resulted in a labor shortage in the county.

Jianghua's beautiful landscapes, abundant natural resources, and colorful Yao culture are some of its advantages. The economy is underdeveloped, residents are predisposed to traditional mindsets, and there is an overreliance on primary industry in the county, however.

In 2014, 115,400 people and 112 villages in Jianghua were identified as impoverished; the poverty rate stood at 22.4 percent.

Interventions

Jianghua decided to use the power of the internet in order to harness its strengths, promote its characteristic products outside its borders, and counter poverty. Central South University developed an e-commerce platform for the county and has continued to provide help with marketing and other services.

The university established an e-commerce incubation boot camp and a livestock and crop farming boot camp in order to help farmers who want to sell their products online and develop e-businesses and provided them with training, support, and an injection of innovation.

Cultural tourism routes have also been developed that highlight the rich heritage in the area, local folk customs, scenic areas, and historical sites. Games, music, festivals, and other aspects of Yao culture are becoming tourist highlights as well, and many souvenirs and other products have been developed based on Yao culture and characteristic Jianghua imagery.

The e-commerce platform that Central South University created is known as the Capital of Yao Select and was tailored to the needs of Jianghua's citizens. It features eight categories of products, including traditional Yao medicine, oil, fresh fruit, tea, handicrafts, and more. Lodging in hotels and via homestays, agritainment activities, package tours, and other tourism services and arrangements can also be booked on the site. Customers receive discounts for making purchases as part of a group and advance booking. Coupons, bonuses for sharing content, and other promotions are available as well.

Efforts have been made to attract customers and bolster the reputation of the Capital of Yao Select site. A new and relatively small e-commerce platform, its management team decided to open stores on and participate in promotional activities with established e-commerce websites such as JD.com and Suning.com in order to increase exposure.

Central South University has also developed training programs for Jianghua’s citizens so that they can create their own e-commerce stores. Employees of leading companies have been invited to provide guidance and share their experiences.

This solution can be used by policymakers and organizations that want to reduce poverty via e-commerce, especially when there is an emphasis on agriculture and tourism.

Results

1. Capital of Yao Select contributed to approximately 83,400 of Jianghua's residents escaping from poverty by the end of 2017; the poverty rate decreased from 22.4 percent in 2014 to seven percent.

2. The county's GDP grew an average of 10.6 percent from 2012 to 2017 to 177 percent of what it started off as partially because of the e-commerce platform.

3. Jianghua optimized its industrial structure and began using the internet for economic development purposes, and impoverished residents became able to increase their incomes in new ways.

4. Central South University has organized offline fairs to display Jianghua's characteristic products as the Capital of Yao Select becomes more popular around the country.

5. Twelve large farming families participated in the e-commerce incubation boot camp and livestock and crop farming boot camp. They began farming a total of 40 ha of sweet potatoes, 14.67 ha of other vegetables, 13.33 ha of kiwi, 13.33 ha of cattle in undercanopy areas, 10 ha of Camellia oleifera, 6.66 ha of Tibetan pigs, and other products at the Central South University demonstration base. The training courses led to the creation of more than 450 jobs and 54 franchised merchants, and guidance was provided regarding the development of 35 agricultural products. The projects resulted in 6 million yuan (US$844,800) of revenue as of November 2018.

Lessons Learned

Local advantages and characteristics should be fully harnessed whenever possible. Jianghua suffers from a labor shortage, but it does have great natural resources, colorful Yao culture, and wonderful scenery. The local government, therefore, decided to implement an e-commerce platform to promote Jianghua's speciality products and its tourism industry.

Technology and innovation play an important role. Central South University utilized its academic resources and educational experience in order to develop the e-commerce platform and provide useful training to farmers.

Jianghua's experiences are replicable in other areas. Central South University participated in the fourth "Internet plus innovation and start-ups competition" in Anhui province and shared what was learned from the Capital of Yao Select project.