Agricultural Economist in South China's Yunnan Province Introduces and Sells Kiwi Berries to Consumers Online

Fan Jinming was born in 1988 in Kunming, capital city of south-western China's Yunnan Province, and majored in agricultural economics when he went to university. He spent part of his undergraduate years in the Netherlands after enrolling in a special exchange programme and embarked on entrepreneurship studies in Sweden as a graduate student. Fan then ventured into the realm of agricultural consulting in Germany after completing his education in 2012, which laid the groundwork for his future endeavours.

During his international odyssey, he encountered the kiwi berry (Actinidia arguta), which is a miniature version of regular green kiwifruit resembling large grapes that features smooth, edible skin and a complex flavour profile that is slightly sweeter than its larger counterparts but also retains a subtle acidic note and is thus often seen as a delightful treat that can be consumed directly.

Fan also learned that wild kiwi berries originated in China and other parts of East Asia and flourish in mountainous and hilly areas in the northeast part of the country as well as in provinces such as Yunnan, Guizhou, Sichuan, Hunan, and Hubei in the nation's south and central regions and that they were eventually introduced abroad and gained popularity in places like Europe and the United States, where they command high prices due to their novelty and relative rarity.

The agricultural economist continued to conduct research and discovered that kiwi berries are subject to stringent market controls in China and were primarily available in limited quantities in the nation's first-tier cities. He learned that they were imported from New Zealand, retailed for around RMB400 per kg, adorned the shelves of boutique supermarkets, and symbolised exclusivity and sophistication. Vast untapped potential thus existed in the broader consumer landscape.

Fuelled by his newfound passion, Fan spearheaded the establishment of an agricultural technology company in Sichuan's Ya'an City, which is fertile and suited to fruit cultivation, when he returned to China in late 2012. An inaugural group of kiwi berry plants, which consisted of over 1,000 saplings across more than 10 varieties, was planted in the city after he navigated the landscape and secured approval from the Ministry of Agriculture, Sichuan Provincial Department of Agriculture, and Ya'an Plant Quarantine Station.

By 2015, following two years of meticulous experimentation, Fan had curated three premium varieties of the fruit and expanded the size of his orchard from a modest 30 mu to an impressive 300 mu.

He initially favoured offline distribution channels when the trees began yielding abundant harvests in 2018. Chinese consumers' lack of familiarity with kiwi berries resulted in substantial investments in promotional activities that often surpassed 50% of production costs in order to educate and inform them. Compounding difficulties, capacity was limited and sales windows were brief, which hindered the establishment of stable relationships with retailers. Harnessing the power of e-commerce giants, Fan pivoted towards online sales platforms, however, in order to reach a broader consumer base. He also hired a marketing agency that was able to reach young people and other consumers through compelling storytelling, captivating imagery and immersive videos.

Fan's transition to online sales also reduced costs as well as dependence on traditional supply chains as the scale of his fruit farming operation expanded and was thus a pivotal moment in his entrepreneurial journey.

The optimal period to harvest kiwi berries is when the fruit has matured but the flesh is still firm – postharvest ripening needs to occur in order to prevent the crop from going bad, as it does with fruit like the regular kiwi, mangoes and bananas. Kiwi berries typically soften within three to five days at room temperature and are nearly spoilt within a week's time.

Significant challenges thus exist with online sales due to the fruit's short shelf life. Fan's company occasionally received complaints from people who bought kiwi berries online after receiving fruit that had gone bad, which underscored the urgency of preserving their commercial viability as they make their way from the orchards they are grown in to consumers' homes.

Fan embarked on a race against time in order to address the situation, streamlining harvesting, cleaning, screening, and warehousing into a swift process that lasts a total of two hours. He stifles production of ethylene, the naturally occurring hydrocarbon hormone that triggers ripening, in the fruit via cold storage and employs other strategic tactics in order to outpace the fruit's natural maturation process, maintain freshness, and extend its shelf life.

The entrepreneur has recognised the delicate balance between nature’s timing and consumer satisfaction, and his commitment to producing standardised agricultural products has been the cornerstone of his brand building strategy. An encounter with a customer’s sour critique on an e-commerce platform served as a poignant reminder of the importance of delivering quality goods. Fan, therefore, began renting a cold storage facility in Shanghai in order to improve the consumer experience and combat negative perceptions. Meticulous final ripeness and packaging assessments are also conducted onsite, ensuring that only the finest kiwi berries reach discerning consumers.

Fan remains steadfast in his belief that exceptional quality and service are the keys to securing stable sales despite challenges that are inherent to maintaining standardised products.

Negligible distribution costs exist for electronic data products in the realm of e-commerce. Extending to physical goods to a large degree as well, online platforms enable consumers to enjoy low shipping costs.

The perishable nature of agricultural products, particularly fresh ones, necessitates frequent transactions if industrial development is to be sustained effectively, and the high-density populations and concentrated living patterns prevalent in large and medium-sized cities align perfectly with necessary demand. These areas can thus serve as a robust foundation for agricultural e-commerce growth.

Sufficient supply and timely distribution are also imperative given consumers' continuous demand for agricultural products. Efforts to connect e-commerce logistics systems with urban infrastructure aim to expedite delivery times, ensuring seamless access to fresh produce.

Emerging business entities can cater directly to consumers' needs, be it in terms of production volume, product quality, or personalisation, in this type of digital landscape. Adoption of e-commerce formats streamlines the multi-level agricultural product wholesale process, eliminating unnecessary intermediaries and enabling agricultural entities to retain a larger share of profits.

Source:

AliResearch

Administration and Management Institute of Ministry of Agriculture and Rural Affairs