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May 6, 2024  WFP China COE  

Leading E-commerce Enterprises Bolster Local Fruit Industry

Value Chain Development for Smallholders;Rural E-commerce Promotion & Support in Less Developed Area;E-commerce;Enterprises;Story

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Lixian's Gansu Liangyuan E-commerce Co. Ltd. ("Gansu Liangyuan") and Lixian Richshine Fruits and Vegetables Co. Ltd. ("Richshine Fruits and Vegetables") were founded by residents of the county and have played an important role in the journey out of poverty that the people who work with them have embarked on.Gansu Liangyuan is located in Xinhe Village, Yanguan Town, Lixian County. It was originally a fruit cooperative led by Kang Yongliang. In early 2014, Kang Yongliang's son, Kang Weiqi, returned home after serving in the military and began participating in e-commerce entrepreneurship in response to local policies. The cooperative developed rapidly with the support and encouragement of Lixian's government and eventually became Gansu Liangyuan E-commerce Company. In 2020, the company's non-cross-border e-commerce transactions exceeded RMB39.1 million (US$6.11 million).

 

A leading e-commerce enterprise integrating production, storage, processing, and sales, Richshine Fruits and Vegetables operates the Xianpiaopiao Flagship Store on Tmall and other online stores. Founder Zhao Liang worked at Lixian's Qishan Middle School until he decided to resign in order to start a business in 2009. In 2015, Zhao started helping develop cross-border e-commerce enterprises in the county and registering them on Alibaba's international site, which was an important step in the evolution of cross-border e-commerce in its borders and played an important role in connecting the Lixian apple with foreign markets. In 2020, the company logged US$18.55 million of cross-border sales, which made it one of the top 10 exporters of fresh apples in China.

The two enterprises have utilized the "e-commerce enterprises, cooperatives, and impoverished farmers" poverty alleviation model and have achieved good results.First, growers' incomes have increased. Impoverished farmers who sell their apples to Gansu Liangyuan make an average of RMB3,000 (US$469) more than those that sell them at average market prices. Richshine Fruits and Vegetables purchases a large number of Lixian apples from farmers located in the county's apple production areas, which has benefited more than 20,000 people in nine villages and towns and boosted their incomes by over RMB4,000 (US$625) per household.

 

Second, they provide employment opportunities. Gansu Liangyuan employs an average of more than 80 people – and up to nearly 300 during peak periods – and pays them more than RMB100 (US$16) per day. It mostly recruits members of impoverished families, which has helped more than 600 households escape from poverty. Richshine Fruits and Vegetables employs more than 175 people and over 250 during peak periods and also prioritizes poverty-stricken farmers and pays them over RMB100 (US$16) per day. E-commerce teams are also composed of impoverished people. Their members earn more than RMB3,000 (US$469) a month, which helps ensure that impoverished families are able to emerge from poverty in a stable manner in their local areas.Third, they engage in various types of cooperation and help people increase their incomes through multiple channels. Gansu Liangyuan signed a poverty alleviation agreement with 10 farmers' cooperatives in 10 villages in Yanguan Town in accordance with the "e-commerce enterprises, cooperatives, and impoverished farmers" model. Industrial support funds enabled 943 impoverished households to each gain RMB10,000's (US$1,563) worth of shares and steadily increase their incomes with the dividends that they receive. Richshine Fruits and Vegetables encouraged poverty-stricken farmers to join farmers' cooperatives in line with a cooperation model involving "nursery cultivation and guaranteed sales" so that mutual benefits and win-win results could be achieved. A total of 265 households have become involved with the Lixian County Hongsheng Fruits Professional Cooperative, which has resulted in them achieving more than RMB50,000 (US$7,813) of annual income per household, thereby benefiting 1,248 people.


For more information, please contact WFP China COE(wfpcn.coe@wfp.org)

 

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