17 pesticide manufacturers announced prohibition of internet sales in China
Date:04-25-2016
2016 saw a gradual regression of agricultural e-business after 1 year’s overheated promotions and pesticide enterprises have returned to rational; also agricultural material dealers have refrained themselves from looking for internet sales. Just in this March, 17 pesticide companies in Chinese agricultural material market happened to make a statement to prohibit internet sales, which looked as if they would ban agricultural e-business.
The 17 companied include foreign enterprises - Syngenta, DuPont, Bayer CropScience, FMC, Yara, Mesa and Chinese enterprises –Bosswell, North China Pharmaceutical Group Aino, Lier Crop, Shanghai Shengnong, Shaanxi Meibang, Shaanxi Sunger, Shaanxi Welch, Shaanxi Thompson, Shanghai Huiguang, Beijing Xinhefeng and Qingdao Hailir.
The statements made by the above companies are more or less the same, saying that the company has received complaints on the pesticide sold via internet. Since the company has never delegated any dealers to sell its product on internet, the company is not responsible for problems occurred to the product purchased on internet.
In view of the above actions from these companies, industry practitioners hold the view that these agricultural material vendors have failed to fully recognize the value and advantages of e-business. With the popularized internet service in rural area, rural e-business contains huge business opportunities. Apart from product sales, e-business can raise efficiency of operation, quality of farming, service level and reduce cost of business operation. These companies see just one side of the business only from the sales point of view, but do not think about farmer’s service experience and how vendors should make improvement. The statements by the companies are regarded as a reflection of the “stand still” way of thinking of these enterprises.
Since Premier Li Keqiang put forward the “Internet +” initiative on the 5th March 2015, Chinese agricultural material business environment has changed profoundly, as influenced by the initiative. Over the last 1 year, government has released series of policies in support of the agricultural material e-business. In late March 2016, Chinese Ministry of Commerce issued the “2016 e-business and IT work focus”, which is a clear instruction for the initiative of “speeding up rural e-business deployment”. This is understood as a good sign in favor of start of agricultural material e-business.
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