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亿万28: Platform Advantages Analysis

Published: May 10, 2026 | Source: 亿万28 News

  Generally speaking, March and April are another peak season for apple sales. However, since the beginning of spring this year, news and reports of sluggish apple sales have been frequently seen in the media and social networks. 
  Recently, the Ministry of Agriculture has decided to organize an apple e-commerce sales month activity nationwide, with sales from April 3rd to May 3rd. 
  It is reported that Alibaba Group, JD.com Group, Suning Cloud Commerce Group, and many other e-commerce companies participated in the 'Apple Sales Month Action'. Data released by the Ministry of Agriculture shows that within three days of the launch of the apple e-commerce sales month action, Suning has sold 3.075 million kilograms of apples, JD.com has sold 110,000 kilograms, and other e-commerce platforms are also connecting with production areas and fruit farmers. 
  As a traditional fruit with high nutritional value, suitable for all ages, why did apples encounter 'inventory困' in 2015-2016? How effective is selling apples through the internet and e-commerce platforms? Recently, a reporter from 'China Science News' interviewed relevant parties. 
  Why are apples selling slowly? 
  Wang Shuguang, a fruit farmer in Dangshan County, Anhui Province, has finally breathed a sigh of relief these past few days. He planted more than ten mu of apples. The apples were harvested in mid-September last year, but only half have been sold until recently. 'The sluggish sales situation has eased a bit these past few days. Ground apples are basically finished, and there are still cold storage apples left to sell,' he told the reporter from 'China Science News'. 
  In Wang Shuguang's impression, this year's apple prices are the 'cheapest in recent years.' A year ago, during the 2014-2015 sales season, apple prices hit their highest point. 'Last year, apples were sold for 2.6 yuan/jin, and this year they are sold for 7-8 mao.' 
  Why are local apples selling slowly? Huo Xuexi, a professor at the School of Economics and Management at Northwest A&F University of Science and Technology, told 'China Science News' that this is a 'common problem' not only in apples but also in the production of high-value agricultural products in China. 
  'In a production situation dominated by labor input, high-value-added agricultural products are very beneficial for increasing farmers' income. Driven by high industrial comparative benefits, farmers' enthusiasm is high, which is the fundamental driving force,' said Huo Xuexi. 
  'Because fruits like apples have obvious benefits for increasing farmers' income, various regions have vigorously promoted planting. Currently, the planting areas for apples are no longer limited to advantageous production areas. There is a certain degree of blind planting. The expansion has led to a significant breakthrough in the boundaries of previously established apple advantage production areas. Some apples are planted in non-suitable or sub-suitable areas, which is also a very important reason,' said Huo Xuexi. In addition, the cost of apple production has also continued to rise in the past decade, especially since 2007. 
  From the demand side, the income elasticity of apple demand is relatively large. In other words, apples are not like grains, which are necessities; they can be eaten or not. 'In the new normal of China's economic development, when people's income growth is relatively slow, domestic demand for apple consumption is insufficient,' said Huo Xuexi. 'At the same time, affected by cost increases, apple exports from production areas are also affected.' 
  According to a previous report from the U.S. Department of Agriculture, China's apple production in 2015-2016 was predicted to be 43 million tons, a year-on-year increase of 5%. At the same time, it is predicted that China's imported fruits this year will increase by 50% year-on-year, reaching 100,000 tons. 
  In addition, farmers 'hoarding' is also one of the reasons for the current sluggish sales in some areas. Wang Shuguang revealed to the reporter that because last year's apple prices were very high, many local fruit farmers hoped to sell apples at the same high price when harvesting this year. Therefore, there was a mentality of 'reluctance to sell,' leading to a significant reduction in buyers and sales volume. 
  Apples are still not cheap, why? 
  While Wang Shuguang's apples are selling at historical low prices, the apple prices in the market seem to be unaffected. 
  A reporter's visit to several supermarkets in Beijing found that apples priced at 4-5 yuan/jin are the average price, while apples with better appearance still maintain high prices. Many netizens also said that although there are many apples at low prices in production areas, the apples they eat 'still cost a few yuan each.' 
  According to the national apple market price information provided by the China Fruit Circulation Association, on April 1, 2016, the national wholesale average price of Fuji apples (200mm, Grade II and above) was 6.99 yuan/kg, and on April 12, this price was 6.24 yuan/kg. 
  The reporter learned that apples go through multiple links from the tree to the sales terminal, including agents, packing, transportation, storage, wholesale, and merchants, and each link incurs costs. 
  'Our logistics costs are very high, and this part of the cost accounts for about 17% of the terminal sales price,' Huo Xuexi told the reporter. 'In European and American countries, this proportion is 7%-8%.' 
  Although e-commerce sales, which go directly from production areas to consumers, reduce some links, the logistics costs for cold chain and delivery are very high. A market manager from a well-known e-commerce platform also revealed to the reporter that when transporting fresh produce like apples, packaging materials must be used to ensure cold and fresh preservation, with packaging costs ranging from 4 to 8 yuan. In the delivery process, the 'last mile' delivery cost from centralized warehouses to consumers is also extremely high. 
  In addition to logistics costs, real estate and labor costs in large and medium-sized city retail channels are also reasons for the high retail prices of apples at the consumer end. In other words, the considerable store rent, personnel expenses, etc., are all included in the apple's selling price. 
  In addition, according to media reports, although the state does not allow supermarkets to charge entry fees or stocking fees for agricultural products, in practice, if entering a supermarket or wholesale market, there are stall fees and entry fees, which are still a default unavoidable expense. 
  All these costs are ultimately passed on to consumers, causing the price of apples to soar after several transfers from the field to the consumer. 
  Is e-commerce promotion of apples feasible? 
  About 20 days ago, it was the most severe period of sluggish apple sales in Dangshan County. Seeing apples rotting in the fields, fruit farmers were extremely anxious. 'Some fruit farmers had only a dozen catties left from a box of 40 catties of apples,' said Wang Shuguang. Anxious fruit farmers posted information about sluggish apple sales on Weibo, WeChat, etc., and he was one of them. At the same time, he also sold apples through online channels such as WeChat stores and WeChat Moments. 
  'The effect is quite significant,' said Wang Shuguang. 'Now goods are moving through various channels, with large trucks coming to pick them up, express delivery, and all sorts of methods.' 
  It is reported that Dangshan County has an apple planting area of 100,000 mu. 40,000 mu of early and mid-season varieties have been sold out. The late-season Fuji variety has 60,000 mu, with a yield of about 150 million kilograms. The unsold ones currently belong to this category of apples. 
  From the perspective of natural conditions, Dangshan, the 'hometown of fruits,' belongs to a sub-optimal growing area for apples. Compared to advantageous areas, the quality of the fruit is not superior, making it difficult to sell at high prices in the market. 
  'Dangshan apples have a small planting area and are inherently a weak industry with insufficient conditions for brand cultivation. As for improving apple quality, since the low-end market was profitable in previous years, fruit farmers lack the motivation to change,' said Zhu Qigao, director of the Dangshan County Apple Industry Development Service Center. When apple prices were high, Luochuan and Yantai apples could generally be sold for 8-9 yuan/jin, while the highest purchase price for Dangshan apples was no more than 4 yuan/jin. 
  In fact, nationwide, apples produced in advantageous areas, with good quality and high brand recognition, are selling very well and have been basically sold out. Although prices have fallen back, the decline is not significant, which is a 'normal return' of prices. 
  The current 'tough nut to crack' in apple sales is mostly located in sub-optimal areas, or in advantageous areas but with poor management and operation. Various reasons have led to a large drop in prices and poor sales for these apples. 
  The 'Apple E-commerce Sales Month Action' organized by the Ministry of Agriculture aims to solve a large part of the sales of these types of apples. According to the issued notice, this activity aims to further promote the Ministry of Agriculture's relevant agricultural e-commerce action plan and fully leverage the important role of e-commerce in precisely matching supply and demand, reducing circulation costs, and promoting agricultural supply-side reform. Participating e-commerce will operate on the principle of breaking even with small profits and multi-party win-win, allowing fruit farmers in apple-producing areas and the vast number of consumers to share the fruits of 'Internet + Agricultural E-commerce.' 
  Regarding organizing e-commerce sales of apples, industry insiders told reporters that it is a 'good thing' for fruit farmers, but how to do a good job of quality control is crucial. 
  A reporter opened the apple sales page of an e-commerce platform and found that the lowest selling price of apples was 4 yuan/jin, and there were negative reviews from consumers such as 'all rotten' and 'mushy.' 
  'For e-commerce, product quality and building trust are very important,' a reluctant expert told reporters. 'The desire to help sell apples is good, but it may be difficult to truly solve the problem.' (Hu Xuanzi)

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