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Success belongs to the nimble

By Hu Yuanyuan | China Daily | Updated: 2020-11-23 09:40
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A livestreaming e-commerce team in Nantong, Jiangsu province, introduces products to customers. Livestreaming is a marketing avenue small business owners latch onto. [Photo by Xu Peiqin/For China Daily]

"I rented a kiosk near my community for about 15,000 yuan a month," he said. "I've had gross profit of about 30,000 yuan a month, and if everything goes smoothly, I'll be breaking even in two to three months," Sun said in an interview in May.

However, again reflecting the unpredictable times, the pandemic in China ebbed just as Sun's business was about to break even, and demand for community catering services slumped.

"Nevertheless, I built up a customer base for the several months I ran the catering delivery services. I then switched from fast food to special local products, such as lamb slices from the Xiliin Gol grassland in the Inner Mongolia autonomous region and potatoes from Zhangjiakou in Hebei province."

Sun has now taken on the mantle of "Delicious Food Mover for Communities", managing 16 WeChat groups that cover 11 communities in Wangjing area of Beijing, with an average of about 300 people in each group.

Therein lies the trick, for group purchasing power is not to be sniffed at, Sun said. For example, he sold his full inventory of more than 100 free-range chickens from Inner Mongolia within two weeks.

"The online group purchase mode gives small concerns from second-and third-tier cities a chance to enter big markets at low cost, and is also a win-win deal for group purchase managers, customers and local special producers," Sun said.

His WeChat groups helped farmers in Zhangjiakou sell more than 1,000 kilograms of potatoes in the first 10 days or so of November, and by the end of the month that figure is expected to be 3,000 kg.

"Local wholesalers usually pay farmers 0.4 yuan to 0.6 yuan for half a kilogram, and we pay them about 1.2 yuan," Sun said. "They retail at 3 yuan for half a kilogram, compared with the average market price of 7 yuan."

For WeChat group purchase managers, the most attractive thing about the business model is the very low cost, important especially in times such as these.

Sun said he usually opens the group purchase program on work days, with the program counting the number of people who have placed orders. Customers have enough trust in him to pay for goods in advance, and Sun buys the local specialties with those funds and delivers on weekends, meaning there is no capital outlay.

The biggest challenge, Sun said, is to find suppliers of local specialties of very good quality and that are strongly competitive.

In addition to expanding the quality products he offers to group customers, Sun is cultivating his personal account on Douyin, hoping to try livestreaming e-commerce, thus he can combine the offline mode with the online one.

"It's been extremely difficult for me this year, but you have to keep on trying and seizing every opportunity that comes along and go for it. Otherwise the chances for success will drift away."

In these straitened times, livestreaming is a marketing avenue small business owners have latched onto, a method that a recent report by Nielsen said is supported by innovative online channels and the accelerated shift toward online consumption.

The annual value of livestreaming e-commerce is likely to be 961 billion yuan this year, or about 10 percent of all e-commerce in China, the report said, with 265 million users, accounting for 47.3 percent of livestreaming users.

Zhang Chenggang, an associate professor at the Capital University of Economics and Business in Beijing, said that the number of people engaged in new occupations, such as online shop planner and digitization service provider, has rocketed. With a flexible mode, new professions are playing an increasingly important role in creating jobs.

From January to September, 8.98 million new urban jobs were created, almost reaching the annual target of 9 million in this year's Government Work Report. The surveyed unemployment rate in urban areas was 5.4 percent in September, compared with the year's target of about 6 percent, the Ministry of Human Resources and Social Security said.

Meng Qingwei, deputy director of China Talent Research, said market demand based on technological innovation and social changes are leading to new occupations. Sixteen new occupations have been identified by the China Employment Training Technical Instruction Center, part of the Ministry of Human Resources and Social Security, this year.

Zeng Xiangquan, director of the China Institute for Employment Research at the Renmin University of China in Beijing, said flexible employment, in which employees are not bonded with a particular employer but are free to earn income from multiple employers as matched by a public platform, has great potential.

The internet company Alibaba, for instance, has 110,000 employees but has spawned more than 40 million jobs including online retail vendors and couriers, according to industry figures. The digital cultural platform China Literature has only 1,300 workers but has 8.9 million literature creators.

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