Alibaba to Invest More to Help Boost Presence in Rural Areas
Alibaba Group stated that it would continue to make more investments that will boost their presence in rural areas. Alibaba announced a 10 billion yuan rural investment plan that considers adding more steps in improving the living conditions of farmers. Alibaba also launched the first Stocking for China’s Lunar New Year Festival program during an e-commerce summit in Yan’an in which the program enable farmers to sell agricultural products in different cities using the Alibaba platform.
By modernizing agriculture is said to be the key to the economic growth in China for the next two decades, wherein farmers make full use of the Internet including big data that will help out farmers out of poverty. Furthermore Jack Ma said that the program is aimed to tap into the entrepreneurial potential of around a million rural migrant workers who returned from cities to their home village to start their own businesses. This is not the first time that Alibaba brought such importance to agriculture and rural networks, just last October the company spent 10 billion yuan in the next five years on 1,000 operational centers in counties and set up 100,000 service outlets in villages. Under the rural marketing strategy of the company, by targeting rural people as potential buyers and sellers to bring in revenues.
Sun Lijun the vice president of Alibaba is in charge for the rural plan and stated that the company has established a rural retail networks in 23 provinces and autonomous regions and they have spent money mainly in three sectors namely infrastructure construction such as logistics networks, service centers and talent training. But the biggest investment will fall on people as the company will make great efforts in training talent that have the enthusiasm and ability to work in rural areas having knowledge in e-commerce. Sun said that the 10 billion yuan investment is still is not enough and the company will continue to invest in the sector.