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Technology, smart ideas mean opportunity
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EVERY day before leaving her office, Ye Shuliang orders vegetables and meat on her smartphone, which is delivered to her home within an hour. The food is from a market close to her apartment and costs less.
Ye is taking advantage of Cai Yi Gou, a new online to offline (O2O) service that isn’t all that high-tech but is rather practical. Customers order and pay via WeChat, the company purchases the food in a nearby market and delivers it to the customer’s home.
For now, the company only covers Jianggan District in Hangzhou and food is purchased in Hangzhou Dongming Grocery Market, a central location in Jianggan. However, the company has already received some investors and plans to expand to all urban districts in Hangzhou.
“We save money on logistics because we don’t need to store any food and vendors are willing to offer us wholesale prices because we buy in bulk,” said Lou Yingying, manager of Cai Yi Gou.
“Customers can preorder, get lower prices and save time.”
Smart technology is changing traditional industries. To sell products online is just one aspect of how innovation is altering lifestyles.
Chinese premier Li Keqiang mentioned the concept “Internet+” about a month ago in a report to the National People’s Congress.
He said China needs an “Internet+” action plan that should “go with the flow of the Internet.”
Jack Ma, founder of Hangzhou-based e-commerce giant Alibaba, recently said: “Internet+ is the largest opportunity of the time. In the next two, three decades, the opportunity belongs to those combining Internet technology and traditional business.”
The Hangzhou government has also stressed the concept, creating No. 1 Project. It has two prongs — developing information technology and promoting smart applications.
“No. 1 Project is a very important part of creating a strong economy going forward,” Party Secretary Gong Zheng said.
Mayor Zhang Hongming said Internet+ can be applied to manufacturing, management, sales, R&D, funding, and training.
The project is expected to help boost labor productivity 9 percent this year. The government expects that 75 percent of key industrial enterprises will adopt an enterprise resource planning system, and 60 percent a supply chain management system.
The project will also promote intelligent manufacturing, Internet of Things, telecommunications infrastructure, industrial design, environmental protection and integrating IT applications with industrialization.
For instance, online monitoring will be used in 318 factories that stoke 10,000 tons of coal and at least 450 projects will see robots replace workers in factories.
Last year, the total output of large-scale enterprises — the annual sales turnover of each company has to be at least 20 million yuan — in the city reached nearly 1.3 trillion yuan (US$212 billion).
Cai Yi Gou is just one of many businesses in the city embracing the “Internet+” concept.
Hangzhou Wahaha Group, one of the largest beverage producers in China, uses robots on its packaging assembly line. Television manufacturer Westlake Electronics Group is now producing electric vehicles.
Hangzhou owns about 500,000 online vendors.
Statistics from the Hangzhou Commission of Commerce show that in January and February, retail sales of consumer goods rose 5.6 percent, yet sales of commodities sold online increased 22 percent year on year.
The commission forecasts that in 2015 retail sales of consumer goods online will exceed 250 billion yuan, accounting for over 50 percent of the city’s total.
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