Start-up aims to take a slice of Beijing’s ‘vegetable basket’
COLDSKY.CN – Beijing’s Xinfadi Market (Xinfadi Agricultural Produce Wholesale Market) has recently shocked the nation as the source of second wave of COVID-19 outbreak, but nothing can change its decade-long reputation as the main wholesale market of fruits, vegetables, and meat for the capital with a population of more than 21 million.
Xinfadi Zhangxian(新发地掌鲜), an e-commerce start-up based on the wholesale market’s abundant produces, raised +10M RMB from angel investors. Yan Ming, founder of the start-up that only launched in this February, said the fund will help product R&D, marketing and talents introduction.
The company provides services to fresh food stores in neighbourhoods and end-users directly, via cooperation with express delivery companies.
Data from consulting firm iResearch showed China’s fresh food e-commerce trading volume exceeded 279.6 billion yuan in 2019, up 36.7% year on year. The coronavirus this year and the travel restrictions have led to rapid growth of fresh food e-commerce, which is estimated to hit 800 billion yuan in 2023. But challenges faced by the e-commerce stores include a long supply chain, products quality variance and higher loss rate, which all contribute to a large operation cost.
Xinfadi Zhangxian allows merchandisers to live stream their products so customers can have a better understanding of the quality.
The wholesale market has opened 14 branches nationwide and runs production bases with a total area of 200,000 hectares in major domestic agricultural regions, Xinhua reported.
More information about China’s fresh food e-commerce market/business models from iResearch(https://www.iresearch.com.cn/Detail/report?id=3620&isfree=0), translated by COLDSKY.CN