Exploring the four "Internet +" blue ocean markets in the three rural areas

[ China Agricultural Machinery Industry News ] Recently, the Central Document No. 1 was officially issued in 2017, and the “agricultural supply side structural reform” became the main line of agricultural and rural work this year. Judging from the essentials of the document, the state hopes that through the adjustment of the agricultural structure, the agricultural production will be dominated by quantity, gradually shifting to quantity and quality, and paying more attention to efficiency and green environmental protection.

From the specific measures, the following aspects can be included. First, in terms of system, promote the transfer of rural land management rights; second, in terms of structure, adjust the policy of purchasing and storing agricultural products according to supply and demand; third, in terms of infrastructure, increase land remediation and construction and investment of rural production facilities; In the business model, it has been transformed from traditional decentralized agriculture to large-scale and intensive modern-scale agriculture. Fifth, in terms of production concept, vigorously promote green production, increase agricultural waste disposal and land protection.

Exploring the four "Internet +" blue ocean markets in the three rural areas

The transformation of the development concept will certainly drive changes in China's agricultural development mode, product structure, business structure, regional structure and industrial structure, and will also bring new opportunities for financial services and innovation. In combination with policy orientation, in terms of market potential, in addition to consumer goods going to the countryside and agricultural products entering the city, the three rural areas are also gestating “Internet + land”, “Internet + agricultural market”, “Internet + agricultural resources” and “Internet + consumption”. The four major blue ocean markets of finance are yet to be further explored.

First, the "Internet + land" market

Land is a valuable asset for farmers and a large gold mine in the financial sector of agriculture, rural areas and farmers. According to statistics, the value of land that can be transferred in rural areas in China is about 100 trillion yuan. However, due to unclear land attributes and policies, this huge capital has been sleeping. In order to better revitalize the stock of land resources, the 2016 and 2017 Central Document No. 1 and the “Government Work Report” continuously focused on “land transfer”. In November 2016, the General Office of the CPC Central Committee and the General Office of the State Council issued the Opinions on Improving the Separation of Management Rights of Rural Land Ownership Contracting Rights. The favorable policies for agriculture-related land are frequent, especially the confirmation of the “separation of the three powers” ​​will bring huge new market opportunities.

Specifically, the “Internet + Land” market has three major gold mines. The first is the traditional pledge financing, that is, the financing of farmland property rights as a qualified mortgage guarantee. Taking the mortgage of farmland contractual management rights as an example, according to the 10-year mortgage period, the average value of the mu value of 800 yuan/year, and the 50% mortgage rate, the mortgage market of the 126 million mu contracted land management right will exceed 600 billion. The second is property rights trading services. Taking the farmland contracting rights management transfer market as an example, the land that has already been transferred has an annual rent payment market of RMB 420 billion. The third is land remediation, reserve and land management financing. Taking the financial needs of homestead rectification as an example, according to the 126 million mu into the rectification market, the cost of rectifying the project will be 180,000 yuan per mu, and 20% of the project's own funds will be calculated, and the financing demand will be as high as 18 trillion yuan.

Second, the "Internet + agricultural approval" professional market

In recent years, under the impact of Internet technology and e-commerce, a large number of domestic apparel and hardware professional markets have begun to shrink. However, due to the non-standard attributes of agricultural products, as well as a series of factors such as cold chain, logistics and warehousing, the proportion of e-commerce transactions in agricultural products trading is less than 2%. The professional market model is still dominated by domestic agricultural products trading. According to statistics, from 2000 to 2013, China's agricultural wholesale market of more than 100 million yuan grew rapidly from 1,142 to 1,708 in 2013, and the turnover increased from 36.65 billion yuan to 2.26 trillion yuan. The average annual market turnover was The rapid growth of 321 million yuan to 1.324 billion yuan, the scale and amount of transactions continued to expand.

At the same time, driven by the "Internet +", the professional market has gradually begun to transform from a simple service model based on booth rent in the past to a smart service model that provides professional "Internet + Internet of Things + Big Data". Big data laid the foundation for online financial services. According to statistics, 70% of professional market customers are self-employed and 30% are small businesses. 90% of the origin brokers have a seasonal financing requirement of 10-5 million yuan, and 70% of the sales dealers have a seasonal financing demand of 5-20 million yuan. Because such customers “have no fixed assets, no collateral, and unregulated financial statements”, the traditional financial licensing model is difficult to access. However, through the electronic payment tools and platform embedding, based on the merchant's invoicing data, the company conducts seasonal financing services based on transaction flow measurement, providing “1+N” network industry chain financial services for the upstream and downstream of large professional markets, and The market's warehousing and logistics provide supporting financial services, all of which will have broad development space.

Third, the "Internet + agricultural resources" market

As the basic production materials for agricultural cultivation, seed, pesticide and fertilizer are three major categories of agricultural products that are essential for agricultural production. Under the traditional mode, the circulation of agricultural materials needs to go through various links, such as manufacturers-provincial branches-county-level distributors-township/village agent-customers, and increase the price of each link, such as the increase of fertilizer from the factory to the farmers. More than 80%.

The pain point is business opportunity. As consumer goods go to the countryside, the agricultural resources are also booming. According to statistics, the annual consumption of China's agricultural resources market is about 2 trillion yuan. The agricultural and commercial e-commerce platform at all levels reduces prices through online orders and intensive distribution reduction, and provides more direct technical services through online and offline linkages, and implants functions such as finance and agricultural products sales. The traditional agricultural resources are being heavily weighted by the Internet. Construction and subversion. Ruyun Farm has established an online agricultural trading and technology service platform to provide farmers with various value-added services such as fertilizer, seeds, pesticides, agricultural machinery trading and soil testing and fertilizer, agricultural technology services, rural logistics, and customized agricultural products. At present, more than 200 county-level service centers and more than 20,000 village-level service stations have been established, covering millions of farmers in Shandong and Henan provinces. At the same time, taking advantage of the big data of the cloud farm platform, the joint Huaxia Bank (600015, stock bar) provides farmers with big data-based online financing services to meet the seasonal financial needs of traditional agricultural assets. In addition, a series of agricultural resources platforms such as Tiantian Circle and Nongyi.com have been launched, and internal financial services have been introduced to explore the trillion-dollar agricultural resources market.

Fourth, the "Internet + consumer finance" market

Compared with the development of urban consumer finance, there is still a big gap in the rural area. However, with the acceleration of the peasant citizenization process and the release of policy dividends such as land confirmation and “two powers” ​​mortgages, rural consumer finance has emerged. In 2016, the State Council issued the “Notice on Implementing Several Fiscal Policies for Supporting the Urbanization of Agricultural Transfer Population”, and clearly proposed ten specific policies and measures to support the urbanization of agricultural transfer population. From 1978 to 2014, China's urbanization rate increased from 17.9% to 54.8%, with an average annual increase of 1.02 percentage points, and the urban resident population increased from 170 million to 730 million. However, due to the restrictions on the household registration system, nearly 300 million migrant workers and other permanent residents have not enjoyed the same public services and citizen rights as local urban residents.

According to statistics, under the premise of complete urban infrastructure, every time a farmer is transformed into a city resident, an average cost of 25,000 yuan is required. In the future, 300 million farmers will enter the city, which will generate a large amount of consumer credit demand in the fields of housing, decoration, automobile, education, leisure and entertainment. At the same time, around the peasant citizenization and equalization of public services, there are also a large number of non-credit business needs in the fields of education, medical care, social security, payment, payment, settlement, wealth management, and compensation for demolition. From the perspective of peasant assets, the confirmation of rural land provides collateral such as land and homestead for peasant consumer finance. From the perspective of farmers' income and growth rate, the per capita disposable income of rural residents in 2015 was 11,422 yuan, an increase of 8.9% over the previous year, which injected strong momentum into consumption. The expansion of rural netizens and the gradual improvement of data and credit systems have made it possible to develop online consumer finance business.

Looking forward to the future, with the issuance of the No. 1 document, under the promotion of policy dividends such as land security and rural population citizenship, “Internet + land”, “Internet + agricultural market”, “Internet + agricultural resources” and “Internet +” Consumer finance has broad market potential.


(Original title: Opening up a new blue ocean for the reform of the agricultural supply side structure with Internet finance innovation)