Seed China News 1504 (12 issues per year)

Date: 2015-05

“In recent years, with the revolution of the traditional marketing modes (distribution level by level and sales in retail stores), Chinese seed enterprises are further enhancing innovation on marketing modes.
There are four new representative marketing modes in Chinese seed industry:
First of all, farmers book seeds after visit the seedling samples. Many seed enterprises grow their seeds elaborately and then organize farmers for spot visit. They sign advance sale agreements with farmers.
Secondly, seed enterprises sell seeds under the precondition of booking the agricultural produces. That is to say, seed enterprises with high-quality varieties sell their seeds directly towards larger farms and they purchase agricultural produces from large farms to ensure sales of seeds.
Thirdly, seed enterprises enhance promotion through visible media. Some seed enterprises cooperate with media institutions such as TV stations and make advertisements for their varieties and services.
Fourth, seed enterprises combine with e-commerce platform and real stores. Seed enterprises take full advantages of the internet and do e-commerce. Meanwhile, they change the functions of their real stores from sales to experience and service and they also provide whole-process solutions to farms.
These new marketing modes are popular among farmers since the after-sales service is enhanced, the distribution links are reduced and farmers can gain more profits. At present, the new marketing modes are harmonizing with the traditional ones. Maybe someday, after times of challenges, the new modes will take the places of the traditional ones.
The USD/RMB exchange rate in this report is USD1.00=RMB6.1434 on 1 April, 2015, sourced from the People’s Bank of China. All the prices mentioned in this report will include the VAT unless otherwise specified.

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