E-commerce emerges in Deqen

Deqen lies on a plateau with an average elevation of more than 3,000 meters. [Photo: www.diqing.gov.cn]

Way up high on a plateau in southwest China is one of the country's most famous tourist attractions – the Deqen Tibetan Autonomous Prefecture.

But while it might be a draw for visitors far and wide, when it comes to its economic and social development, Deqen lags far behind the eastern and southeastern coastal regions – China’s wealthiest parts.

As well as the tourism sector, the local authorities have been promoting e-commerce in an effort to drive local development and increase villagers’ incomes.

Senjinida is a state-owned bio-resources development company in the city of Shangri-La, which is administered by Deqen. 

Founded in 2014, the company buys raw agricultural products from local villagers and processes them before delivering them to regions beyond Deqen.

An Weng, vice general manager of the company, says it’s been making use of e-commerce channels and modes to conduct business since it started up.

“At the moment, we are the first and only company in the city of Shangri-La whose products are traceable. Each of our products has an identification number – a QR code. 

“By scanning it with a cell phone, you can find out the whole process, from the original material to the end product, such as its growing environment, quarantine information and so on. With this system, we aim to provide quality and safe products to our customers.”

As well as Senjinida, there are currently about 80 companies in Deqen that have got themselves involved in e-commerce, with another 400 individuals or entities running online stores, according to local officials.

Last year, total online sales volume amounted to 100 million yuan, some 15 million US dollars, of agricultural products like yak meat and honey, and an industrial product – in this case, cement.  

Shi Dingxiong, deputy director of Deqen’s bureau of commerce, says the local e-commerce sector is still in its infancy stage.

“It’s only in recent years that e-commerce has emerged in Deqen. But we haven't seen it develop as much as we expected. Many officials who are in charge of commercial affairs aren't familiar yet with this new sector – they have a simplistic view of it and haven't made enough efforts to promote it.”

Local officials have identified difficulties in logistics and a lack of talent as the two key factors that are hindering the development of e-commerce in the region.

Deqen lies on an average elevation of more than 3,000 meters.

The costs of transport to and from the area are high, as it depends on vehicles and planes with no railways linking it to the outside world.

This situation is not likely to change until 2020, when the Lijiang-Shangri-La Railway is due to be completed.

And although flocks of tourists manage to get to the plateau every year, the harsh natural environment is a hindrance to people from other regions coming to do business there.

Because of all this, Shi Dingxiong says officials are trying to cultivate a culture of selling and shopping online among locals.

“We are conducting large-scale training, teaching local villagers how to get involved in e-commerce. We are enlisting young people and college graduates who have returned from outside to become trainers in this project. 

“The awareness of e-commerce in the rural region is crucial for the sector’s development in Deqen.”

Local officials are hopeful that the development of e-commerce will increase sales of local agricultural products, which they say are pollution-free and come mainly from the wild.