Zhangzhou offers multiple incentives to drive market demand in face of difficulties

While the international and domestic economies are still challenged by the COVID-19 pandemic, authorities in Zhangzhou, a coastal city in East China's Fujian province, have kept the local economy afloat with e-commerce and marketing.

In the city's Minnan Wholesale Market, home to more than 1,000 merchants operating in a range of sectors including garments, cosmetics, daily goods and food, the use of livestreaming shows has brought unexpected benefits.

Wang Zhengwei, a manager of a women's clothing shop at the market, said he began trying livestreaming weeks after the novel coronavirus swept through China.

"When the virus broke out in the beginning of this year, we had to close our shops for disease prevention and control," Wang said.

"We used to focus on offline sales, but we had to start pushing online sales to avoid losses."

Wang said most of the merchants in the market－including himself－had no previous experience in online sales.

Fortunately, the government offered a helping hand by holding various training sessions for the merchants.

Cooperating with local tech companies and training institutions, the city's bureau of commerce began the sessions during the first quarter of this year.

"We were told at the training sessions that livestreaming is an effective way to keep in touch with clients and sell goods during times of emergency," Wang said.

"Neither the dealers nor clients were familiar with livestreaming at the beginning." Wang said, adding that only one or two people a day watched the early days of his livestream.

"We informed our clients about the livestreaming shows through WeChat. The number of viewers gradually increased and now we have 500-1,000 views a day."

The manager found livestreaming an effective channel for sales.

"We have all the clothes tried on in front of the camera, allowing our clients to judge which one best suits them," Wang said.

He added that the livestreaming shows have attracted not only individual buyers, but also retailers. "We currently sell more than 1,000 sets of garments a day, a number far beyond our expectations."

While livestreaming sales help small businesses reduce their inventory and increase cash flow, the practice is also seen by bigger companies as a new way to enhance market presence.

Dai Yanzhu, a sales manager of textile producer Gold Shell Home Textile based in Zhangzhou, said larger manufacturers in Zhangzhou now see livestreaming as a channel for building connections with customers and increasing sales.

"We have well-arranged showrooms for our products at our brick-and-motor outlets," Dai said. "However, the number of visitors to these outlets is limited, even when COVID-19 is under control."

"All the showrooms have been brought online via livestreaming, allowing more customers to experience our products and services," the manager explained.

Farmers in Zhangzhou are also encouraged to use e-commerce platforms to sell their products.

In Banzai, a township in Zhangzhou's Pinghe county, local farmer Wei Baoyu went to work on his honey pomelo orchard, bringing with him a mobile phone for livestreaming.

Banzai township is a major honey pomelo production site in Pinghe. The high quality of the produce there is well-known and recognized throughout the country.

Over the past few years, the farmer has grown into an experienced salesman, using various internet platforms to promote his produce.

"When a harvest is approaching in late autumn, it's the best chance to show off the quality of the honey pomelo to buyers," Wei said.

"I show them the size of the fruits and the organic fertilizers piled beside the orchard. This is the best demonstration for those who really want to buy high-quality, organic food."

Through livestreaming, Wei has received orders from across the country and even overseas.

"At the beginning, the other villagers who saw me taking pictures at the orchard thought I was being lazy," he said. "But when they realized I was making a fortune, they came to ask me how to sell products through e-commerce."

Thanks to Wei's example, other villagers in Banzai have tried new ways to do business. They have developed into online merchants of various local produce items.

According to the city's bureau of commerce, Zhangzhou's commodity transaction value via e-commerce totaled 38.16 billion yuan ($5.84 billion) during the first three quarters of this year, growing 21.3 percent year-on-year. Transactions of farm produce via e-commerce reached 2 billion yuan, up nearly 40 percent from the same period last year.

In addition to the promotion of e-commerce, authorities in Zhangzhou have mapped out other effective measures to stimulate market demand. The measures include policies to encourage the development of the city's nighttime economy and issuance of coupons to residents for shopping.

The Zhangzhou Food Carnival, which was held in August, was part of the local government's efforts to promote its nighttime economy. More than 70 renowned local food varieties were made on-site at the Western Square of Zhangzhou Ancient Town, attracting hosts of diners.

Through November, Zhangzhou had offered 100-million-yuan worth of coupons to residents, leading to a total of 3.67 billion yuan in spending on consumer goods.

The government had also offered 20 million yuan in first-time car purchase subsidies, resulting in a 9.1 percent year-on-year vehicle sales increase during the same period.

Clockwise from top: Zhangzhou's officials and business representatives launch a shopping festival in August. Local residents watch a show during the shopping festival. Wu Lingzhen (left), head of the Zhangzhou bureau of commerce, promotes local products at a livestreaming show. ZHANGZHOU BUREAU OF COMMERCE