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E-commerce platforms help develop 'super plant' in Zhejiang

ezhejiang.gov.cn| Updated: May 11, 2020 L M S

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A worker operates a machine at a plant in Zhejiang Kaishili Technology Co, a textile manufacturer in Zhuji, Zhejiang province. [Photo/zj.zjol.com]

E-commerce platforms have been helping manufacturers in Zhejiang province to develop into "super plants" in recent years.

A "super plant" features a C2M (Customer-to-Manufacturer) business model that connects customers with manufacturers through accurate data analysis and forecasting. This means that manufacturers can produce goods and sell them directly to customers without a middleman.

Zhejiang province and Alibaba Group jointly launched a Super Plant initiative in late March to drive the digitalization of local manufacturers and enhance their competitiveness. The aim of the initiative also involves building 100 "super plants" in Ningbo, Wenzhou, Jinhua and Taizhou.

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Socks made by Zhejiang Kaishili Technology Co [Photo/zj.zjol.com]

Taobao, Alibaba's e-commerce platform, announced on March 26 that it will help 1,000 manufacturers develop into "super plants" that are each valued at more than 100 million yuan ($14.14 million) in the next three years. The platform has also set a target of helping these plants gain 10 billion yuan worth of orders and building 10 digital industrial clusters valued at more than 10 billion yuan across the country.

In addition to Alibaba, Pinduoduo and Vip.com have signed cooperation agreements with Ningbo and Wenzhou to build "super plants".

"E-commerce platforms wish to send feedback from the market to manufacturers so that the latter will provide more ideal products," said Lyu Miao, a senior economist from the Yangtze Delta Region Institute of Tsinghua University, Zhejiang.

"The cooperation between e-commerce platforms and manufacturers will help promote Zhejiang-made products and boost the development of local manufacturers," said Yue Yang, deputy director of the provincial economy and information technology department.

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A product designer draws design sketches for socks at Caramella, a textile manufacturer in Zhuji, Zhejiang province. [Photo/zj.zjol.com]

     
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