| A Study on the Online Marketing for Agricultural Products | |||
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| Author | Choi, Jongwoo | ||
| Views | 54523 | Publication Date | 2018.03.14 |
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Background and Objective ○ Transactions of agricultural products are mainly made through the distribution path from wholesale markets to retail shops, that is, ‘farmer-local seller-wholesaler-retailer-consumer.’ For the representative agricultural products, that is, fruits and vegetables, wholesalers handle more than 71% in the wholesale markets after marketing by farmers, and this implies transactions in the wholesale markets still play an important role in distribution of agricultural products. - However, while conventional transactions through the wholesale markets ensure transparency and fair transactions, many distributors are involved in the wholesale stage to result in complicated transactions, and transaction fees claimed in each transaction step. This reduces farmer’s income, and is a main reason for increasing retail prices. ○ As described above, transactions of agricultural products are made offline, for example, transactions with large scale distributors, and transactions directly with consumers in addition to the conventional transactions through the wholesale markets. Recently, online transactions of agricultural products are increasing thanks to fast IT technology development and propagation, convenience and speedy transactions as well as offline transactions. Online transactions can respond immediately to consumer’s consumption pattern changes, and are the most effective transaction method in terms of improvement of distribution structure and farmer’s income increase. ○ The government has recognized the importance of online transaction (e-transaction) of agricultural products, and has established some related policies. Exemplary policies include the “Plan for Promoting E-transaction of Agricultural Products (1988)” by the Ministry of Agriculture, Food and Rural Affairs (MAFRA), and “Mid-term Plan for Vitalizing E-transactions (2003)”, recent promotion of building an online transaction platform in the “Comprehensive Plan for Improving and Developing Distribution of Agricultural and Livestock Products (2014)”, and “Master Plan for Promoting Use of Local Agricultural Products and Vitalizing Direct Transactions (2016).” ○ Online transactions of agricultural products are widespread, and the government has promoted related policies. However, because online shops operated by farmers and public institutions are left behind in terms of advertisement and public relations, and do not have strategies for profit creation and operation, efficient marketing is not implemented. Therefore, it is known that sales growth is sluggish or they experience difficulty in operation. Another issue of the open market mainly by private companies is fee pricing. ○ Online transactions of agricultural products will continue because of innovative IT technology development, and consumer pattern change seeking convenience and speedy transactions. However, because the current situation of online transactions of agricultural products is not examined, it is hard to establish efficient policies on involved issues. ○ This study aims to classify online transaction types of agricultural food, examine the current situation of each type and involved issues to establish policies for vitalizing online transactions by agricultural holdings. - Specifically, analyze transaction factors as well as use of online transactions by examining current operation and involved issues by investigating agricultural holdings, central and local governments (MAFRA, aT, local governments, etc.) participating directly and indirectly in online transactions of agricultural food, and surveying consumers. - Suggest a strategy for vitalizing online transactions of agricultural food more efficiently to use the result as essential data for establishing related policies by the government on the basis of the analysis result. |
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