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A visit to Longxiaonan E-commerce Company’s distribution center by Justin Davis,January 07, 2021 Adjust font size:

Recently, I had the opportunity to visit Longxiaonan E-commerce Company’s distribution center in Chengxian county, Longnan city, Gansu province. The facility was clean and modern and ships high-quality goods across China. A short video introduced the organization when I entered the building and was interesting to watch. The facts, information, and images that were presented provided a good overview of the company and what it has achieved.

Longxiaonan E-commerce Company’s product display area in Chengxian county, Longnan city, Gansu province [Photo by Xu Lin/]

I was impressed by the rapid growth that Longxiaonan has experienced during the short time that it has existed and the increasing revenue that it has generated. I learned that the organization was established in a small warehouse in 2018 and that it reached 11 million yuan (US$1.68 million) of sales that year, followed by 29 million yuan (US$4.43 million) in 2019 and 40 million yuan (US$6.12 million) in 2020.

Livestreaming is a central part of how Longxiaonan markets its products. I was informed that this practice helps it attract customers and achieve steady sales volume. The approach is very contemporary and has become popular in China in recent years.

Longxiaonan E-commerce Company’s distribution center in Chengxian county, Longnan city, Gansu province [Photo by Xu Lin/]

I also found out that Longxiaonan is involved with the entire value chain that it is engaged with – production, processing, distribution and sales – and that it also sources products from various suppliers. The vertical integration that it has pursued seems like a good idea and should help the company differentiate itself from other organizations, keep costs low, increase its market share and assure quality.

I discovered that members of 222 households have directly profited from their involvement with Longxiaonan, including university students and other young people, individuals with disabilities, and left-behind women, and that many more of Longnan’s rural residents have benefited indirectly. It is nice that so many people have been able to increase their incomes and escape from poverty by working with the company and that it has an inclusive environment that makes it possible for individuals from various backgrounds to participate.

Longxiaonan applies unified branding and packaging to the goods that it sources, which forms a distinct identity and helps with marketing and sales. This decision seems to be a key part of the organization’s success.

Convenient and extensive, logistics are very good in China. I learned that Longxiaonan can rapidly distribute its products into all of China’s 34 provincial-level administrative divisions. This should help the company continue to expand and seize new opportunities.

When I walked into Longxiaonan’s product display area, I saw many types of food and beverages, such as fruit, nuts, honey, rice noodles, mushrooms, sesame, tea, rice wine, and fruit wine, as well as traditional Chinese medicine, earthenware, and other goods from the area. The consumable goods seemed healthy and nutritious, and I was able to try some of them.

I was given honey-infused Chinese rice wine and nuts, which I enjoyed. I have had this kind of alcohol at bars in Beijing before, so it was interesting to visit an area that produces it, and I like nuts, especially in the fall and winter.

Longxiaonan has an informative WeChat official account and a convenient mini app, which are very useful when doing business in China these days. I had a plane to catch the evening of the day that I visited, and rice wine would probably not be allowed in the carry-on bag that I had with me, so I planned on ordering some through the mini app later.

Longxiaonan’s development seems to epitomize the development of e-commerce in general in Longnan in recent years. The undertaking is helping the city’s economy grow and is helping impoverished people escape from poverty. It was nice to visit its distribution facility and learn more about the company firsthand.

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