The Tetralogy of Village Taobao’s Business Model

The Tetralogy of Village Taobao’s Business Model

Stage I: Infrastructure Construction 基础设施

The primary task in this stage is to build the two-level service network – operation centers at county level, and service stations in villages.
This network will serve as a primary two-level service unit that integrates local logistics and service network.

Operation Centers— run by Alibaba and local governments
Service station— run by village men

Stage II: Dual-Platform Construction 双平台建设

The primary goal in this stage is to put villages in touch with the global market. Agricultural products and local products from villages can be sold to nation-wide and worldwide consumers, while village men will also gain access to goods that are unavailable in local retail stores.

Stage III: Activating Ecology 激活生态

In this stage, Alibaba invites multiple actors, including the government, cooperative partners, platforms, business operators, third-party service providers, and other services they provide, including personnel training and public services, will together boost the development of the local ecology/eco-system.

Stage IV: Ecology Service Centers 生态服务中心

The last stage will focus on the construction of local ecology service Centers (industrial parks). In these centers, various actors/services in the local network will have their head-offices, including logistic company, third-party logistics service, finance, third-party training service, etc.

Five practical meanings of Village Taobao
1. Logistics reach the bottom
2. Attracting talents to move to villages
3. Move agriculture market online
4. Transform regional economic structure
5. Transform consumption structure