Recently, e-commerce, a type of digital economy is rising up as a new marketing method of agricultural products. This study was focused on analyzing the impacts of e-commerce on the farmer's management behavior and identifying alternatives for the dev...
Recently, e-commerce, a type of digital economy is rising up as a new marketing method of agricultural products. This study was focused on analyzing the impacts of e-commerce on the farmer's management behavior and identifying alternatives for the development of e-commerce in agricultural industry.
For this study, survey was conducted for 24 farmers who sell their products through e-commerce in Chungchungnam-Do province.
The results of 4 aspects are as follows.
1. Farmer's decision-making system : The surveyed farmers changed their mind to set up the production system appropriate for e-commerce or to use consumer informations aggressively.
2. Marketing structure : The farmers made a brand of their product to get various effects such as product discrimination, building up consumer trust etc. The amount of line shipping through co-op tended to be reduced as a result of increasing the e-commerce. It was necessary for 2~3 years to enter the e-commerce market of agricultural products.
3. Production structure : The farmers introduced a quality certification system and changed as their crops suitable for e-commerce. Even though a beginner stage, e-commerce influenced all of the production system.
4. Management structure : 75% of the farmers sold their product at retail price. It means that the e-commerce farmers act as a price maker in the market. And also they increased their business size through introducing processing facilities, and acquired the add value from them.
As a final result, e-commerce of agricultural products has a lot of impacts especially on the area of farm production as well as on the consumer market. For developing the e-commerce of agricultural products, we suggest some alternatives such as the improvement of financial environment through the reducement of a service charge of card, the increasement of B2B transaction in the economy of scale by farmer's partnership or corporate and the introduction of quality certification system for agricultural products.