On Countermeasures of Promotng Agrcultural Products E Commerce n Chna Wehua Gan, Tngtng Zhang, and Yuwe Zhu School of Mechancal and Electroncal Engneerng, East Chna Jaotong Unversty, 330013, Nanchang, P. R. Chna ganwehua8421@yahoo.com.cn, zhuyuwe3113@163.com, z.t.t.0812@163.com Abstract. Chna s a large agrcultural country, yet the development envronment of E-busness n Chna s not mature. E-Commerce of agrcultural products s a revolutonary change of tradtonal agrcultural economy. Ths paper focuses on agrcultural products electronc commerce n Chna. Frstly, the paper descrbes the current stuaton of electronc commerce. Afterwards, the paper uses Fuzzy Analytc Herarchy Process (AHP) to analyze the factors hnderng agrcultural products electronc commerce n Chna. Fnally, t puts forward the countermeasures to promote the development of agrcultural products e-commerce. Keywords: Agrcultural products, electronc commerce (EC), Fuzzy Analytc Herarchy Process (AHP). 1 Introducton Research of agrcultural products n electronc commerce (EC) can be dated back to 1970s n the Unted States. Then much attenton comes from Japan, Netherland, etc [1]. Chna s a large agrcultural country, yet the development envronment of E-busness n Chna s not mature. E-Commerce of agrcultural products s not a smple substtuton of tradtonal dstrbuton way. It s a revolutonary change of tradtonal agrcultural economy snce agrcultural products n E-Commerce need the electronc commerce system through producng, processng and sellng. Moreover, nformaton nfrastructure, supportng facltes and talents are the key factors nfluencng agrcultural products E-Commerce. 2 Background of Agrcultural Products E-Commerce n Chna The applcaton of nternet technology gves agrcultural crculaton a new lfe. Contrary to the tradtonal face-to-face tradng n the agrcultural products market, agrcultural products E-Commerce can ntegrate all knds of resources. In recent years, some agrcultural e-commerce platforms are emergng n Chna, e.g. Shouguang county, Shandong provnce has set up E-Commerce servce platform of vegetable future transacton, aucton and exchange onlne. Shangha Nongxn E-Commerce D. L, Y. Lu, and Y. Chen (Eds.): CCTA 2010, Part II, IFIP AICT 345, pp. 579 586, 2011. IFIP Internatonal Federaton for Informaton Processng 2011
580 W. Gan, T. Zhang, and Y. Zhu Co. Ltd. s operatng a hgh-qualty-agrcultural-product orderng platform provdng the door-to-door servce for customer [2]. Nowadays the mnstry of agrculture tres to help more and more peasants to utlze such advanced technology, e.g. webste of Chnese agrcultural nformaton net, one-stop-trade and onlne-exhbton-hall, to expand ther market and ncrease ther ncomes. 3 Factors Influencng Agrcultural Products E Commerce There are many factors hnderng e-commerce of agrcultural products, but major factors s stll on the debate [3]. Wth the development of network economy, E-commerce gradually turns to be sgnfcant tradng patterns n the modern socety. In order to mature such pattern, effectve measures should be taken as soon as possble. Furthermore, the key factors should be found. Then use Fuzzy Analytc Herarchy Process (AHP) to determne the nfluence of factors related to agrcultural e-commerce. 3.1 Introducton of Fuzzy AHP AHP proposed by Amercan professor T L Saaty n 1980s s an evaluaton and decson makng method wth qualtatve and quanttatve analyss. Fuzzy AHP based on AHP and the fuzzy method comprehensvely analyzes every element n the system to fnd the best scheme. By fuzzy AHP the values to a 0-1 range are used nstead of 1-9 nne evaluaton methods to establsh decson matrx [4]. The basc process s as follows: (1) Frstly, draw analytc herarchy chart based on the decson object. Objectve level decsons among several plans Crtera level factors n decson makng processng. Scheme level several alternatves (2) Secondly, grade the scores. Accordng to the mportance of each factor n crtera level wth decson-makng requrement, the weght vector s obtaned: s W=(w l, w 2, w 5 ). W 0, and W 1. = 1 = If W =0, t means that falure to take the factor nto consderaton n some stuaton. Then, evaluaton system can be establshed to make a comparson among chosen plans wth every factor n crtera level. Scorng vector of factor n several alternatves can be acheved by makng ponts wthn 0, 1. P = (P, P,...,P ), 1,2,..., s. 1 2 n = P as Row of a matrx to get an s n matrx P and weght vector W as a 1 s matrx. The scorng vector and weght vector can be called fuzzy sets n Fuzzy Mathematcs, matrx s called Fuzzy Matrx.
On Countermeasures of Promotng Agrcultural Products E Commerce n Chna 581 (3) Thrdly, calculate the product of W and P to matrx multplcaton. The result s a 1 n matrx A. a 2 = w1 P1 + w2 P +... + ws Ps = wk Pk, = 1,2,... n. a s the fnal evaluaton of Scheme under the mpact of factors S. (4) Fnally, carry out a strategc choce to the vector n the matrx A. 3.2 Man Factors Affectng Agrculture Products E-Commerce Fgure 1 shows the structure of factors affectng agrculture products E-Commerce. The frst layer-objectve level s the target,.e. the result for such analyss. The second layer-crtera level, lsts some man factors by the method of Delph, they are transacton subject, object and platform, envronment. And the thrd layer-scheme level, respectvely presents each man factor n detal, e.g. for the transacton subject, subject cognton and nformaton qualty are consdered, whle for the transacton object, standard, brand and ndustral and commercal level are consdered, and for the transacton platform, nformaton nfrastructure and classfcaton and normalzaton are consdered, and for socal envronment, logstcs level, transacton securty, electronc payment, socal credblty are consdered. Afterwards, determne the weght of these factors n layer B accountng for layer A, then calculate the weght of factors n layer C accountng for layer B. Fnally, obtan the affectng scores of each factor n layer C accountng for layer A. s k A: Objectve level Factors Hnderng EC B: Crtera level Transacton Subject Transacton Object Transacton Platform Socal Envronment C: Scheme level (subject cognton, nformaton qualty) (standard, brand, ndustral level, commercal level ) (nformaton nfrastructure, nformaton classfcaton, normalzaton) (logstcs, transacton securty, electronc payment, socal credblty) Fg. 1. Factors Hnderng Agrcultural Product s E Commerce Development Determne each factor's mportance from 0 to 1 by comparson. The bgger the value s, the more mportant. Table 1 shows the fuzzy decson matrx [5].
582 W. Gan, T. Zhang, and Y. Zhu Table 1. Value and Sgnfcaton Value [0-0.1 [0.1-0.3 [0.3-0.5 0.5 (0.5-0.7) [0.7-0.9 [0.9-1] Sgnfcaton Compared wth each other, one element s obvously less mportant than the other. Compared wth each other, one element s less mportant than the other. Compared wth each other, one element s slght unmportant than the other. Compared wth each other, elements both have the equvalent mportance. Compared wth each other, one element s more mportant than the other. Compared wth each other, one element s greatly mportant than the other. Compared wth each other, one element s crtcally mportant than the other. From the above, there are four elements n layer B: B1= Transacton Subject B2= Transacton Object B3= Transacton Platform B4= Socal Envronment A decson matrx can be acheved accordng to the method of Delph (see Table 2). Table 2. Importance for elements of layer B B1 B2 B3 B4 B1-0.6 0.65 0.7 B2 0.4-0.6 0.65 B3 0.35 0.4-0.55 B4 0.3 0.35 0.45 - D = 4 j= 1 B, F = ( ), ( j). j 4 4 B j j= 1 = 1 n the weght of every element n layer B s w =D/F. W = (0.325, 0.275, 0.217, 0.183). B In the same way, there are 13 elements n layer C. C1= subject cognton C2= nformaton qualty C3= standard C4= brand C5= ndustral level C6= commercal level C7= nformaton nfrastructure
On Countermeasures of Promotng Agrcultural Products E Commerce n Chna 583 C8= nformaton classfcaton C9= normalzaton C10= logstcs C11= transacton securty C12= electronc payment C13= socal credblty Table 3, Table 4, Table 5 and Table 6 show the weghts of element n layer C accountng for the element n layer B: Table 3. Importance for elements of group CB1 C1 C2 C1-0.51 C2 0.49 - Table 4. Importance for elements of group CB2 C3 C4 C5 C6 C3-0.56 0.54 0.42 C4 0.44-0.52 0.53 C5 0.46 0.48-0.49 C6 0.58 0.47 0.51 - Table 5. Importance for elements of group C B3 C7 C8 C9 C7-0.60 0.56 C8 0.40-0.44 C9 0.44 0.56 - Table 6. Importance for elements of group C B4 C10 C11 C12 C13 C10-0.70 0.65 0.60 C11 0.30-0.60 0.45 C12 0.35 0.40-0.58 C13 0.40 0.55 0.42 - n W B C 1 = (0.51, 0.49) 2 W B C = (0.254, 0.245, 0.235, 0.260) 3 W B C = (0.357, 0.260, 0.333) 4 W B C =(0.326, 0.225, 0.221, 0.225) W B (= l, 2, 3, 4) and C W k (k=1, 2, 3, 13).
584 W. Gan, T. Zhang, and Y. Zhu The nfluence of each factor on electronc commerce can be found. The followng conclusons are drawn: W = (0.16575, 0.15925, 0.06985, 0.0682, 0.06545, 0.0715, 0.083979, 0.05642, A C 0.072261, 0.59658, 0.041175, 0.040443, 0.041724). It s obvous that 0.596589 (C10) s the maxmum, then 0.16575 (C1) and 0.15925 (C2), whle 0.040443 (C12) s the mnmum, followng s 0.041175 (C11) and 0.041724 (C13). Therefore, the most mportant factors to the development of agrcultural products e-commerce are logstcs development level, subject of cognton, nformaton qualty of peasants. On the contrary, electronc payment, transacton securty and socal credblty make the slghtest effect on agrcultural e-commerce. 4 Countermeasures for the Development of Agrcultural EC 4.1 Set Up Effectve Agrculture Product Logstcs System Owng that agrcultural products vared from types and volumes, much dffculty wll come up n the logstc actvtes,.e. fresh-keepng, transportaton, follow-up treatment [6]. Nowadays weakness of agrcultural products dstrbuton system s one of the bottlenecks n the development process of agrcultural products E-commerce n Chna. It s necessary to set up refrgerated-warehouses, dstrbuton centers, etc. to accelerate the speed from the countrysde to cty. On the other hand, trackng and tracng system through GPS and GSI should also be ntroduced to help buyers and sellers montor the whole process va network to mprove the safety, relablty, accuracy of agrcultural products. 4.2 Improve Rural Informaton Infrastructure Although nternet s avalable everywhere n the cty, the users of nternet n the countrysde are so less [7]. Such unbalanced stuaton becomes the second obstacle for agrcultural EC. It s necessary to mprove rural nformaton nfrastructure n Chna n order to reduce the cost of ganng nformaton for the peasants. 4.3 Implement Standardzaton and Brands After accesson to WTO, our exports of agrcultural products often reject. No wonder that consumers prefer safety and famous agrcultural products. It s eager for agrcultural products to mplement standardzaton and brands. Mnstry of agrculture n Chna has carred out some standards about agrcultural products [8]. In addton, our agrcultural products should have our own brands and regster trademarks all over the world. It s useful to depend on the ntellectual property rghts to protect our own brands and expand our markets. If natonal agrcultural product becomes the famous brand n the world then the buyers abroad can easly clck the button Search and catch the related nformaton.
On Countermeasures of Promotng Agrcultural Products E Commerce n Chna 585 4.4 Cultvate Talents n Agrcultural Products EC Another key element for the success of agrcultural products EC s talents n ths feld. If mllons of peasants can understand the prncples of EC and are n ther postons to trade va nternet, agrcultural products EC wll realze. Frstly, a long-term educaton plan about scence and technology should be made n the countrysde [9]. Secondly, knowledge related to nformaton technology and electronc commerce should be taught for the peasants. Another way s preferental polces gudng EC professonal talents n the colleges to servce for countrysde. 4.5 Promote Industral Management of Agrculture The current man body n agrcultural products EC s agrcultural operaton enterprses snce the frms could take use of ther own advantages on captal and technology to mprove the value of agrcultural products and speed up the standardzaton of local agrcultural producton, enhance the compettveness. Industralzed operaton of agrculture s not only useful to open both nternatonal and domestc market of our agrcultural products, but also can accelerate the development of rural socal economy. Therefore, more and more agrcultural products operatng and processng enterprses should be encouraged to open to strengthen the compettveness and rase agrcultural labor employment. 4.6 Specalze E-Commerce Webstes The EC webste s the network platform to develop EC, there are more than 6000 webstes related to agrculture n the countrysde n Chna [10]. However, agrcultural webstes n western Chna are fewer than n other regons. A number of webstes focus on nformaton ntegratng functon, the payment functon of webste s not perfect. At present, the EC domestc webstes of agrcultural products are far from professonal and colorful. As a result, more agrcultural enterprses and ntermedary organzatons should establsh commercal webstes. And these webstes should be estmated regularly by the publc and government. 5 Conclusons Dependng on the basc ndustry of natonal economy, agrculture has a bearng on the healthy and stable development for economc and socety. Along wth optmzed structure of agrcultural producton and mproved level of e-commerce, technology nnovaton could accelerate modernzaton and ndustralzaton of agrculture, and provde more comprehensve prospects for agrcultural e-commerce. A new generaton agrcultural e-commerce platform comes to the top. Wth the development of network economy, e-commerce gradually wll turn to be sgnfcant tradng patterns n the future.
586 W. Gan, T. Zhang, and Y. Zhu Acknowledgments Thanks for the support from natonal scence fund: On Relaton Between Mode of Pg Green Supply Chan and Performance around the Poyang Lake (70962002). References 1. Hu, T.: Analyss n EC Development of Agrcultural Products n Chna. J. Agrcultural Economy 5, 23 27 (2005) 2. Shao, B.: EC Summarze, p. 115. Academc Press, Bejng (2004) 3. Yang, C.: Research of Electronc Trade Market of Supply Chan Management. J. Commercal Research 11, 88 91 (2006) 4. Sun, W.: Research of Rural Economcal Increasng. Chna Agrculture Scence &Technology Press, Bejng (2002) 5. Yang, Q.: Technology and Applcaton of EC. Prentce Hall Internatonal, Inc., Bejng (1999) 6. L, D.: Bass of Electronc Commerce. Unversty of Captal Busness and Economcs, Bejng (1999) 7. Zhao, J.: Some Thoughts about the Development of Agrcultural E-Commerce n Chna. J. Inqury nto Economc Issues 1, 98 99 (2005) 8. Tmmesr, P.: Busness Models of Electronc Markets. J. Electronc Market 8(2), 3 8 (1998) 9. Kraemer, K.L., Dedrck, J.: Strategc Use of Internet and E-commerce: Csco System. J. Strategc Informaton System 11, 5 29 (2002) 10. Henderson, J., Dooley, F., Akrdge, J.: Internet and E-Commerce Adopton by Agrcultural Input frms. J. Revew of Agrcultural Economcs 26(4), 505 520 (2004)