E-commerce delivers fresh success

When Zhuo Daofu's tourism company started to go under due to the novel coronavirus outbreak, he knew he had to do something quickly to survive.

The tourism businesses in Shiyan, Hubei province, virtually shut down after the outbreak began in late December. Most residents in urban areas remain under strict quarantine, with their daily necessities met by delivery services.

Including office rent and the salaries of the 10 full-time employees of Baishitong International Travel Service, Zhuo's monthly operating costs are about 50,000 yuan ($7,185).

"If there was no other income, the company would not have lasted half a year," Zhuo, 40, said. "If the current team of the company was disbanded and a new one was formed after the epidemic, it would also be a great loss to the company."

In the first quarter of the year, the tourism company usually earns 100,000 yuan profit from the Spring Festival holiday and organizing visits to the local hot springs. While not a great amount, it's enough to keep the business going until the summer.

"The peak season for tourism is July and August, so ensuring the company survives during this epidemic is the priority for me and my wife. After all, we don't want to die before the dawn as this epidemic can't last forever," Zhuo said.

Veggie might

Ironically, it was the restrictions on movement in Hubei province, where the outbreak has been centered, that provided the new business opportunity.

Zhuo realized he could use the Shiyan Huishenghuo e-commerce platform that he had run his tourism business through to also deliver fruit and vegetables.

The idea took root early last month when his wife Zhao Mingying, 40, traveled to her home district of Zhangwan in Shiyan. She noticed that vegetables were growing in abundance and farmers could not sell them due to the travel restrictions imposed to control the spread of the virus. Fruit and vegetable wholesalers could not access the produce.

At the same time, local authorities were encouraging businesses to use e-commerce platforms to provide services for residents during the special period.

As the epidemic eased, Zhuo applied for and was granted a special permit from the local commerce department that eased travel restrictions on delivery vehicles.

The Shiyan Huishenghuo platform has over 100,000 users, providing vegetable and fruit delivery services to 58 local communities.

"We spend less than eight hours from when the orders are placed to picking up the vegetables and sending them to customers' homes. Our efficiency and the high quality of the produce has earned us many customers," Zhuo said.

Most of the farmers are located within a 10-kilometer radius of the company's office and the drivers usually pick up produce in 30 minutes. Each delivery vehicle can carry about 60 bags of orders.

The 10 original employees of the company deal with the online orders, and Zhuo has hired 15 workers for the delivery services. Since starting the business on Feb 11, the company has received over 20,000 orders and sold about 50 metric tons of fruit and vegetables.

Dual business

Zhuo's company has made more than 100,000 yuan in profit from the food delivery business in one month, the equivalent of what it would have earned from the tourism business in three months. The couple have decided to offer higher salaries than usual to their employees, as they know the delivery jobs are quite tiring.

"I was surprised that we had not been beaten down in this difficult time, but we have got more than 30,000 users, which is good for our future tourism business," Zhuo said. "We will keep the delivery division after the epidemic; it has really helped the company, as well as the customers, a lot during this period."

The new business has also expanded the couple's thinking on doing tourism, and they are now planning to provide more services utilizing the countryside.