Summary of Key Points
Zhong Zhaozha criticized e-commerce platforms in the CCTV program “Dialogue” as being “transparent intermediaries” with variable fees, which he argued stifled the more emotional and spontaneous consumption that occurs offline. Qin Shuo acknowledged some of the issues raised by Zhong (such as the high cost of traffic and the frequent changes in rules experienced by businesses), but opposed blaming the difficulties of the real economy on e-commerce. He believed that e-commerce is a crucial driving force for the efficient evolution of China’s economy, serving as an engine that connects supply with demand. It is important to view its value and problems objectively, and to address the “impurities” within the system rather than cutting off its own potential.
Zhong Zhaozha’s Two Main Criticisms of E-commerce
Zhong’s criticism did not aim to make sweeping generalizations but focused on two specific issues:
1. **E-commerce as an “Opaque Intermediary”: He argued that while e-commerce acts as an intermediary, it is different from traditional ones. Traditional intermediaries (for example, those providing biosafety certifications for agricultural products) have fixed fee structures, whereas e-commerce platforms adjust their fees for each transaction, making the operational costs for businesses increasingly high and unpredictable.
2. Stifling Emotional Consumption Offline: E-commerce has led to the closure of many retail stores in cities, eliminating the spontaneous buying behavior that used to occur when people saw products they liked. He also mentioned that even small farmers may be forced by intermediaries (including e-commerce platforms) to use pesticides on their products.
Zhong acknowledged, however, that some intermediaries are necessary (such as those certifying agricultural exports), and the question is rather about what type of intermediaries are needed.
The Real Challenges Faced by the Real Economy Are Not E-commerce’s Fault
Qin Shuo refuted the notion that e-commerce is to blame for these issues with several facts:
1. The Root Cause Lies in Imbalance between Supply and Demand: China’s manufacturing sector accounts for 30% of the global total, but its consumer market only accounts for 13%. There is an oversupply of mid-to-low-end products, and people’s disposable income as a percentage of GDP is low, which is the core reason for insufficient effective demand and market competition.
2. Offline Retail Has Its Own Historical Burdens: In the past, too many stores were opened (as Huang Qifan has pointed out), and high rental costs have forced some excellent offline retailers (like Pang Donglai’s) to close. The difficulties faced by offline retail are not entirely due to e-commerce.
3. Industries Unrelated to E-commerce Are Also Struggling: Entire industries, such as photovoltaics, are experiencing losses, and some production sectors are in trouble, which has nothing to do with e-commerce. In fact, the online market in Yiwu has created more global business opportunities than its offline counterpart.
Qin Shuo pointed out that businesses on e-commerce platforms can at least adjust their production based on user feedback, avoiding the devastating losses seen in industries that expand blindly.
E-commerce Is Not a Traditional Intermediary; It’s an Efficiency Engine
Even if we consider e-commerce to be an intermediary, it is fundamentally different from traditional ones:
- Traditional Intermediaries: They add layers of costs and create information barriers. A product has to go through multiple intermediaries (national, provincial, municipal agents) before reaching the consumer, with each layer increasing the price, and the factory often does not know what the final customer actually wants.
- E-commerce Platforms: They eliminate these middle levels and directly connect supply with demand. Digital technologies streamline information flow, capital flows, and logistics, allowing factories to see customer reviews and quickly adjust their products. Deliveries can happen on the same day or the next day, which was unimaginable in the past.
- Clearly Beneficial for Society: In the past, rural areas could not access high-quality goods at reasonable prices; now, both rural and urban consumers have access to the same products at equal prices, representing a significant social advancement.
It is reasonable for e-commerce platforms to profit through advertising and commissions, as long as the rules are transparent and not excessive. E-commerce enhances the efficiency of the entire society, not just replacing traditional intermediaries with a different technological form.
How to Approach E-commerce
Qin Shuo’s main advice is to address the issues within the e-commerce system without denying its value:
1. Platforms Need Improvement: Rules should be made transparent, and fees should be stable. Platforms should balance the interests of consumers, businesses, and themselves to achieve a win-win situation.
2. Avoid Binary Oppositions: E-commerce is an integral part of the real economy (for example, Meituan’s flash shopping services deliver within 30 minutes, showing that online and offline are already integrated). The online world is not “virtual,” and the offline world is not perfect either.
3. Maintain Core Values: E-commerce drives economic evolution by facilitating faster matching of supply and demand and more efficient production, helping China maintain its competitive edge in the global economy.
In conclusion, Qin Shuo emphasizes that the key to the debate is not whether e-commerce should exist or not, but how to make it healthier. This is the responsible approach to China’s economic development.