Summary of the Core Content
This news article focuses on the criticism delivered by Zhong Zhaozhao, the founder of Nongfu Shanquan, against e-commerce platforms. Zhong argues that these platforms have become "super intermediaries" that extract high fees, operate with opaque rules, and stifle physical retail businesses as well as social creativity. Wu Xiaobo responds to his viewpoint, emphasizing that the relationship between physical stores and e-commerce is not one of mutual exclusion. The article uses Walmart as an example to illustrate that the integration of online and offline services is the future trend and points out that regulatory authorities are beginning to limit the power of these platforms. The ultimate message is that the issue is not about whether to rely on e-commerce or physical stores, but rather about creating a fair and healthy business ecosystem.
Zhong Zhaozhao's Criticism: Platforms as Even More Aggressive "Super Intermediaries"
Zhong's main concerns are straightforward:
- 表面ly removing intermediaries, but actually becoming new ones: E-commerce was supposed to eliminate middlemen, but now the platforms themselves have become the most powerful intermediaries, charging fees for both sales and other services (such as advertising and traffic), which are more hidden and detrimental than traditional intermediaries.
- Destroying physical stores: Platforms control all the traffic; people shop on their phones, leading to the closure of many offline retailers. The pleasure of shopping in person is diminished, and emotional consumption (e.g., buying something on a whim) has decreased, weakening social creativity.
- The industry trapped in a cycle of low-level competition: Everyone competes on price and traffic, resulting in thin profits and a lack of innovation, creating a "low-level equilibrium."
Zhong's core plea is that platform power must be restricted to prevent them from acting arbitrarily.
Wu Xiaobo's Counterarguments: Don't Make E-commerce and Physical Stores Opposites
Wu agrees with most of Zhong's concerns but opposes the following misconceptions:
- Not an enemy relationship: E-commerce does not oppose physical stores; rather, they complement each other. For example, e-commerce has driven improvements in logistics and manufacturing.
- No binary opposition: Successful physical stores today often use online tools (such as delivery services and live streaming to sell products), so there are no purely offline businesses anymore.
- Not a zero-sum game: The development of e-commerce does not necessarily mean a decline in the urban economy; it has created jobs (e.g., for delivery workers) and boosted consumption (e.g., through local product sales via live streaming).
In summary, Wu believes that e-commerce and physical stores are partners, not rivals.
Walmart's Example: The Power of Integrated Online-Offline Strategies
Walmart’s approach illustrates the potential for integration:
- Improving the shopping experience: They reduced the height of shelves in their stores, launched own brands (such as collaboration with Disney), and added activities like crafting classes and fashion shows, turning supermarkets into places where customers can share experiences on social media.
- Accelerating online growth: They lowered the free shipping threshold for express deliveries and expanded nationwide delivery services, using digital marketing strategies (e.g., influencer promotions).
As a result, Walmart has not been defeated by e-commerce but has survived by combining online and offline approaches.
The Real Problems with Platforms
Zhong is right that platforms have too much power. Issues include:
- Self-determined rules: Platforms set the rules for traffic distribution and fee structures, acting as both market regulators and participants, leaving merchants with no say.
- Traffic monopolies: Merchants rely on platform traffic, but the cost of using it is increasing, making it difficult for small businesses to afford.
- Opaque rules: Algorithms control traffic distribution and fee adjustments, which are often unpredictable, forcing merchants to accept changes without choice.
The real problem is not with e-commerce itself but with the dominance of these platforms.
The Way Forward: Regulation for Fairness
Regulatory authorities are taking action:
- Antitrust policies: In February 2026, the State Administration for Market Regulation issued guidelines against monopolistic practices on internet platforms, prohibiting behaviors like setting the lowest price across all platforms and forcing merchants to sell on only one platform.
- Respecting merchant rights: The Ministry of Commerce requires platforms to respect merchants' pricing autonomy and prevent them from forcing price cuts.
- 14th Five-Year Plan: There is a focus on promoting the healthy development of the platform economy, with increased regulation of data, algorithms, and traffic.
The goal is not to eliminate platforms but to reinvent them as service providers that offer essential services (such as logistics and payment solutions) rather than dominant intermediaries. The future business ecosystem should prioritize efficiency online and a better shopping experience offline, allowing both platforms and merchants to compete fairly and generate profits while fostering innovation.
Conclusion
Zhong has identified issues with platforms, but returning to a purely offline model is not the solution. E-commerce and physical stores need to integrate, and regulations must curb platform dominance to create an efficient and inclusive business environment.