If, at the beginning of this week, you had asked me what kind of businesses Chinese state-run media network CCTV might be planning to spin-off, a food ecommerce site would have been pretty low on my list. But that shows how much I know, because yesterday it was announced that the network is planning exactly that.
Representatives of the CCTV program Outlook announced that they have launched a spin-off food ecommerce site called FaxianGO (loosely, “Discover Buy”). The site, which is being run by a Beijing-based technology company affiliated with the program, offers users a carefully-curated selection of produce, with a focus on local goods. The idea is that using CCTV’s media clout and local government connections, as well as careful oversight and inspection of all the foods on offer, the site will be able to alleviate Chinese consumers’ concerns about food safety.
FaxianGO won’t be like an online grocery store. The selection will be limited. But, at least in theory, the food that you find on the site should be safe to eat.
That might seem like a given, but food safety is a huge issue in China. Just recently, one of the country’s most popular instant noodle brands was rocked by revelations that its parent company used oil meant for animals in some of its human foods. Chinese consumer trust in food vendors and food safety is pretty low, and a website that consumers feel they can trust might do very well, even if it does offer a relatively limited selection of items.
That said, CCTV is betting that consumer trust in the media, government, and CCTV producer Shi Jian (who is the site’s chief strategist and food safety supervisor) will be enough to override fears about food safety and buying produce online. That may or may not be the case. FaxianGO is operating in pretty uncharted territory – there aren’t many examples of successful ecommerce startups focused on selling local foods – and its success is far from assured.
The site is already online and interested users can start picking up some local food items right now, although at present the product options and available locations are pretty limited.
(Source: Techweb)
Editing by Jeff Quigley
(And yes, we’re serious about ethics and transparency. More information here.)
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