Lenovo Holdings's Jiajia Group announces its foray into the wine industry

Absrtact: November 18, Lenovo Holdings's Jia-WO group announced its foray into the wine industry. Jia Wo Group with the French Jean-pierre Moueix Group, Chile Emiliana Winery cooperation, Jia Wo Group to provide China sales channels, raw materials (grapes), brand support, Jean-pier

November 18, Lenovo Holdings of the company announced to enter the wine industry. Jia Wo Group with the French Jean-pierre Moueix Group, Chile Emiliana Winery cooperation, Jia Wo Group to provide China sales channels, raw materials (grapes), brand support, Jean-pierre Moueix, Emiliana responsible for wine production. The two sides combine global resources to connect with China's consumer market.

Jia-wo Group is one of the six pillars of Lenovo Holdings, in addition to June Lian Capital (formerly Lenovo Investment), Lenovo Group, digital China, Hong-yi Investment, financial branch place.

Through June Lian Capital, Hong Yi Investment, Lenovo Holdings into the manufacturing, energy, tourism and other traditional industries, Jia-WO Group is specifically independent, because Liu will agriculture and Lenovo Group, digital China and other industrial companies in the same important position.

On the same day, Lenovo chairman Liu, in an interview with the Economic report 21st century, concluded that Lenovo vigorously developed the agricultural industry for at least three reasons: first, the new technology, in addition to modern agricultural technology, but also including computing, Internet technology will be integrated into the traditional agriculture, the second is the policy trend is conducive to the Third, China will become the world's largest demand for agricultural products, should be the Chinese market and global resources docking.

Liu said that the impact of small-scale peasant households, China's agricultural industry faced at least two opportunities for technological upgrading, one is the upgrading of modern agricultural technology, the second is the Internet technology upgrade.

In addition to wine, the company's listed products include the Peach (named Liu Dao by Liu, who has established the world's second-largest peach base in Sichuan) and the blueberry produced in Chile.

New agriculture in the Internet

How does the Internet transform agriculture? Liu believes that the first change is sales, the future of agricultural products should be like selling millet phone.

Mr Liu believes that the Internet will play an important role in marketing, even more than the current consumer electronics. For example, send fruit to honor the elderly, or send friends, can send 1000 yuan of fruit tickets, through the official website of Jia Wo can buy the best products, the Internet under a single, settlement, through express delivery directly to the home, which is much better than directly buy fruit.

Jia Wo Group has not set up its own electronic business site, Liu said that the future will not exclude the establishment of the electricity business site. Liu said: "Build a website to sell fruit, to Jia Volay said no trouble."

Chen, president of Jia Wo Group, believes that cloud computing technology and terminal computing can be used in agricultural production: collecting temperature and humidity data in the air of land through the Internet of things, timely understanding and timely decision-making. In addition to production, in the storage, operation process, the same need to apply to the Internet, cloud computing, large data technology.

In the process of operation, Liu said that "know how to work with rural grass-roots organizations" is very important. Jia Wo to every place needs local government to help create a land circulation environment, if talk door-to-door, each 35 acres of circulation, it is difficult to form scale, the government thinks that the good can help local development, will help work, especially the Village committee, all day and farmers together, easy to communicate.

Lenovo will give some start-up funds, the government will start lending to banks, the state-favoured agricultural support policy, Lenovo will also help farmers to submit application reports. In the premise of the farmers have been recognized, these early matting work, Lenovo can and the government to do a good job.

The benefits to farmers are: in addition to the rental income generated by land transfer, can also do some work on the Jiahe plantation, earn a salary, become industrial farmers.

After all these things are done, Lenovo will introduce a set of management methods, agricultural technology, standards (such as quality standards, production process standards) into the garden to achieve agricultural modernization.

In particular, Mr Liu mentioned business households: a peasant household, a number of farmers around to go to the city to do business, or go out to work, their land can be left behind this person, this person as long as enough to gather 1000 acres, Jia Wo Group can dock with him, to the company's form of cooperation, the profits of the two sides divided. Other farmers either rent directly or share profits.

Similarly, Lenovo to the enterprise farmers, so that it in the management of ideas, technical means, operational capabilities are called "Modern agricultural entrepreneurs", and through the enterprise farmers to transform agriculture.

Chen said: "The scale is too small to be profitable, 1000 acres is more appropriate scale."

New business

Liu's observation of agriculture, not only from the technological evolution, land policy and other angles, but also from the business point of view: for agriculture, Lenovo such a private enterprise can do, the key question is whether to profit, assuming that the loss, no profit space, or the risk is great, can not do.

The first reason to do this is that the technical space for agricultural transformation is enormous. Prior to the land policy itself in the family as a unit, the land divided into a small piece of land, modern agricultural technology can not enter.

Mr Liu argues that Chinese agriculture is far more technologically developed than the PC manufacturing sector.

The second is due to the change of land policy, especially the plenary some new policy trends, such as land right transfer, suitable for large-scale operation, in this premise, modern technology including PC technology will be integrated with agriculture, the emergence of a new type of agriculture.

Another policy trend is that countries will reduce approval procedures and help Lenovo to buy agricultural resources around the world, including land resources, technology resources, technology from developed agricultural countries, which may be acquired through acquisitions and, if resources are cheaper, through acquisitions. The advantage is that China's market is used to dock global resources to meet China's growing consumer demand.

Chen Introduction, Jia Wo Group in Chile to buy land, an acre of only 3,000 yuan, and is a permanent title, much cheaper than China, but also more fertile, Chilean soil organic matter is the worst content of 5%-6%, good as high as 12%, Chinese soil organic content on average only 0.2%-0.3%.

Another benefit is the supply of anti-seasonal food: When China's winter arrives and fruit is in season, Chile happens to be summer, the fruit season, and it can be shipped to China for a good price. Chen said: "Now Jia Wo Group in the smart species has blueberry, November 17, the best blueberry in Shanghai to hold a promotion meeting."

China has become the world's largest consumer in many areas, like in the PC sector, Liu said.

The third reason is market demand, and Mr Liu believes that a significant proportion of people are willing to pay a premium for the brand in order to eat safe food, and that the company has the ability to invest in a safe food brand.

Mr Liu believes that "agriculture is the business that Lenovo should do", rather than what any enterprise can do: agriculture is different from other businesses and cannot be repaid quickly, and a private enterprise must be large enough to have a certain tonnage, with sufficient investment capacity, including continuous investment ability, to do such a thing.