Innovation

Agriculture products
In order to achieve “store by demand”, reduce intermediate expenditures and avoid waste of resources, Kugou has settled a number of warehouses near Chengdu, and created a smart system to distribute daily delivery assignments to trucks by analyzing customer average demands (big data analysis). In addition, each truck has been arranged given routes, and non-stop drive around 20 - 30 communities 8 times per day. The truck will drop vegetables, fruits and meat to local spare labourers when they are arriving at each community. Finally, customers will receive their orders from those chartered spare labors within around average 30 mins after they placed order.
Weiwei Gong mentioned, “Noticeably, trucks will not drive across the entire city, different trucks deliver in a particular part of city and nearby suburbs, so that it can avoid the traffic congestion of crossing city and increase approximately 60% efficiency of delivering”.
Value-added services
Due to high exposure rate and customer volume, Kugou raised additional services, like billing payment, e-government services, financial services, advertising services, etc.
Kugou team
The core staff of Kugou are all professional senior executives with over a quarter million in annual salary from various industries, such as information industry, financial industry, logistics industry and mass media industry.

Inspiration

Weiwei Gong said, “The original motivation of creating Kugou is Chinese farmers’ poor situation. I have been agriculture industry for many years, I understood how annoying when famers have loads of unsalable vegetables, fruits laying at home. I really know their pressure from whole family, children’s education, daily expenses and so on. Also, I know how much wholesalers and retailers earned from farmers. I want to rebate customers’ unneeded expense and maximise the profit for farmers.”

After detailed researching, thinking and planning, Weiwei created original Kugou, which aims to install the terminals in the restaurants, and restaurant can place orders of vegetables. However, Weiwei Gong recognized that it is not enough to just provide services to restaurants, he need a more advanced tool and more powerful team. He believes that he could do better. Then, he instituted his own team to join this project and improved his ideas and products of Kugou together.

Overall impact

Kugou is an environment-friendly organization with the mission of achieving “producing products on sales prospects”, saving the natural resources.

Moreover, Kugou devotes themselves to omitting the intermediation cost of purchasing agriculture products and integrating a wide variety of basic services to customers with spending less money.

The short-term goal of Kugou is gaining more customers from offline and integrating more basic services, for example household services. In order to achieve long-term prospect: selling the agriculture products with lowest price in the market, even gain zero profit from sales, but gain profit from sales of other services, like financial service and advertising services.

Business benefit

Kugou has users from many communities, so, it is not just gain profit from sales of agriculture products, commissions of selling additional services like payment of bills and financial service, but also an advertising platform.

Weiwei Gong explained, “The reason why I said Kugou is an advertising platform is that the screen will automatically replay whether videos or electronic posters advertisement when no one is using the IOT terminal. Again, it has been installed at the entrance door of cooperative apartment building, thus there is a high possibility that people will notice the advertising when entering the unit.” To conclude, Kugou can earn more revenue from three main business, agricultural products, value-added services and advertisement selling.

Social and environmental benefit

Kugou has played a positive impact on both society and environment. It not only avoids the waste of agriculture products, but also has a positive effect on conversion of cropland to forest by producing products on sales prospects.

In addition, they are planning to create a “Super Farm” project which establishes state-of-the-art agricultural farms in Shenzhen, a city in southern China. Super farm will spend less energy, water and fertilizer in gaining the same amount of vegetables.

From society's aspect, Kugou is one of the 20 key supported e-commerce companies of The Peoples’ Government of Sichuan Province from 2014. It saves the time for household and office workers to have daily services, and also benefits the co-operative companies by selling their products in Kugou’s smart community terminal, such as the farms, agriculture factories, beer factories, banks, even other e-commerce companies (Taobao, Jingdong).

Interviews

Weiwei Gong, Chairman

Weiwei Gong, Director