Study On Opening Rural Consumption Market In China Based On Circulation Network Organization

The rural consumption market is the largest and most potential market in China. Opening up the rural market could improve farmer's income, and guide the rural consumption, agriculture and the rural economy which is good for maintaining stability and development and is good for the construction of new socialist in rural areas. However, there are some difficulties faced during the process of opening up rural consumption market, which contends two aspects: rural consumption market's effective demand of consumption is two low and the rural consumer market's effective supply also is inadequate. To improve effective supply and demand, this paper is going to solve the problem based on the circulation network organization. Through anglicizing the circulation network organization theory, and some success stories from the practical experience of circulation network organization both at home and abroad, we could come to a conclusion that circulation network organization is an effective way in developing the rural consumer market. In view of this, this paper built a rural consumer market development model based on circulation network organization. Using this model, farmers can increase sales of agricultural products through the network organizations, and increasing their income of peasants, ultimately, increasing the effective demand in rural consumer markets; On the other hand, production enterprises can increase the effective supply of production through the network of consumer goods. So that the farmers and circulation enterprises would be able to reap excess profits, and the rural market could be open as well. The model consists of three major elements - operating platform, contact organizations, intermediary organizations. These three elements work with each other: Government provides a platform for enterprise core competencies, and training of intermediary service organizations provide the basis for enhancing the level of the enterprise core competencies which in turn support the cultivation of operating platform and the protection of the normal operation of an effective intermediary services. On how to tap the rural consumer market from the perspective of the circulation network organization makes policy recommendations that the need to develop the rural consumer market, the Government should support operating platform, enterprises must improve the core capacity, intermediary organizations, In conclusion, this study not only add to the theory of rural consumer market development, but also provide a new insight on how to develop the rural consumer market, and therefore this study has some practical significance.