Three Questions on Apple's 'Sales Dilemma'
Published: May 15, 2026 | Author: Kaiyun News | Source: Official Release | Views: 1,234
Recently, the Ministry of Agriculture decided to organize an e-commerce sales month activity for apples nationwide, with sales from April 3rd to May 3rd.
It is reported that many e-commerce companies such as Alibaba Group, JD.com Group, and Suning.com Group participated in the 'Apple Sales Month Action'. Data released by the Ministry of Agriculture shows that within 3 days of the launch of the Apple E-commerce Sales Month Action, Suning had sold 3.075 million kilograms of apples, JD.com had sold 110,000 kilograms, and other e-commerce platforms are also connecting with production areas and fruit farmers.
As a traditional fruit with high nutritional value, suitable for all ages, why did apples encounter the 'inventory dilemma' in 2015-2016? How effective is selling apples through online and e-commerce platforms? Recently, a reporter from China Science Daily interviewed relevant issues.
Apple Overstock, What's the Reason?
Wang Shuguang, a fruit farmer in Dangshan County, Anhui Province, has finally breathed a sigh of relief these past few days. He planted more than ten mu of apples. The apples were harvested in mid-September last year, but only half of them have been sold until recently. 'The overstock situation has eased somewhat in the past few days. Ground apples are basically finished, and there are still cold storage apples left to sell,' he told a reporter from China Science Daily.
In Wang Shuguang's impression, this year's apple prices are the 'cheapest in recent years,' while a year ago, during the 2014-2015 sales season, apple prices reached their highest point. 'Last year, apples were sold for 2.6 yuan/jin, and this year they are sold for 7-8 mao.'
Why did local apples experience overstock? Huo Xuexi, a professor at the School of Economics and Management at Northwest A&F University of Science and Technology, stated in an interview with China Science Daily that this is a common problem not only in apples but also in the production of high-value agricultural products in China.
'In a production situation dominated by labor input, high-value-added agricultural products are very beneficial for increasing farmers' income. Driven by high comparative benefits of the industry, farmers' enthusiasm is relatively high, which is the fundamental driving force,' said Huo Xuexi.
'Precisely because fruits like apples have obvious benefits in increasing farmers' income, various regions have vigorously promoted their cultivation. Currently, the planting areas for apples are no longer limited to advantageous production areas. There is a certain degree of blind planting. The expansion has led to a significant breakthrough in the boundaries of previously established advantageous apple production areas. Some apples are planted in non-suitable or sub-suitable areas, which is also a very important reason,' said Huo Xuexi. In addition, the cost of apple production has also continued to rise over the past decade, especially since 2007.
From the demand side, the income elasticity of apple demand is relatively large. In other words, apples are not like grains, which are necessities; they can be eaten or not. 'As China's economy enters a new normal and people's income growth is relatively slow, domestic demand for apple consumption is insufficient,' said Huo Xuexi. 'At the same time, affected by rising costs, apple exports from production areas have also been impacted.'
According to a previous report from the U.S. Department of Agriculture, China's apple production in 2015-2016 was predicted to be 43 million tons, a year-on-year increase of 5%. At the same time, it was predicted that China's imported fruits this year would increase by 50% year-on-year, reaching 100,000 tons.
In addition, fruit farmers' 'hoarding' is also one of the reasons for the current overstock in some areas. Wang Shuguang revealed to reporters that due to the high selling price of apples last year, many local fruit farmers hoped to sell apples at the same high price when harvesting this year. Therefore, there was a mentality of 'reluctance to sell,' which led to a significant decrease in the number of purchasing merchants and sales volume.
Apples Are Still Not Cheap, Why?
While Wang Shuguang's apples were sold at a historical low price, the apple prices in the market seemed unaffected.
A reporter's visit to several supermarkets in Beijing found that apples priced at 4-5 yuan/jin were the average price, while apples with better appearance still maintained high prices. Many netizens also said that although there are many apples at the production site and the price is low, the apples they eat 'still cost several yuan each.'
According to the national apple market price information provided by the China Fruit Marketing Association, on April 1, 2016, the national wholesale average price of Red Fuji apples (200mm, Grade II and above) was 6.99 yuan/kg, and on April 12, this price was 6.24 yuan/kg.
The reporter learned that apples go through multiple stages from the tree to the sales terminal, including agents, packing, transportation, storage, wholesale, and merchants, and each stage incurs costs.
'Our logistics costs are very high, accounting for about 17% of the terminal sales price,' Huo Xuexi told reporters. 'In European and American countries, this proportion is 7%-8%.'
Although e-commerce sales, which go directly from the production area to the consumer, reduce some links, the logistics costs such as cold chain and distribution are very high. A market manager from a well-known e-commerce platform also revealed to reporters that when transporting fresh produce like apples, packaging materials must be used to ensure cold and fresh preservation, with packaging costs ranging from 4 to 8 yuan. In the distribution stage, the cost of delivery from centralized warehouses to consumers, the 'last mile,' is also extremely high.
In addition to logistics costs, real estate and labor costs in retail channels in large and medium-sized cities are also reasons for the high retail prices of apples at the consumer end. In other words, the considerable store rent, personnel expenses, etc., are all included in the selling price of apples.
In addition, according to media reports, although the state does not allow supermarkets to charge entry fees or stocking fees for agricultural products, in actual operations, if entering a supermarket or wholesale market, there are stall fees and entry fees, which are still a default unavoidable expense.
All these costs are ultimately passed on to consumers, causing the price of apples to soar after several transfers from the field to the consumer.
E-commerce Promotions for Apples, Feasible?
About 20 days ago, it was the most severe period of apple overstock in Dangshan County. Seeing apples rotting in the fields, fruit farmers were extremely anxious. 'Some fruit farmers only had a dozen catties left from a box of 40 catties of rotten apples,' said Wang Shuguang. Anxious fruit farmers posted information about apple overstock on Weibo, WeChat, etc., and he was one of them. At the same time, he also sold apples through online channels such as Weidian and WeChat Moments.
'The effect is quite significant,' said Wang Shuguang. 'Now goods are moving through various channels, with large trucks coming to pick them up, express delivery, and all sorts of methods.'
It is reported that Dangshan County has an apple planting area of 100,000 mu. 40,000 mu of early and mid-season varieties have been sold out. The late-season Red Fuji variety has 60,000 mu, with a yield of about 150 million kilograms. The unsold ones currently belong to this category of apples.
From the perspective of natural conditions, Dangshan, a 'hometown of fruits,' is a sub-optimal growing area for apples. Compared to advantageous areas, the quality of its fruits is not superior, making it difficult to sell at high prices in the market.
'Dangshan apples have a small planting area and are inherently a weak industry with insufficient conditions for brand cultivation. As for improving apple quality, since the low-end market was profitable in previous years, fruit farmers lacked the motivation to change,' said Zhu Qigao, director of the Dangshan County Apple Industry Development Service Center. When apple prices were high, Luochuan and Yantai apples could generally be sold for 8-9 yuan/jin, while the highest purchase price for Dangshan apples was no more than 4 yuan/jin.
In fact, nationwide, apples produced in advantageous areas, with good quality and high brand recognition, are selling very well and have been largely sold out. Although prices have fallen, the decline is not significant, representing a 'normal return' of prices.
The current 'tough nut to crack' in apple sales is mostly located in sub-optimal areas, or in advantageous areas but with poor management and operation. Various reasons have led to a large drop in prices and poor sales for these apples.
The 'Apple E-commerce Sales Month Action' organized by the Ministry of Agriculture aims to solve a large part of the sales of these types of apples. According to the issued notice, this activity aims to further promote the Ministry of Agriculture's relevant agricultural e-commerce action plan and fully leverage the important role of e-commerce in accurately matching supply and demand, reducing circulation costs, and promoting agricultural supply-side reform. Participating e-commerce platforms will operate on the principle of breaking even with small profits and multi-party win-win, allowing fruit farmers in apple-producing areas and consumers to share the achievements of 'Internet + Agricultural E-commerce.'
Regarding the organization of e-commerce sales for apples, industry insiders told reporters that it is a 'good thing' for fruit farmers, but how to ensure quality control is crucial.
A reporter opened the apple sales page of an e-commerce platform and found that the lowest selling price for apples was 4 yuan/jin, and consumer reviews included negative comments such as 'all rotten' and 'mushy.'
'For e-commerce, product quality and building trust are very important,' a nameless expert told reporters. 'The intention to help sell apples is good, but it may be difficult to truly solve the problem.' (Hu Xuanzi)