Lei Jun, founder and CEO of Xiaomi Inc, believes that rural Internet and enterprise services market are where future opportunities lie for Chinese start-ups, the co-founder of Shunwei Capital wrote in a recent article.
Lei Jun believes that the market opportunity for rural Internet concepts will be larger than anything seen in the past, as there are 800 million farmers in China.
The serial entrepreneur rejects the idea that the rural market would remain marginal because of low average disposable income. As he sees it, the opportunity arises in "information asymmetry."
"Apples are RMB0.5 per half kilogram when bought from the farmer, but are being sold for RMB5 per half kilogram in the supermarket. The ten-time price difference is where inefficiency lies and where start-ups can create great value," he wrote.
Rural financial se...
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