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Whole Village Operation: How do people come? How is the land used? Who pays the money? This is how this "hundred-million-yuan village" does it

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2024-09-19

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How do people come? How is land used? Who pays the money? These are 3 problems that rural development must solve. Taking Chengdu Pidu 7 Nongke Village, an "hundred-million-yuan village" I have visited many times, as an example, I will share with you in detail the three aspects of people, land, and money in rural development.

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Editor-in-Chief | Yang Ming

Editor | Jing Xiangyuan

Source |Zhuangzhubang

Nongke Village has an annual tourist flow of 2 million person-times, making it China's first "Nongjiale" (farm stay) village and the birthplace of "Nongjiale" tourism in China. With a development model of "land management + homestay cluster 4.0 + rural living room + whole village", after four stages: initial startup, development, consolidation, and leapfrog, it has grafted farm tourism onto its flower industry, becoming a model for rural tourism nationwide. It is the birthplace of "Nongjiale" tourism in China and one of China's top ten most charming leisure villages.

The overview of Nongke Village's development history consists of four arduous entrepreneurial experiences:

First Entrepreneurship: In 1983, Nongke Village reformed its land contracting system, breaking away from the traditional grain planting model and shifting towards the flower and plant industry.

Second Entrepreneurship: After 1987, with the rise of "Nongjiale" tourism, Nongke Village achieved an integrated development pattern of primary and tertiary industries.

Third Entrepreneurship: After 2000, joint efforts to build a new countryside led to "Nongjiale" tourism entering a standardized development stage, becoming a national AAA-level scenic area. In 2006, the National Tourism Administration granted Nongke Village the title of "Birthplace of China's Nongjiale Tourism".

Fourth Entrepreneurship: In 2018, with the start of rural revitalization, Nongke Village once again upgraded and re-emerged, creating an International Rural Living Room 7 Themed Homestay Cluster.

In fact, Nongke Village has also encountered difficulties in operation and management, such as: weakening primary industry (flowers and seedlings), decline of tertiary industry ("Nongjiale"), fewer and fewer "Nongjiale" businesses operating in the core scenic area... and most of them were not profitable. So, how did they solve the dilemmas of people, land, and money, and gradually grow stronger?

How do people come?

Government guidance + Market operation — Finding people

Under the guidance of the government, to achieve the upgrade of Nongke Village's core scenic area, You'ai Subdistrict guided "Sichuan Xushi Smart Culture and Tourism Co., Ltd.", a subsidiary of the local leading enterprise Xujia Dayuan, to partner with the village collective company "Chengdu Haitang Funong Agricultural Technology Co., Ltd." to establish Chengdu Nongke Village Scenic Area Management and Operation Co., Ltd., responsible for the overall implementation planning, packaging, marketing, investment attraction, and operation of Nongke Village. It was officially listed and launched on March 2, 2018.

Hired 10 local sage academicians, 18 expert consultant mentors, 5 wealth-creation leaders, 24 returning entrepreneurs, 72 skilled artisans, 2386 new and old villagers, totaling 56 businesses including individual operators and companies.

How is land used?

Combining the separation of three rights, various models such as transfer, joint construction, shareholding, leasing, and trusteeship are adopted. By attracting operators, investors, developers, and service providers, as well as introducing teams, capital, think tanks, brands, and major IPs, platform funds and strong investors are brought in to facilitate a "caging-out-birds-for-new-ones" transformation for existing businesses.

Relying on the development concept of the "Pan-Nongke Village" International Tourist Resort, a pattern of "one core", "two axes", and "three zones" has been formed: "one core" with Nongke Village Scenic Area as the core; "two axes" being IT Avenue and Yingbin Road; and "three zones" being Nongke Village AAAA Scenic Area, Shiyang Boutique Flower and Plant Viewing Area, and Ziyun Yangxiong Hometown Cultural Area. This promotes the transformation and upgrading of "Nongjiale" (rural hotels) and aims to create an "International Rural Living Room 7 Themed Homestay Cluster".

Who pays for it?

Government funding — Infrastructure construction

Collective funding — Public service facilities

Farmers' funding — Courtyard renovation

Enterprise funding — Industrial development

Adopting a diversified mixed ownership model where one village leads ten, through "one courtyard, one theme; three major guarantees; ten assistances; and joint operation bundling," 36 super brand IPs are introduced, attracting themed and characteristic homestays centered on cultural creativity, art, traditional Chinese studies, pottery, hot spring rituals, internet celebrities, tea ceremonies, logs, strange stones, etc. This brings together 72 sub-categories of products and 500 entrepreneurs.

1. Entrepreneurship Support: Enjoy government support policies for innovation and entrepreneurship in rural tourism.

2. Operation Support: Unified promotion, customer acquisition and traffic guidance, promotional activities.

3. Financial Support: Business loans, shareholder crowdfunding, renovation subsidies.

Ten Assistances: Policy alignment, development suggestions, product combination, resource integration, brand packaging, recruitment and stock offering, online media promotion, press release, supply chain, franchise, etc.

Joint operation bundling: Guaranteed rent (farmers) + operational dividends (management fees + approved room operating rights) = win-win.

Throughout the entire process, villagers first receive guaranteed rental income, then participate in collective dividends, can also work in scenic area positions providing services, or start businesses and earn money in the village.

According to Mr. Fan Guohui, "Honorary Village Head" of Nongke Village: Initially, there were huge challenges in attracting projects and capital. When setting up the operation and management company, our startup capital was only 200,000 yuan, which was barely enough even for inspection and reception expenses.A year later, Nongke Village attracted over 160 investment inspection teams and successfully introduced a dozen characteristic themed businesses from returning entrepreneurs, including art design, traditional Chinese medicine hot spring rituals, tea ceremony Zen meditation, traditional Chinese studies cultural creativity, parent-child parks, etc., driving 4 groups of original resident villagers to return home to start businesses and upgrade, achieving a total investment of over 100 million yuan.

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