The great Chinese technology company Alibaba and Starbucks has recently announced a partnership in order to revamp the Chinese coffee industry. To fulfill this, both the companies will join their hands and merge the offline and online worlds and influence big data to attract new customers.
Talking about Alibaba, it has emerged from just an online marketplace to an influential marketplace which connects Chinese exporters, producers, and manufacturers with international businesses. Nowadays, the company is functioning in the E-commerce world and online retail spectrum. The company is now a major rival to Amazon in the fields of cloud computing and e-commerce. Not only this, Alibaba has also invested in different fields of the Internet spectrum such as mobile payments, AI, video streaming, social networks etc.
The techno titan companies have been doing assiduous work to establish a monopoly in the e-commerce world. With the advent of e-commerce, the companies like Alibaba have worked tremendously to keep head above the water right from purchase to payment and at last the final consignment to satisfy their consumer. The technical know-how will definitely be empowered with the new collaboration with Starbucks
Starbucks will set in motion from the coming September. It will begin the delivery service from Ele.me; Alibaba’s food delivery app which was acquired by Alibaba for $9.5 billion in the very beginning of this year.
In the initial stage, the delivery plan of Starbucks will be limited to 150 stores of Shanghai and Beijing. Further Starbucks has set the plan to reach around 1000 stores all over the country by the end of 2018. Not only that there will just be the availability of Starbucks in the Ele.me app but the special planning of Starbucks says Ele.me will also have the faithful Starbucks drivers.
Alibaba’s cashless Hema supermarkets came into existence last year which was followed by an investment made in the company a year before. The visionary channels of the store will allow the customer to shop online or in-store. The setup will track right from a purchase to payments through a process that involves mining big data. It will further build up consumer preferences and will recommend all the beneficial offers according to the taste of consumers. These futuristic outlets will now have “Starbucks delivery kitchen” too. This initiative will definitely broaden the efficacy of Hema Superstore.
Starbucks will be definitely benefited with this project as it will help it to take some augmented decisions where the demand for coffee is the highest.
Starbucks China CEO, Belinda Wong mentioned in a statement that “Through our partnership with Alibaba, we are breaking the home, office, in-store and digital space, making China the first Starbucks market to deliver a seamless Starbucks experience across all facets of our customers’ lives and further reflecting the uniqueness and strategic importance of the market.”
Starbucks is referring to this online-offline tie-up as a “virtual Starbucks store” which will enable a personalized digital experience that will also include a loyalty program where not only they can order a coffee, gift a copy to a friend or buy any merchandise.
Partnering with such a humongous technological company Alibaba is a cakewalk for Starbucks in terms of achieving higher profits in China. But for Alibaba, this shows us a part of a bigger move which is called ‘new retail’ to revolutionize commerce of the country. This move by Alibaba is beyond conventional mindsets. Collaboration with Starbucks is definitely going to help build Alibaba its monopoly over China.
To sum up we can say this transformational partnership seems a win-win for both the giants. The only thing to take care of is the execution of the project that will be most crucial in this deal.