Starbucks, Alibaba Partner
CHINA
Retail coffee leader Starbucks and digital titan Alibaba are working together to create a “New Retail” partnership in China.
New Retail strategies integrate conventional and e-commerce retail efforts with the goal of increasing sales while providing convenience for the consumer.
The project, announced in early August, is designed to create a “Starbucks experience” for coffee drinkers in China. The two companies will use Alibaba’s digital platforms to provide services for customers. “Starbucks Delivery Kitchens,” for example, would provide order delivery fulfillment and integrate Alibaba platforms to create a personalized virtual Starbucks store for each customer.
The delivery kitchen concept was projected to begin in September.
“Thanks to the elevated customer experience delivered by our over 45,000 partners, Starbucks is growing and innovating faster in China than anywhere else in the world,” said Kevin Johnson, Starbucks president and c.e.o. “Our transformational partnership with Alibaba will reshape modern retail and represents a significant milestone in our efforts to exceed the expectations of Chinese consumers.”
Daniel Zhang, Alibaba Group c.e.o., said, “Starbucks is more than a destination for premium coffee and we share the same vision to pioneer a new coffee culture and lifestyle through innovation and technology. Alibaba is thrilled to expand our existing partnership with Starbucks by leveraging our cutting-edge New Retail infrastructure and digital power to enable an unprecedented experience for consumers. This partnership is again a testament to the success of our New Retail strategy.”