Page 56 - FoodFocusThailand No.155_February 19

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Transforming the Customer Experience
in the Coffee Industry in China

Marking a significant milestone for the two companies, Starbucks and Alibaba
poised to enable a seamless Starbucks Experience through deepened
partnership.
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.”
The strategic partnership is part of Alibaba’s broader New Retail push, which aims to transform
how commerce is conducted by merging online and offline experiences. New Retail was introduced
by Alibaba in 2016 and has since become a hallmark strategy of the retail industry.
Creating an unparalleled order and delivery experience powered by the Alibaba Ecosystem is
expected to significantly elevate the Starbucks Experience for Chinese customers. Many strategies
across key businesses within the Alibaba ecosystem have been developed as follows
Best-in-class Coffee Delivery Service through Ele.me: Working with Ele.me, China’s leading
on-demand food delivery platform with 3 million registered delivery riders, Starbucks will pilot
delivery this September in 150 stores located in key trade zones in Beijing and Shanghai with plans
to accelerate and expand its delivery program to more than 2,000 Starbucks stores across 30 cities
A deep, strategic “New Retail” partnership by the end of calendar year 2018.
from Starbucks Coffee Company (Starbucks) Both Starbucks and Ele.me collaborated to develop a unique, customized delivery infrastructure
(NASDAQ: SBUX) and Alibaba Group Holding that has been meticulously determined each step along the way, including dedicated Ele.me delivery
Ltd. (Alibaba) (NYSE: BABA) will enable a riders, precise delivery time, and custom carriers. Both companies have created a tailored order-
seamless Starbucks Experience and transform to-delivery Starbucks program that upholds the unparalleled experience and quality that customers
the coffee industry in China. Collaborating have come to expect in Starbucks retail stores. Through this delivery partnership, Starbucks and
across key businesses within the Alibaba Ele.me have pioneered a best-in-class coffee delivery service standard for Chinese customers.
ecosystem, including Ele.me, Hema, T-mall, Distinct Fulfillment and Delivery Capabilities through Hema Supermarkets: In addition,
Taobao and Alipay, Starbucks announced plans Starbucks will partner with Hema supermarkets to be the first retail brand to establish dedicated
to pilot delivery services beginning September “Starbucks Delivery Kitchens” within their locations. The “Starbucks Delivery Kitchens” will utilize
2018, establish “Starbucks Delivery Kitchens” Hema’s distinct fulfillment and delivery capabilities to complement the delivery of handcrafted
for delivery order fulfillment and integrate Starbucks coffee and tea beverages offered through existing Starbucks stores. Starbucks will also
multiple platforms to co-create an unprecedented leverage Hema’s highly effective consumer insights and unique fulfillment expertise to further
virtual Starbucks store – an unparalleled and penetrate and better serve the needs of individuals and families in communities across China.
even more personalized online Starbucks This intentional strategy will inform the future network planning for new Starbucks stores,
Experience for Chinese customers. combined with “Starbucks Delivery Kitchen” locations, to further expand the scale and reach of
The collaboration marks a historic moment Starbucks delivery services, while enabling our partners (employees) to continue to elevate the
as two iconic, global companies build on their third-place experience for the customer. Starbucks will open “Starbucks Delivery Kitchens” in
distinct retail and technology strengths to selected Hema supermarkets in Shanghai and Hangzhou as soon as September 2018, with plans
revolutionize the customer experience. to expand its presence to other cities over time.
Leveraging the Alibaba ecosystem and New Digital Innovations Transforming the Retail Industry: A key strategic initiative under the
Retail infrastructure, Starbucks will be able to partnership is the development of a pioneering, first-of-its-kind virtual Starbucks store in China.
further unify a seamless Starbucks Experience This digital partnership will see Alibaba develop a centralized online management hub, with the
between its stores and online for customers. unique capabilities to integrate and deliver a consistent Starbucks Experience across multiple
“Thanks to the elevated customer experience digital platforms. This innovation will transcend the traditional limitations of a single-app visit by
delivered by our over 45,000 partners, Starbucks providing the consumer an elevated, and even more personalized Starbucks digital experience
is growing and innovating faster in China than across the Starbucks app and Alibaba’s customer-facing mobile apps, including Taobao, Alipay,
anywhere else in the world,” said Kevin T-mall and Koubei.
Johnson, president and chief executive officer, This latest innovation will revolutionize the traditional offline-to-online model by effectively
S t ar buc k s Coff ee Com pany. “ O ur extending the reach of the Starbucks Experience into the everyday lifestyle ritual of the Chinese
transformational partnership with Alibaba will consumer, regardless of time or place. Whether it is at home or in the office, within a Starbucks
reshape modern retail, and represents a store or online, Starbucks customers will be able to access and enjoy a one-stop Starbucks
significant milestone in our efforts to exceed the Experience when purchasing merchandise online, buying a Starbucks handcrafted beverage to be
expectations of Chinese consumers. Starbucks delivered to a friend or sending a Starbucks gift of love on the “Say it with Starbucks” social gifting
China is one to watch, and I have full confidence platform. Starbucks will progressively integrate its Starbucks Rewards (SR) membership platform
in the team that will bring the new innovation onto the centralized system to leverage its consumer insights to deliver a truly personalized
behind the Starbucks Experience to life.” experience to its customers, while establishing a strong foundation for the future development of
Daniel Zhang, Chief Executive Officer of the Starbucks digital experiences in China.
Alibaba Group, said, “Starbucks is more than a Starbucks and Alibaba are trusted business partners who share common values in the spirit
destination for premium coffee and we share of innovation and the unrelenting pursuit of product and service excellence. This deepened
the same vision to pioneer a new coffee culture partnership is a significant step as both companies partner together to elevate the customer
and lifestyle through innovation and technology. experience across China.
56 FOOD FOCUS THAILAND FEB 2019

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