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Silicon Dragon
Thanks to a friendship between Howard Schultz and Jack Ma and a thirst for business growth, Starbucks is also becoming a poster brand for New Retail or Digital Retail in China.
The new business is to introduce technology into the stores – artificial intelligence, augmented reality, robots, QR codes, mobile payments, mobile apps with more content that you need to know about everything in stores and fast deliveries.
Alibaba and Starbucks are far from the only ones looking for space in this new retail arena. The giant e-commerce and logistics company JD.com also owns a flagship store where it shows its technological prowess, namely the QM furniture store in Beijing. The new retail trade is now central, thanks to the commercial leave of 11.11 e-commerce, see the previous article. And Alibaba and JD.com have both launched into digitized supermarkets – Alibaba with Hema and JD.com with 7Fresh. Hema stores introduce the distribution center into the store, using conveyor belts that route orders to customers.
I've seen the new business at work now in several places in Beijing and Shanghai. This new concept, which is supposed to make shopping more efficient, simpler and perhaps more fun too, seems to appeal to residents. Chinese consumers, particularly the population of 415 million people living in China, are renowned for their rapid adaptation to new technologies.
Starbucks is backing several new services offered by Alibaba to increase its coffee orders in the face of fierce competition from local newcomer Luckin Coffee, which offers lower prices. The American brand sells on the Tmall market, uses Alipay and relies on Alibaba's Elibe delivery services to deliver coffee to customers online quickly – for a RMB 9 delivery fee. . Starbucks is also experimenting with a kitchen inside Hema, capable of handling large volumes and being efficient for the corporate market.
Starbucks is about to open 600 outlets in China this year, after 585 openings last year in this tea country. It currently has 1,400 stores in 17 Chinese cities. And the global plan is to have 6,000 stores in 230 cities by 2020.
As coffee is still new to many Chinese consumers, the growth margin is large – and Starbucks is ensuring that mobile Chinese consumers, on the rise, are well versed in how to consume coffee. There is a pairing bar in the store, which shows what goes well with the coffee. We already know that in the West: chocolate for one.
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Thanks to a friendship between Howard Schultz and Jack Ma and a thirst for business growth, Starbucks is also becoming a poster brand for New Retail or Digital Retail in China.
The new business is to introduce technology into the stores – artificial intelligence, augmented reality, robots, QR codes, mobile payments, mobile apps with more content that you need to know about everything in stores and fast deliveries.
Alibaba and Starbucks are far from the only ones looking for space in this new retail arena. The giant e-commerce and logistics company JD.com also owns a flagship store where it shows its technological prowess, namely the QM furniture store in Beijing. The new retail trade is now central, thanks to the commercial leave of 11.11 e-commerce, cf. previous article. And Alibaba and JD.com have both launched into digitized supermarkets – Alibaba with Hema and JD.com with 7Fresh. Hema stores introduce the distribution center into the store, using conveyor belts that route orders to customers.
I've seen the new business at work now in several places in Beijing and Shanghai. This new concept, which is supposed to make shopping more efficient, simpler and perhaps more fun too, seems to appeal to residents. Chinese consumers, particularly the population of 415 million people living in China, are renowned for their rapid adaptation to new technologies.
Starbucks is backing several new services offered by Alibaba to increase its coffee orders in the face of fierce competition from local newcomer Luckin Coffee, which offers lower prices. The American brand sells on the Tmall market, uses Alipay and relies on Alibaba's Elibe delivery services to deliver coffee to customers online quickly – for a RMB 9 delivery fee. . Starbucks is also experimenting with a kitchen inside Hema, capable of handling large volumes and being efficient for the corporate market.
Starbucks is about to open 600 outlets in China this year, after 585 openings last year in this tea country. It currently has 1,400 stores in 17 Chinese cities. And the global plan is to have 6,000 stores in 230 cities by 2020.
As coffee is still new to many Chinese consumers, the growth margin is large – and Starbucks is ensuring that mobile Chinese consumers, on the rise, are well versed in how to consume coffee. There is a pairing bar in the store, which shows what goes well with the coffee. We already know that in the West: chocolate for one.
