Unilever (NYSE: UL) and the Alibaba Group (NYSE: BABA) have announced a strategic partnership between the two companies on July 19th that will allow Unilever to reach customers all over China through the use of Alibaba’s online marketplace, Tmall, while expanding their distribution channel with help from Alibaba’s online marketing business, Alimama, and improving their digital advertising strategy with Alibaba’s cloud service.
The major collaboration areas between these two groups include Big Data, consumer protection, cross-border e-commerce and penetration in rural China.
Reaction of Alibaba’s CEO
The Chief Executive Officer of Alibaba Group, Mr. Daniel Zhang commented that Alibaba is looking ahead to build on their success in sales and ensuring the collaboration between the two groups are taken to the next level. Going forward, Unilever and Alibaba group are going to jointly start their innovations in Big Data analytics, supply chain management and e-commerce across the border. Since the business scenario is extremely dynamic and is changing quite rapidly. Alibaba is committed towards providing a higher value to the merchant on a continuous basis and providing better shopping experiences to its shoppers.
Alibaba has been successful in changing the way shopping is being done by the Chinese consumers. The mission of the company is to ensure that the business is easily done everywhere while the group’s vision is making sure that the infrastructure of commerce is flourishing in the future. The company’s vision and mission will meet Unilever’s needs for development in China. The North Asia President of Unilever, Mr. MarijnVan Tiggelen stated that Alibaba is known for its innovative thinking and is the leading internet company in China. It is not just an online store, but also offers a solution platform for e-commerce logistics, e-finance and online payment.
The agreement- an important milestone
The agreement between the two groups is an important milestone in a partnership that was initiated about five years back through a single Tmall store that has witnessed steady growth on a strong foundation of success and mutual trust over the past few years. Through this partnership deal, Unilever and Alibaba group will work closely to:
• Amplify cooperation so that the distribution channels can be expanded especially for all those consumers who live in the rural area so that they too can conveniently get the products of Unilever.
• Strive towards making Tmall as the global Unilever store by offering a wide selection of products of Unilever from across the globe and promote cross-border e-commerce.
• Optimization of the digital advertising strategy of Unilever by expansion of application of Big Data. Reach a greater number of customers through integration of both online and offline retail activities and through the online marketing business of Alibaba.