Starbucks & Alibaba to transform sector with home delivery in China

Starbucks and Alibaba Group have announced a 'New Retail' partnership that will enable a seamless Starbucks Experience and transform the coffee industry in China.

Collaborating across key businesses within the Alibaba ecosystem, including Ele.me, Hema, Tmall, Taobao and Alipay, Starbucks plans to pilot delivery services beginning this September, establish 'Starbucks Delivery Kitchens' for delivery order fulfillment and integrate multiple platforms to co-create an unprecedented virtual Starbucks store.

This marks a historic moment as two iconic, global companies build on their distinct retail and technology strengths to revolutionise the customer experience. Leveraging the Alibaba ecosystem and New Retail infrastructure, Starbucks will be able to further unify a seamless Starbucks Experience between its stores and online for customers.

Kevin Johnson, Starbucks' president and CEO, said, “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.

'Our transformational partnership with Alibaba will reshape modern retail, and represents a significant milestone in our efforts to exceed the expectations of Chinese consumers. Starbucks China is one to watch, and I have full confidence in the team that will bring the new innovation behind the Starbucks Experience to life.”

Daniel Zhang, CEO of Alibaba Group, 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.”

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.