Cooperation with Alibaba is not Just for New Retail

11/12/2017

Pearl River Beer is an FMCG (Fast Moving Consumer Goods) company. Currently, the company has an annual production capacity of 2.2 million tons, with a total market capitalization of over 10 billion yuan. It is one of the top ten breweries in China, ranking nationally among the top 100 brands in China with great popularity in the South.

In recent years, traditional Chinese enterprises have been accelerating, transforming, and upgrading, and Pearl River Beer is no exception. Yet as a traditional industry, beer brewing has struggled to find a good point of entry to internet sales. To overcome this hurdle, Pearl River Beer and Alibaba formed a strategic cooperation agreement at the 2017 Cloud Conference.

Consumers expect instant gratification when it comes to purchasing beer, and ordering on the internet often takes more time. For this reason, the sale of beer on traditional e-commerce platforms have not been very good.

To solve this problem, the company established the O2O platform last year, which gives each bottle of beer a unique QR code. Once consumers scan the QR code on the bottle via phone, Pearl River Beer can collect data on the consumption time and place, to provide consumers with personal, customized services.

The platform is based on the same concept and technology behind Alibaba’s new retail strategy. The executives of Pearl River Beer can make adjustments and decisions based on the consumption information that is updated and reconstructed digitally. With Alibaba’s help, the company has transformed from traditional marketing to new retail to meet consumers’ growing demand for personalized experiences.

Alibaba will optimize the vehicle routing to improve logistics supply. Additionally, better inventory forecasts can be made, and using big data, the quantity and frequency of incoming goods can be predicted.

Perhaps in the near future when you’re craving a bottle of beer, your local supermarket will always have the style and brand of your preference in stock.

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