Shanghai Operation Center of Tingyi (Cayman Islands) Holding Corporation and Alibaba's LST formally signed a comprehensive strategic cooperation agreement on November 2, 2018. In the future, with the help of Alibaba's LST platform, Tingyi (Cayman Islands) Holding Corp. will jointly launch a series of cooperation including store digitalization, supply chain digitalization, marketing digitalization, decision digitalization, etc. with LST to build an intelligent distribution network to connect traditional offline sales channels with a "central processing unit". The visualization relation established among consumers, goods and markets will help usher in the digital era and millions of small shops upgrade new retail in an all-round way, thus creating shared value.
Photo: Joey Chen, chief customer officer of Tingyi (Cayman Islands) Holding Corp. and Lin Xiaohai, vice president of Alibaba Group and general manager of Alibaba's LST, witnessed the important moment together.
--- Working together to realize integration, symbiosis and win-win results
The rapid development of China's consumer market, especially the rise of China's new middle class, has brought forth a new demand for personalized consumption of retail products and services. At the same time, traditional retail channels are also facing the challenges of fragmented channels, diversified consumption scenarios and rapidly rising labor and store rental costs under the trend of the Internet. It is thus an irresistible trend to release the efficiency of traditional retail channels in a faster way.
Photo: Lin Xiaohai, general manager of Alibaba's LST, delivered a speech at the signing ceremony
Tingyi (Cayman Islands) Holding Corp. has maintained its leading position in instant food by virtue of the "sales network expansion" mode. Foreseeing the ongoing changes in the retail mode, the instant food maker has explored the channel digitalization upgrade, big data and artificial intelligence in recent years. It has independently developed an intelligent distribution system for sales channels and a big data artificial intelligence platform. Meanwhile, it has made predictions about the business circle through machine learning, striving to realize responsive distribution of goods on the existing sales mode and rapidly respond to consumers' demand. Lin Xiaohai, general manager of Alibaba's LST, also made it clear in his speech that 2019 will mark the first year of digital channel transformation.
On the basis of past experience, the cooperation will enable Tingyi (Cayman Islands) Holding Corp. to utilize the technology advantages of LST, to speed up the digital channel upgrade and use technologies to empower businesses. By jointly building channels, it will help traditional channel partners such as distributors, wholesalers, store owners to achieve efficiency and modernization, and guide the sound development of the industry.
--- Embracing the Internet to help stores keep running
The well-developed big data technology has brought the dividend of precision marketing, and online retail has also realized the customized sales model quickly with the help of this technology. However, offline retail channels, especially small shops with extremely limited sales scale, can hardly enjoy the dividends of the big data era. Under the agreement, the two sides will gradually realize digitalization and visualization of the purchase-sell-stock data of millions of small shops through cooperation in data information sharing and co-creation of marketing modes. The data tracking and analysis will be extended offline to help millions of small shops more intelligently stock up goods according to the purchasing preferences of surrounding consumers and launch marketing campaigns to consumers accurately and effectively.Personalized services will be realized offline as a result. Through the intelligent retail mode, the return on investment of offline shops will also be significantly improved.
Customized stores will keep emerging from today. The goods provided by stores are newer and richer. The products consumers want to obtain will always be displayed in the place with the easiest access. Stores also tend to know what consumers need. The customized stores will always exist in everyone's daily life, keeping providing friendly services.
Wang Degang, the newly appointed vice president of the beverage division of Tingyi (Cayman Islands) Holding Corp., said in an interview after the event that through this cooperation, the company can more effectively expand the sales channels of the brand and further expand its market share in traditional channels. At the same time, the two sides will jointly explore the penetration in various channels and the integration of supply chains, and jointly innovate the business-to-business-to-consumer-to-business marketing mode.
Some insiders pointed out that the cooperation this time will not only effectively promote the digital transformation of retail channels, but also accelerate the pace of integration of traditional economy and Internet, and will have a profound impact on the deep integration of real economy and digital economy.
Tingyi (Cayman Islands) Holding Corp. was founded in 1992. After 26 years of development, it has now developed into an instant food giant with annual sales of nearly 60 billion yuan and 900 million consumers nationwide. It was selected as the national brands project of Xinhua News Agency in 2017. At present, the major businesses of the group have already occupied a prominent market position in China's instant food market, and many of its products are favored and supported by Chinese consumers.
While Alibaba's LST is a one-stop service online platform launched by Alibaba B2B business group for offline retail shops, in a bid to provide intelligent ordering, logistics, marketing and value-added services for urban community retail shops. As yet, it has covered more than 1.2 million retail shops.
A single purchase
