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December 14, 2018

Starbucks unveils first virtual store in China

Starbucks has unveiled its first virtual store in China in collaboration with online retailer Alibaba Group.

Starbucks has unveiled its first virtual store in China in collaboration with online retailer Alibaba Group.

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While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
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  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

The partnership was established in August to enhance the coffeehouse chain’s digital experience in China. Starbucks leveraged Alibaba’s Ele.me, Hema, Tmall, Taobao and Alipay platforms under the deal.

The virtual store offers one-touch digital experiences to customers by integrating the functionalities of the Starbucks app and Alibaba’s Taobao, Tmall and Alipay mobile apps.

It allows customers to earn points in Starbucks’ rewards programme for purchases.

“The virtual store offers one-touch digital experiences to customers.”

This is the latest partnership in a series of deals intended to strengthen its digital services. The coffeehouse chain recently partnered with food delivery platform Uber Eats and also piloted a Starbucks Delivers programme in both Tokyo and Miami.

The company now plans to expand the delivery programme to around 25% of its company-operated stores in the US in early 2019. Launched three months ago, the service is currently available across 2,000 stores in 30 Chinese cities.

Starbucks has also detailed plans to enhance its in-store experience, deliver beverage innovation and drive digital partnerships in the US. These include enhancing capacity and throughput by repurposing time spent on administrative tasks, deploying technology to automate inventory planning and replenishment and optimising real estate footprint and store renovation strategy.

In a move to drive digital relationships, the company plans to focus on new member acquisition and related spend lift, adoption of Mobile Order & Pay, and enhance its Starbucks Rewards loyalty programme.

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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