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2025-01-19 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > Database >
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The sustained dividend released by the takeout business is constantly driving Starbucks' steady progress. Takeout sales accounted for about 6 per cent of total sales in China in the third quarter of fiscal 2019, making it a core source of profit contribution.
Back at this time last year, Starbucks partnered with ele.me to create a "special star delivery" just launched, some people expressed optimism, while others took a wait-and-see attitude. Now, a year later, Starbucks has proved one point with four quarters of results: with Ali's help, Starbucks can do well and expand its takeout business.
Admittedly, ele.me and word of mouth are the biggest contributors behind it. In the face of a "behemoth" like Starbucks, ele.me and word-of-mouth inherited Ali's profound skills in the new retail, and with phased and creative digital empowerment, they were able to join hands with Starbucks to create sensational and eye-catching achievements.
Open the door to a new world
The opportunity for Starbucks to join hands with Ali is clear. In the face of China's growing coffee consumption market, simple offline business has been difficult to meet all the needs of the Chinese market, so Starbucks changed its thinking and resolutely moved towards the takeout business. And Ali also needs a head catering brand like Starbucks to practice digital empowerment.
Starbucks actually had experience in food delivery before building a "dedicated star delivery" business with ele.me, but Starbucks' strategic focus has always been offline, and the turnaround began with the arrival of "dedicated star delivery". In view of Starbucks' position in the industry, ele.me customized quite stringent service standards for "dedicated star delivery" from the very beginning.
For example, specially developed distribution packaging and distribution boxes. In order to keep the drink at the right temperature before delivery, ele.me has designed a special cold / hot separation delivery box for Starbucks, which is equipped with an ice pack made of TPU, which can lock the temperature of the drink to the maximum extent and ensure the taste.
In addition, for the delivery speed, ele.me also conducted large-scale and long-term tests on "special star delivery". A total of 20 people, including the test team, in the simulated real distribution environment, conducted a centralized test for a period of 3 months, the test time is more than 2000 hours, the test distance is more than 12000 km.
The customized "dedicated Star delivery", which is generally higher than the daily distribution service standard, has brought qualitative changes to Starbucks in terms of membership size, membership experience and so on. In terms of the speed of delivery business, ele.me and Starbucks are also unequivocal. One year after the launch of "special star delivery", Starbucks and ele.me have reached 3000 stores in 100 cities.
Starbucks' membership is also growing at a considerable rate. According to the third-quarter results, Starbucks had 9 million Chinese members, up 10 per cent from the previous quarter. Obviously, the takeout business has contributed to such an increase in membership.
Starbucks, which has tasted the benefits of the takeout business, even expressed its willingness to "globalize takeout" as early as last November. Kevin Johnson, president and CEO of Starbucks, said in an interview that he wanted to replicate Starbucks' experience in the Chinese takeout industry to other countries.
So far, Starbucks has landed its takeout business in major global markets, including the United States, Japan, the United Kingdom and Mexico. Among them, one of the core markets, the United States, has more than 1600 Starbucks stores connected to the takeout business. It is not difficult to see that the takeout business plays a high role in Starbucks' development strategy, as well as Starbucks' high hopes for the takeout business. All this stems from ele.me, word of mouth and Starbucks' experience and achievements in food delivery in China.
Overall, over the past year, Ele.me 's customized "special star delivery" delivery business has opened a new door for Starbucks. This not only makes Starbucks better and better on financial data, but also allows the takeout business to infiltrate Starbucks' strategy and become one of the important drivers of its growth.
Behind the continuous nourishment of Starbucks' takeout business is ele.me and the digital "vertical and horizontal strategy" tailored by word of mouth for Starbucks.
The strategy of digital "vertical and horizontal"
The difference between the takeout business and the offline business lies in the addition of online scenarios, which means that Starbucks' digitization is a prerequisite for the takeout business. For ele.me, the digitization of catering businesses is not difficult, because ele.me and word-of-mouth are already good at local life.
However, Starbucks is something special, on the one hand, because of its strategic partner role, for ele.me and word-of-mouth, it needs to be optimized quickly to achieve digital empowerment for Starbucks, on the other hand, it lies in its size and volume. As of June 30, Starbucks has 3922 stores in China and has nearly 10 million members.
Therefore, the digital enabling proposition of ele.me and word of mouth for Starbucks must focus on "how to activate the potential consumers and potential spending power of Starbucks, and how to stimulate the spending power of existing members." Based on this, all the means of ele.me and word-of-mouth empowering Starbucks can be seen from the "vertical and horizontal" lines.
1. Vertical Line: technology and system
Different from the ordinary delivery business, because Starbucks aggregates the business of multiple entrances, ele.me has customized a unified management model for it. On the one hand, the unified mid-Taiwan management mode can unify the needs of different sources, and assign relevant distribution personnel, routes, etc., the overall efficiency is better than the multi-platform parallel management mode.
On the other hand, the Zhongtai management model makes it easy for Starbucks to output the same online adjustment strategy to different entrances at the same time. For example, there are 972 customized games on the Starbucks menu function page, and the middle mode allows Starbucks to cover all entrances when adjusting the menu in a timely manner.
Large-scale membership is another focus of ele.me and word-of-mouth to help Starbucks achieve digitization. Under Starbucks' existing online membership system, ele.me got through Starbucks' membership data, allowing members to view relevant membership data and use the same points function as Starbucks stores.
For Starbucks, the benefits of connecting with ele.me to the membership data system mainly come from three aspects. First, the convenience of registering and using members is significantly improved; second, directly convert ele.me members and traffic into Starbucks members; third, enhance users' educational awareness of Starbucks delivery business.
If China Taiwan manages and connects members to serve the overall efficiency of Starbucks' delivery business, then building an online smart store for Starbucks can be understood as strengthening the digitization of Starbucks brand power. In addition to Starbucks APP, apps such as Tmall, Mobile Taobao and Alipay all have such online stores, which exist in Starbucks stores on all platforms in the form of "flagship stores", which will undoubtedly make consumers closer to and more familiar with Starbucks delivery business.
It is not difficult to see that ele.me and word-of-mouth are in the vertical line of digital empowerment for Starbucks, the core logic is to create a basic centralized business platform for Starbucks, and then run through Starbucks member data. Fully integrate the favorable resources of the takeout business into this platform to help Starbucks achieve the training and growth of core data (membership).
2. Horizontal lines: traffic and scenarios
The two conditions for the continued growth of Starbucks' delivery business are sustained and huge external traffic and continued exposure to members. In the face of Starbucks' lasting diversion demand, Ali empowers Starbucks with daily traffic from super traffic entrances such as hand Amoy, Alipay and Tmall on the one hand, and explosive traffic from special festivals such as Singles' Day on the other.
At present, in addition to ele.me, tens of millions or even hundreds of millions of users, such as Alipay, word-of-mouth, box horse, Tmall, Taobao and so on, have been embedded in Starbucks' online business. For example, Starbucks' official flagship store in Tmall sells not only coffee ingredients, but also around Starbucks, which has the same delivery entrance as ele.me.
For Starbucks, this super-traffic matrix brings it a billion-level traffic exposure, in which different consumers in different scenarios will continue to generate distribution or logistics demand for Starbucks goods. When these requirements are connected to Starbucks' offline stores or warehouses, they will bring more membership to Starbucks.
In addition, ele.me also played a key role in traffic empowerment in Tmall's flagship store during the Singles' Day holiday. At 11:00 last year, Tmall party, ele.me shop and other scenes jointly distributed various delivery coupons and second kill coupons to consumers. During this period, in order to meet the full-time needs of users, Special Star delivery has implemented the method of not closing in some cities. This not only increases the utilization rate of coupons, but also further improves the stickiness of members to special stars.
To sum up, the logic of the horizontal strategy of ele.me and word of mouth is based on the solid aggregation technology platform built by the vertical line, so that Starbucks can achieve the maximum degree of "touch the net", so as to digest the beverage demand under various scenes and channels. To achieve the back-feeding of Starbucks membership size and brand strength.
New Starbucks
There is no doubt that during the year, under the digital multi-dimensional empowerment of ele.me and word-of-mouth, Starbucks constantly refreshed itself and gradually realized the transformation from the inside to the outside, becoming a brand-new Starbucks.
Inspired by ele.me and word-of-mouth takeout business, Starbucks showed a stronger desire for innovation. In July this year, Starbucks opened its first "Ka Kui" concept store in Beijing, focusing on "pick-up" and takeout. In fact, it has become a habit for Starbucks to put new business type into practice. As early as the end of 2017, Starbucks and Alibaba jointly opened the world's largest smart store to show the outside world its thinking about new retail.
"Ka Kui" is obviously different from Starbucks' most common third store. On the one hand, there are pick-up lines and independent areas specially set up for ele.me distribution riders; on the other hand, curry is mainly for customer pick-up and delivery needs. In Starbucks' vision, Ka Kuai not only needs to reduce pressure for the surrounding third-space stores, but also to further meet the different needs of consumers.
But in essence, Ka Kuai can be seen as a combination of the third space store and the delivery business, and this combination is smaller, but "five internal organs are complete". In addition, it has to be mentioned that precisely because Starbucks sees the huge demand for takeout business and has established digital channels with the help of ele.me and word-of-mouth, it will consider innovating in the format to better expand the scale of its business.
There is no doubt that Starbucks has achieved the fundamental evolution of genes, with keen digital genes. Starbucks, which has been nurtured by ele.me, word of mouth and Ali digital empowering for a year, is constantly strengthening its digital ability and strengthening its new retail genes.
What we see is a Starbucks whose inherent innovation and competitiveness have been fully stimulated.
Long-term growth
A year ago, Ali brought Starbucks to the new track, and a year later, Starbucks had a plan for the new track.
This confirms the power of digital empowerment, and it turns out that there is unimaginable room for growth in such a large retail body of Starbucks, as long as we use the right method and go the right way.
Of course, back to the original intention of ele.me word-of-mouth to empower Starbucks, it is nothing more than two words: growth. For Starbucks, the word could be more specific, that is, long-term growth.
The good performance of financial data and innovative practices has exposed Starbucks to a significant driver of long-term growth-the new retail business on the digital cornerstone. And in the past year, Starbucks has fully demonstrated this methodology, including the global promotion of takeout, the integration of takeout and offline stores, and so on.
More importantly, Starbucks is developing at the pace it likes. To some extent, the growing good news after partnering with ele.me also shows that Starbucks, the world's largest coffee chain, has strong control and adaptability to new retail.
Moreover, Ali will always stand firmly behind Starbucks to help it extend this digital "long board". Coupled with the expanding store size of Starbucks and the growing membership around the world, Starbucks can confidently step into the broad road of long-term growth.
(official account of Liu Kuang / tr. by Phil Newell) ID:liukuang110
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