PepsiCo Greater China Region (GCR) has signed a strategic agreement with Chinese internet giant Alibaba Group.
The collaboration enables the beverage conglomerate to further enhance consumer experiences by leveraging Alibaba's data to introduce innovative marketing initiatives, customised products and integrated omnichannel solutions.
"Developing our e-commerce business is one of PepsiCo's strategic priorities," said Mike Spanos, PepsiCo GCR president & CEO.
"Through this collaboration, we will fully take advantage of Alibaba's platform and data to carry out more innovative experiments, perfect PepsiCo's products and services, and enhance online consumer experiences. Our joint effort with Alibaba will help us lead the ever-changing consumer trend and better serve Chinese consumers."
Jet Jing, vice president of Alibaba Group said: "We are pleased to collaborate with PepsiCo, a leading multinational company. Alibaba Group is committed to enabling brands by helping them leverage our big data capabilities and omnichannel solutions to further drive strategic growth in the China market."
The strategic agreement is built upon the existing success arising from the two companies' e-commerce partnership. Since establishing a flagship store on Tmall in 2012, PepsiCo has launched a series of innovative online marketing initiatives. Recent examples include PepsiCo's 2016 Super Brand Day, Quaker's co-branded campaign with Tmall during Alibaba's 11.11 Global Shopping Festival, and a Kumamon-branded Lay's gift campaign during Chinese New Year. In addition, PepsiCo expanded its reach in rural China by leveraging the distribution channels through Alibaba's Rural Taobao program.