Chinese online retailer Tmall on Friday signed a memorandum of understanding (MoU) with Thailand’s No 1 rice exporter to sell jasmine rice through Alibaba’s omnichannel with the assistance of the Thai Ministry of Agriculture and Cooperatives.
Under the MoU, Tmall, a Chinese-language website for business-to-consumer (B2C) online retail operated in China by Alibaba Group, and Benjarong brand owner Asia Golden Rice, will identify 5,000 acres of land in Ubon Ratchathani province for producing jasmine rice for sale on Tmall, and also streamline the supply chain of jasmine rice production.
The rice will be distributed through Alibaba’s channels including Hema and Tmall with an omnichannel (online+offline) approach. Supply chain resources from the logistics network of Cainiao will also be integrated to ensure the speedy delivery of high-quality rice from Thailand to consumers on Tmall.
As part of Tmall and Benjarong’s deepened collaboration, the two parties will also collaborate in the area of new retail.
At the 11.11 Global Shopping Festival held by Alibaba this week, for example, Benjarong and Tmall will set up more than 100 rice vending machines at important business locations in Guangzhou, Shenzhen and Shanghai, to make Benjarong’s high-quality rice more accessible to Chinese consumers in an innovative way.
Jet Jing, vice president of Alibaba Group, said that Tmall can offer a lot of different scenarios for selling Thailand’s jasmine rice, solutions for targeted marketing, and online-offline business services along the supply chain.
According to Zheng Zheng, the person in charge of Benjarong, the Thai rice exporter has leveraged on Alibaba’s consumer insights to transform and streamline its global supply chain.
Benjarong, a leading Thai rice brand that entered the China market in 2002, started cooperation with Tmall in 2014. It has achieved more than 900 per cent of year-on-year growth through sale on Tmall in the first half of 2017.
To date, Benjarong accounts for about 50 per cent of Thai rice sales on Tmall’s platforms.