Home Ecommerce How Alibaba Helps CPGs Like Unilever Grow Globally

How Alibaba Helps CPGs Like Unilever Grow Globally

SHARE:

ChineseDuring his first US appearance, Alibaba CEO Daniel Zhang pledged the commerce giant wanted to help brands with cross-border commerce, not that it planned to expand into the US market.

It appears he is making good on this strategy.

Alibaba on Monday formed a strategic partnership with consumer packaged goods brand Unilever in order to reach more Chinese consumers. In addition to expanding access to Unilever brands like Dove and Lipton, Alibaba revealed it would help Unilever with its digital ad strategy by integrating online and offline marketing efforts.

Using Alibaba’s ad network and marketing services platform Alimama, advertisers can buy on a cost-per-click basis display or affiliate links on Alibaba properties as well as Alimama’s Taobao Affiliate Network partners. A brand can set demographic and geographic targets using Alibaba’s auction-based bidder, and tailor creative based on product availability and price.

Unilever will use Alimama for audience targeting based on consumer data it collects from 100 million daily active users. It will also run a two-day flash-sale promotion, offering Tmall (Alibaba’s business-to-consumer marketplace) users 50% off products in Unilever’s global Tmall store.

Alimama’s marketing services generate about 60% of Alibaba’s revenue. This revenue is driven by the 8.5 million merchants on its platform, many of whom distinguish themselves either through direct marketing or by identifying user behavior for affiliates to tap into. A number of advertisers use Alimama, which merged with the Taobao Affiliate Network to fuel Taobao Ad Network and Exchange for network buys.

Unilever itself is a seller and advertiser and sponsors custom units on Tmall, such as a rotating banner for featured promotions and discounts to select stores.   

Unilever also has an offline component to its ecommerce and marketing strategy on Alibaba.

“One of the key highlights of the Alibaba/Unilever partnership are the unique QR codes printed on Unilever products, which extend it as a touch point with consumers,” said Gene Cao, a senior analyst at Forrester. “[More data] for marketing and advertising will be generated around these QR codes.”

Because Chinese brick-and-mortars have to deal with counterfeit merchandise, Alibaba created a product verification program this year called Blue Stars, which allows consumers to scan a QR code on partner merchandise and verify its authenticity online using Alibaba’s massive product database. Brands like L’Oréal and now Unilever have signed on.

“Online payment services like Alipay [Alibaba’s payment processor] and QR codes are often the most convenient way for rural customers to buy and verify goods,” noted Jin Di, a Chinese ecommerce and business strategy analyst for Forrester. She said this data will make Alibaba’s service “stickier,” and ultimately strengthen Alimama’s data capabilities.

A number of CPG manufacturers are trialing new retail integrations to reach urban and rural Chinese consumers, said Cao. P&G played up social marketing and partnered with the Chinese equivalent of Buddy Media, Social Touch, to create brand awareness. Nestle built a centralized command center to analyze customer behavior on social, ecommerce marketplaces and other publishers.

He added: “[You see CPGs] using cross-channel digital analytics to aid their local marketing, sales and R&D efforts.”

 

Tagged in:

Must Read

Single continuous line drawing robot riding pencil rocket flying in the sky. Tech education and creativity. Future technology development. Artificial intelligence. One line design vector illustration

Q3: Omnicom’s Media Business Is Growing, But Is It Agent-Proof?

If AI agents can plan and buy media, who needs a holding company? Good question. It came up during Omnicom’s Q3 earnings on Thursday.

Netflix Touts New Measurement Capabilities As It Struggles With “Modest” Engagement Growth

Netflix’s revenue grew 12% YOY to $12.9 billion in Q3, which it maintains is in line with its forecast. Its ads business, however, is lagging slightly compared with expectations, causing Netflix to tweak its forecast for the rest of the year.

Apple Publishes Its Plan To Wipe Out Web Tracking

Apple is coming for identity resolution. WebKit’s latest tracking crackdown targets the infrastructure behind post-cookie IDs – and switching to a first-party setup won’t necessarily spare vendors.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

AI Slop Sites Are On The Rise. Is Ad Tech Ready For Its New MFA Challenge?

Advertising supply chain intelligence company DecryptAds uncovered more than 2,100 AI-generated recipe sites that are monetized with programmatic ads and feature fabricated author profiles.

How Australian Home Lender Lendi Measures The Invisible Work Of AI

Most brands and businesses are trying to figure out how to improve their metrics when it comes to AI – and also what those metrics even are.

AI Startup Minerva Built An Agentic CDP, But Don’t Call It That

Minerva wants to turn fragmented customer data into something marketers can use, with AI agents doing the work behind the scenes.