Chinese e-commerce giant Alibaba Group Holding Ltd. formally signed a strategic partnership agreement with British-Dutch company Unilever to help the consumer products group reach more Chinese shoppers.
The partnership between Alibaba and Unilever, signed in Hangzhou on July 20, allows Unilever to expand its distribution channels to reach patrons in rural China.
The maker of Dove soap, Lipton tea and Ben & Jerry’s ice cream will also use data from Alibaba's online marketing unit, Alimama, and its cloud business to improve its digital advertising strategy.
“The introduction of a new product into China through traditional retail channels often needs to go through a long period of time between regulatory review and establishment of distribution, while e-commerce platforms present a cheaper and easier alternative,” said Jeff Zhang, head of Alibaba's China Retail Marketplaces division.
Alibaba CEO Daniel Zhang said in a statement that they are very pleased to amplify their partnership with an industry leader such as Unilever.
Still, both companies did not give further details on the financial terms of the partnership.
“The company will introduce brands currently not available in China through Alibaba's platforms,” said Unilever North Asia president Marijn van Tiggelen in an interview with a Chinese online newspaper.
It was 1986 when Unilever first entered the Chinese market. Today, the global consumer goods company only offers around 20 of its more than 400 brands.
Unilever posted a 2.7-percent sales decline last year, with the Chinese market having recorded declines of over 20 percent in the last three months of 2014. The decline was caused by the slowdown in China, forcing retailers to cut on inventories.