Covestro collaborates with Chinese internet giant Alibaba as part of its digitalization strategy. The company has launched its online store on 1688.com, an online platform of Alibaba to sell chemicals. To start off with, it has started selling high-tech polymer materials from 23rd of April.
Alibaba is the most extensive B2B trading platform globally. Covestro will be selling high-tech material polycarbonates as well as pre-products for polyurethane foams, coatings, and adhesives on this platform. These products are available through its store under the link covestrochina.1688.com
The Chinese economy has shown a lot of progress in the recent years. Along with the development, a lot of innovation and digitalization has taken place. Covestro feel’s it has also contributed to the innovation and the growth story of the Chinese economy.
Dr. Markus Steilemann, Chief Commercial Officer and future CEO of Covestro said, “Digitalization rapidly changes customer needs and preferences and offers new business opportunities, especially in the fast growing Chinese economy.”
He also added, “For us, China plays a more and more important role not only in terms of market size but also with regard to innovation in relevant markets and technologies. With the launch of an online store on Alibaba we follow our strategy by innovating our business models in close cooperation with our customers.”
The reason behind this store is to offer customers a reliable, official channel with a simple and efficient purchasing experience. This store aims at fulfilling the needs of small and medium-sized customers. Covestro expects the transaction to be small but plans to use the feedback from the buyers to customize and improve its offering.
Xiaobin Zhong, Head of Commercial Operations for the Coatings, Adhesives and Specialties business of Covestro in the Asia Pacific region said, “We want to make the customer experience more convenient and efficient. Particularly in a market like China, which is at the forefront of digitalization, we need to be where the customers are and will be. 1688.com is that place.”
Initially, Covestro would be offering around 50 products on this platform. The next lot of products to be launched is already in the planning process. The company expects to generate a revenue of up to 1 billion euro by the end of 2019 from this platform.