BMW and Alibaba Sign a MoU for Strategic Partnership Promoting Digital Transformation Across Businesses

On October 26, BMW and Alibaba signed a Memorandum of Understanding (MoU) for strategic partnership in Beijing. Adhering to the principle of “complementary advantages and win-win cooperation”, the both sides will leverage their own resources, and carry out comprehensive cooperation in branding, marketing, channels, end-to-end operations, services, information technology, etc., aiming to implement the digitalization strategy into BMW’s full business process, and enable dealers to provide an end-to-end and online-to-offline digital experience for customers.

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BMW and Alibaba management at the MoU Signing Ceremony for Strategic Partnership (from left to right): Mr. Sean Green, Senior Vice President of Sales and Marketing of BMW Brilliance Automotive Ltd., Mr. Jet Jing, Vice President of Alibaba Group and Secretary General of Enterprise Service for Alibaba Digital Economy, Mr. Jochen Goller, President and CEO of BMW Group Region China, Ms. Alice Mei, President and CEO of Lingyue Digital Information Technology Co., Ltd. (Photo: Business Wire)

Jochen Goller, President and CEO of BMW Group Region China said, “Cross industry collaboration and open innovation exchange are indispensable in accelerating the ongoing digital transformation of our company. As one of China’s leading tech enterprises, Alibaba has unique competencies in terms of digital technologies, large scale customer platforms and channels as well as targeted consumers operations. We are delighted to join hands to create holistic online-to-offline digital brand experiences for our Chinese consumers, and at the same time increase our portfolio of digital products and services.”

Jet Jing, Vice President of Alibaba Group and Secretary General of Enterprise Service for Alibaba Digital Economy, said, “As one of the most innovative international premium automakers, BMW is an industry leader with outstanding products and services. Now BMW is once again at the forefront of digital transformation, becoming the first auto manufacturer to leverage Alibaba Business Operating System (ABOS). This system will help accelerate the digital operations across BMW’s business segments, aiming to provide end-to-end customer-centric services throughout the product lifecycle and high-quality growth by expanding, connecting and serving customers in a more efficient way.”

Support dealers with digital technologies and accelerate business growth

According to the MoU, BMW and Alibaba will jointly launch the first online sales and services businesses engaging dealers among premium auto brands, to create a seamless end-to-end online-to-offline digital experience. In the future, online traffic will be directed to BMW dealers to create more business opportunities for them. In addition, with the assistance of Alibaba’s membership system, BMW and MINI will launch brands’ membership services and marketing campaigns on Alibaba’s various online platforms, to enhance customer loyalty, increase their level of activity, and drive business growth.

One stop convenient services to create cross-business and multi-scenario consumer experience

With the support of ABOS, BMW and its dealerships will accelerate the digital transformation of dealer network in China, with the aim at providing Chinese customers with more premium, convenient and personalized services and experiences in digitalization. In the future, customers can purchase BMW and MINI vehicles online, sign up as the brands’ community members with one click to obtain exclusive benefits, as well as make online reservation for services including test drive, repair, maintenance, etc. with the support of dealers. In the decision-making of car purchasing, online financial services will guide customers to the most suitable financial packages and convenient financial plans to meet diverse financial needs of customers.

In the future, BMW and Alibaba will work together with dealers to build BMW’s end-to-end operating system, aiming to provide customers with full-link service which integrates “car-viewing, car purchasing and car maintenance” on the multiple platforms of Alibaba’s ecosystem, such as Taobao, Tmall, Alipay and Amap. It aims to reshape the customer-centric, cross-business and multi-scenario service experiences.

Win-win cooperation to lead digital upgrades in the industry

Nowadays, digital economy and digital trade are thriving and changing the consumers’ expectation and consumption behavior. As an innovative international auto manufacturer, BMW is accelerating the digital transformation. In 2019, the BMW Group established Lingyue Digital Information Technology Co., Ltd to implement its digital strategy and promote BMW’s omni-channel marketing, sales management and customer lifecycle management in China. Lingyue supports BMW’s customer-centric operation transformation, creates more premium experience for customers as well as creating value for continuous growth of dealers and BMW.

In the digital era, business operations are undergoing transformation. Efficient digitalization represents a holistic and systematic upgrading process. Alibaba has drawn on its experience, capabilities and success fully integrating its diversified business using cloud computing and big data technologies to create ABOS, a unique service designed to support businesses with digitalization. ABOS helps companies by focusing on 11 major business elements: branding, products, sales, marketing, channels, manufacturing, services, finance, logistics and supply chain, organization, and information technology, which will enable end-to-end digital operation in the new era.

The partnership between BMW and Alibaba in digitalization is another proof point that BMW moves digital transformation into the fast lane. BMW becomes the first automaker to leverage ABOS. BMW and Alibaba set a new benchmark for the digitalization upgrades in the auto industry. In the future, the two sides will work together to support dealers in pursuing business growth opportunities, drive digitalization in the auto industry and auto life, and bring further benefits to customers and dealers.

About BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial and mobility services. The BMW Group production network comprises 31 production and assembly facilities in 15 countries; the company has a global sales network in more than 140 countries.

In 2019, the BMW Group sold over 2.5 million passenger vehicles and more than 175,000 motorcycles worldwide. The profit before tax in the financial year 2019 was € 7.118 billion on revenues amounting to € 104.210 billion. As of 31 December 2019, the BMW Group had a workforce of 126,016 employees.

The success of the BMW Group has always been based on long-term thinking and responsible action. The company has therefore established ecological and social sustainability throughout the value chain, comprehensive product responsibility and a clear commitment to conserving resources as an integral part of its strategy.

About Alibaba Group

Alibaba Group’s mission is to make it easy to do business anywhere. The company aims to build the future infrastructure of commerce. It envisions that its customers will meet, work and live at Alibaba and that it will be a good company that lasts for 102 years.

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