Covestro Joins Chinese Alibaba Platform
German engineering plastics producer Covestro has opened what it calls a “flagship store” under the link covestrochina.1688.com on the online platform of Chinese internet giant Alibaba.
Products the company will sell on the biggest online business-to-business marketplace in the People’s Republic will include the engineering plastic polycarbonate as well as starting materials for polyurethane foam, coatings and adhesives, the mainstays of its portfolio.
As a start, around 50 products will be offered on the platform, and the launch of a second wave of products is already in planning. The former Bayer MaterialScience estimates that new forms of online commerce will contribute as much as €1 billion to its accumulated sales total up to the end of 2019.
“Digitalization rapidly changes customer needs and preferences and offers new business opportunities, especially in the fast growing Chinese economy,” said Markus Steilemann, current Chief Commercial Officer and future CEO of the engineering plastics producer.
He noted that the Chinese economy has recently shown tremendous progress in innovation and digitalization, to which Covestro will be able to contribute.
“For us,” Steilemann commented,” 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 are following our strategy by innovating our business models in close cooperation with our customers.”
Covestro said its main goal is to offer customers a reliable, official channel with a simple and efficient purchasing experience. With order volume limited at the outset, the flagship store will be tailored primarily to the needs of small and medium-sized customers.
