Microsoft’s China Wing announced on 20th May 2021 a strategic partnership with the Chinese Retail tech company to work on cloud-based software for store operators worldwide. The deal paves the way for Microsoft’s entry into the retail industry that is now operating online owing to the pandemic.
With the surge in covid cases and many retail stores going online, the need to integrate offline with internet-based sales has increased. This is known as Omni-channel retail. The grocery tech market entry of Microsoft will be analysed closely by observers everywhere. Joe Bao, China strategy officer for Microsoft, said that retail is one of the industries that seen the most significant disruptions in recent years. He also said that this partnership would benefit China Market and help bring Chinese technology Overseas. This deal is also a result of Microsoft working with Hanshow for five years.
At present, Hanshow’s primary customers are supermarkets in China and Europe. The partnership will include collaboration on internet-connected, or internet of things, technology.
As part of the deal, Hanshow will be using Microsoft’s Office 365 software, such as Word and Dynamics 365. A cloud-based customer relationship management system revealed Gao Bo, who works as a chief architect at Hanshow. He said the two companies would share their global client network and be jointly launching a research and development team soon.
Gao said that since Globalization is one of Hanshow’s essential business strategies, the company would focus on understanding local laws and culture when entering a foreign market. They will also be looking into if their work has been significantly affected by international trade tensions or not. This company was founded in Beijing and now has offices worldwide and very recently set up in a new office in the USA.
Microsoft entering into the grocery tech market with a Chinese Tech Company is a strategic move that only helps Microsoft further its prospects in the Chinese Mainland.