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Haidilao’s valuation crosses HK$110 billion after its collaboration with Alibaba Cloud

Haidilao International Holding Ltd, is a chain of hot pot restaurants founded in Sichuan Province, China in 1994. Its restaurants typically operate under the name Hai Di Lao Hot Pot.

Recently, Haidilao’s gains were gratifying. On the 22nd, it closed up 4.01%, hitting a record high. Since 2019, the cumulative increase has been about 25%, and the market value has officially exceeded HK$110 billion. Behind the continuous rise, Haidilao has accelerated the layout of domestic as well international markets and there is also a new retail dividend centred on user experience and digital transformation with Alibaba Cloud.

Haidilao's Data
[BlueTechnology]
According to the data monitored by the National Gold Research and Innovation Center, the number of newly opened stores of Haidilao exceeded 20 at the end of 2018. It is stepping up the development of domestic low-tier cities and international markets. Currently, it has more than 30 million registered members and is expanding rapidly. At the same time, as a cross-regional direct-service catering brand, Haidilao relies on digital technology to provide a unified and innovative service experience for users around the world. Aliyun helped the traditional catering company to replicate the digital capabilities of Alibaba.

With the “Shuangzhongtai” architecture, Alibaba Cloud has created a new intelligent service system for Haidilao, which has improved the performance of the original system by 18.6 times. The original membership activity, which took a day to complete can now be completed in just one hour. Not only that, but the system can also “remember” the different tastes and preferences of 30 million registered members and easily support around a billion users in future. It can also support the marketing activities of millions of participants and realize “thousands of thousands of people”. Dr Zhou Zhaocheng, chief strategy officer of Haidilao, said that the new technology has enhanced the connection between operators and consumers, improved operational efficiency, enhanced the customer experience, and enriched the scenes and possibilities of Haidilao serving customers.

In 2016, Alibaba first proposed a new retail concept, and since then the company has been at the forefront of retail theory and practice. On January 11, 2019, Alibaba officially launched the “Ali Commercial Operating System”, hoping to help more companies promote digital transformation with digital technology.

Alibaba campus entrance
[BlueTechnology]
Alibaba Cloud is seen as a port for providing digital technology capabilities, exporting Alibaba Group’s intelligent, digital capabilities through a cloud platform. With the development of digital technology, more and more enterprises and Alibaba cloud carry out technical cooperation to create new business value. Alibaba Cloud will enable the whole society’s “new retail” to accelerate the digital transformation of enterprises.

While talking about the reasons to choose to cooperate with Alibaba Cloud, Haidilao Chief Information Officer Dr Shao Zhidong said, “Alibaba Cloud has a strong comprehensive strength and reliable professional skills. It is a team with faith. It can carry national and internationalized computing and platform deployment.”

-Blue Technology

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