Leading Chinese beer maker Tsingtao Brewery Co Ltd and E-commerce titan Alibaba Group's LST branch signed a strategic cooperation agreement on March 14 in the eastern coastal city of Qingdao, Shandong province, to cement Tsingtao's position in millions of China's unchained mom-and-pop shops.

Alibaba's LST is a data-backed retail management system designed to digitize the business of millions of mom-and-pop stores and neighborhood convenience stores, in a bid to deepen the E-commerce giant’s omni-channel deployment.

The LST system now includes more than 1.2 million unchained stores across the country.

Tsingtao sold 7.14 million liters of beer in the first three quarters of 2017, revenue totaling 23.38 billion yuan ($3.69 billion). The Qingdao-based brewer has launched 1,500 beer products in over 20 different flavors.

"According to the cooperation agreement, Tsingtao's distribution network will be fully integrated in to the online retail platform of LST, helping enhance transparency, professionalism and efficiency," said Cai Zhiwei, Tsingtao's head of marketing.

The LST system is one of the latest examples of Alibaba's New Retail strategy, featuring customized manufacturing, seamless online-to-offline shopping, and precise demand-prediction based on big data and algorithms.

The Tsingtao Brewery Co Ltd and E-commerce titan Alibaba Group's LST branch sign a strategic cooperation agreement on March 14 in the eastern coastal city of Qingdao, Shandong province. [Photo provided to chinadaily.com.cn]

Lin Xiaohai (left), Alibaba vice-president and general manager of Alibaba Distribution Platform, pose for a photo with Cai Zhiwei, Tsingtao's head of marketing. [Photo provided to chinadaily.com.cn]