Digitalisation: The Key to Swire Coca-Cola China's DTC Success

Swire Coca-Cola has embraced digitalisation as a core strategy, seamlessly integrating digital solutions across all operations – from supply chain and manufacturing to logistics, sales, and commercial execution. Here are some ways that Swire Coca-Cola China is leveraging digitalisation to excel in the direct-to-consumer (DTC) channel.
 
Engaging Consumers in the Digital Age
 
Consumer engagement is crucial in DTC marketing. Our China Team employs a comprehensive approach to connect with its audience, including leveraging smart vending machines, unique transaction codes, and innovative mini-programmes.
 

1. Smart Vending Machines: The Digital Retail Frontier
    
   Swire Coca-Cola has deployed over 20,000 smart vending machines across the Chinese Mainland. These machines serve as a crucial DTC channel, offering Swire Coca-Cola invaluable insights into consumer behaviour. By analysing data on purchase location, timing, and specific beverage choices, and combining it with weather and seasonal trends, sophisticated algorithms can suggest optimal restocking strategies and product combinations for nearby stores. This data-driven approach also helps to estimate the sales potential of new products and formulate effective sales strategies.
    
   
    
    
2. Unique Transaction Codes (UTC): A Gateway to Consumer Insights
    
   Since 2022, Swire Coca-Cola has partnered with Coca-Cola China to introduce a Unique Transaction Code (UTC) marketing strategy. Each bottle cap or can pull-tab features a unique QR code. Supported by Coca-Cola's annual marketing campaigns in the Chinese Mainland, scanning these QR codes to collect points and redeem prizes has become a habit for many consumers.
   
   In 2023 alone, Swire Coca-Cola sold over 30 billion bottles in China, which provided deep consumer insights and expanded their membership pool. As a result, many popular brands within Swire Coca-Cola have adopted these QR codes to enhance their marketing reach.
    
    
3. "Everyday Coke" WeChat Mini-Programme: Unleashing Member Potential
   
   
   

   Three years ago, Swire Coca-Cola China launched the "Everyday Coke" WeChat mini-programme to engage consumers. It follows a three-step plan to achieve the goals of member acquisition, activation, and conversion.
    
   

   • Member Acquisition Phase: Precision marketing activities, such as bottle cap scanning and member referrals, have boosted membership from over 1 million to more than 10 million in just two years.
      
   • Activation Phase: Daily check-ins for points and point redemption for gifts have maintained high monthly retention and participation rates.
      
   • Conversion Phase: By distributing coupons and discount vouchers, consumers are encouraged to purchase beverages from vending machines or partner retail stores, which drives offline sales.

Through its DTC capabilities, diverse marketing strategies, and innovative interfaces like QR code scanning and mini-programmes, Swire Coca-Cola China has built a robust pool of over ten million members. This digital ecosystem enables swift market feedback collection, enhances new product launches, and drives direct sales conversions.

The core value of digitalization lies in the ability to simplify complex operational processes. As a leading bottler in the beverage industry, Swire Coca-Cola is committed to driving digital transformation. By leveraging AI technology and digital tools, we aim to explore new avenues for business development and maintain our competitive edge.