Total (China) collaborates with Alibaba for digital initiative in China
Photo courtesy of Total (China)

Total (China) collaborates with Alibaba for digital initiative in China

Total (China) Investment has signed a memorandum of understanding (MoU) with the Chinese technology firm founded by Jack Ma to pursue strategic collaboration and leverage their respective resources to drive the digital transformation of the French energy major’s operations in China.

Under the MoU, Total (China) Investment and Alibaba Group (NYSE: BABA; SEHK: 9988) will develop in-depth collaboration based on the Alibaba Business Operating System (ABOS). Total (China) Investment will utilize Alibaba’s leading digital capabilities and technology across e-commerce, online payments, local services, supply chain, big data, and organizational management. The partnership will provide digital infrastructure and support for TOTAL’s service stations, lubricants and special fluids businesses in China, helping the company to enhance the accessibility and flexibility of its product offerings and services, accelerate its branded retail and outlet footprint and drive sustainable growth opportunities.

Total has been present in China for almost 40 years. This collaboration signifies that Total has become the first international energy company to leverage Alibaba ABOS, setting a digital transformation benchmark in the energy industry.

“Digital technology is a critical driver for achieving our excellence objectives across all of Total’s business segments. Total Group’s ambition is to generate as much as USD1.5 billion in value per year for the company by 2025 through digital transformation initiatives,” said Ian Lepetit, president of Total (China) Investment. “China has a world-leading environment for digital innovation and a fertile ground for making it a reality. We hope the partnership will not only improve our business in this country but also create a best practice that we can roll out to Total Group’s overseas business, delivering better products, services and better customer experiences to more than 8 million customers everyday worldwide.”

“As one of the foremost players in the global energy industry, Total is renowned for an excellent lineup of products and services,” said Jet Jing, vice president of Alibaba Group. “It is a privilege to work together and leverage the Alibaba Business Operating System to accelerate Total’s digital transformation, particularly in the areas of product innovations, customer acquisition, order fulfilment and organizational development. We believe the ABOS will support Total to establish a data-technology-driven and customer-centric operating system. Thriving on Alibaba’s integrated platforms and customer touch points, the ABOS will also facilitate Total to serve more customers, serve each customer to the fullest and provide better customer experience at a lower cost and in a more efficient manner.”

The partnership will cover Total (China) Investment’s major business activities, including service stations, lubricants business and car care business, and cooperate with more than 10 business units in the Alibaba Digital Economy. Total will have a cross-platform consumer-facing storefront, which will be launched to the market soon. Customers will be able to enjoy a seamless online-to-offline experience for TOTAL’s products and services on various popular apps, such as Taobao, Tmall, Alipay, Eleme and Amap, any time and anywhere.

Total has long been pursuing digital transformation. As part of an effort to efficiently implement its digital strategy, Total has adjusted its enterprise organizational structure, establishing the new role of chief digital officer and appointing digital officers to its business segments.