Today Ahold Delhaize announced a strategic partnership with Hanshow Technology to introduce digital applications for its European brands, starting with electronic shelf labels. Wouter Kolk, Chief Executive Officer of Ahold Delhaize Europe and Indonesia, talks about how this partnership fits into his wider ambitions for the region.
What’s the purpose of this collaboration?
“Firstly, through this partnership, we will deploy electronic shelf labels (ESL) in our European brands’ stores. These have a lot of benefits compared to paper price tags, including more accurate pricing and the ability to change prices dynamically – for example when items come close to the expiration date. ESL also enables customers to easily obtain product information and pay conveniently with their mobile phones or near-field communication cards.
“Secondly, we will set up a Joint Innovation Lab with Hanshow to develop new digital solutions that make it faster and easier for customers to shop in our stores such as frictionless payment, in-store navigation and in-store advertising. These are exciting times to be in retail and I’m looking forward to all the new applications that could come out of the Lab.
How does this partnership fit into your ambitions for Ahold Delhaize Europe and Indonesia?
“The partnership with Hanshow is a good example of how we can deploy our scale to help all our brands grow stronger and enhance the customer shopping experience. While our brands are deeply rooted in their own markets, there are a lot of similarities in the challenges they face on important topics like how to fight discounters, and on the drivers of our strategy, such as health or technology.
“So, we are trying to be more efficient, utilize our scale and develop new capabilities. And my team can help find solutions and partners such as Hanshow who can work for all of us. Going forward we will continue to focus on improving our omni-channel positioning, investing in convenience and out of home services and realizing synergies.”
Speaking of technology – what are your ambitions?
“Technology is getting so important for our business that IT should have a seat at the table and be in close connection with the brands.
“We will coordinate our technology efforts across Europe and Indonesia so that we can support our brands in a much more efficient way, but also stimulate them to grow and innovate faster by learning from other brands. At the same time, a strong local IT team remains crucial to support the different circumstances of each business.
What values do you want to drive to achieve your ambitions?
“The values I want to drive are aligned with our Ahold Delhaize values. But courage, in particular, is very important: the courage to try new things. The local brands are all quite different. So, to be successful locally and find the necessary benefits of global scale, you need to have the courage to be curious, open-minded and look at different ways of doing
things. It is very important to be open to implement solutions that other brands have tried and tested, especially in a time when things in our sector are changing so much and so rapidly.
“And, of course, care is important. We need to be customer-centric in all our thinking and all our actions locally – because our customers are who we are ultimately working for.”
What is your own personal mission?
“My biggest mission is to make every brand in Europe and Indonesia successful in their markets. And, of course, we want to be a bridge with the U.S. team and brands, so we can benefit from this global scale. Doing things together is necessary. We should learn from each other and leverage our strengths. And I believe my team can help each brand grow successfully in their own way.
How we are going to do this is something I would like to keep you posted on. Stay tuned!
Tune in on Wouter's interview with BNR newsradio (dutch): https://www.bnr.nl/nieuws/binnenland/10389529/ahold-delhaize-gaat-samenweken-met-chinees-it-bedrijf-hanshow