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Nestlé strengthens partnership with T-mall

Nestlé strikes partnership with China's e-commerce giant Alibaba to boost its online sales and further penetrate the lucrative Chinese market.

The world's largest food retailer Sunday began its six-month marketing initiative by launching 67 products on Alibaba’sT-mall.com that have never been available in China before. Newly introduced products include Nido milk powder from the Netherlands, Nestlé Damak chocolate from Turkey, Nescafé Gold from France, and Nestlé and Wyeth infant nutrition products from Switzerland, the U.K. and Germany.

"Our partnership with Alibaba is all about the consumer. What is so exciting about China as a market is not only its size or population, but that Chinese consumers are a step ahead of consumers in other markets in the digital way they consume," Wan Ling Martello, executive vice president with Nestlé overseeing the Asian, Oceanian and African market.

Further entrenchment
Nestlé like Mondelez previously launched a virtual store on T-mall. And Nestlé actually has 14 flagship outlets on the platform. However, its current campaign is part of an e-commerce fair commemorating the company’s 150th anniversary and will take advantage of more of Alibaba’s e-commerce media ecosystem; including virtual reality videos on Alibaba Group’s Youku Tudou video streaming site, and featured products on Alibaba’s T-mall Country Pavilions come August.

Tapping China’s digital consumers
Faced with disappointing growth in China recently, Nestlé is focusing on e-commerce to help jumpstart sales, according to a Bloomberg story. Nestlé wants to take advantage of the digital surge that will see China’s e-commerce sales surpass the U.S. and Europe combined by 2018, said Wan Ling Martello.

The volume of online purchases surged by more than 12 times from January 2011 to April 2016 in China, while per capita consumption grew by 27% per cent, according to a joint report released by Alibaba's financial services platform Ant Financial and a private economics research institute.

Nestlé is betting on China’s tech savvy consumers to drive next 150 years of company growth. “China's consumption pattern and manner have evolved fast and consumption is becoming increasingly digital with more young consumers choosing to shop online,” Zhang Yong, Alibaba CEO said.

Half of Nestlé's 2015 sales in China were online.

Tags: Alibaba, Marketing

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