CHINA: Nestlé Expands Tie-up With Alibaba

Nestlé has signed a new deal that will expand its existing relationship with Alibaba, aimed at boosting its online sales in the country.

The two sides have kicked off a six-month digital commerce and marketing campaign that aims to leverage Alibaba’s various platforms.  The campaign will cover 154 products under 30 brands, of which 67 products will be introduced to Chinese customers for the first time.

Nestlé noted: “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”.

The move comes even as Nestlé’s growth in the market has slowed in recent years, with the group admitting it had not reacted fast enough to changing consumer trends. The group had initiated its partnership with Alibaba in 2015, with the signing of a strategic cooperation deal.

NAM Implications:
  • Just steps behind increased moves with Amazon in other countries?
  • Essential that branded suppliers optimise all routes to consumer, including discounters…