Nestle brand commerce strategy with Alibaba

The Swiss company yesterday kicked off the six-month campaign by launching 67 products on Tmall.com, Alibaba’s leading B2C online-shopping site, that have never been available in China before, including 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. The three-day Super Brand Day promotion features discounts on a total of 154 products from 30 Nestlé brands.

Other marketing activities Nestlé has planned in the months ahead will showcase its brands to Chinese customers countrywide via what Alibaba calls its “ecommerce media ecosystem,” a growing digital marketing network encompassing social, mobile and web-based media outlets.

Nestle Brand Commerce Strategy With Alibaba is Aggressive

For example, Nestlé marketing will be featured prominently on popular video programs on Alibaba Group’s Youku Tudou video streaming site, one of China’s top online video platforms. The campaign includes a Nestlé video that can be viewed on virtual reality headsets, marking the first time Youku Tudou has worked with a brand partner on a virtual reality campaign in China. Starting in August, Nestlé also plans to feature its products on Alibaba’s Tmall Country Pavilions.

Alibaba Group CEO Daniel Zhang said his company is combining digital media with data on consumer behavior to enable multinationals like Nestlé to undergo a “digital transformation,” building their brands and managing customer relationships in innovative new ways. “We will continue to expand on our partnerships and infrastructure to deliver access to the widest selection of the best products from around the world to consumers,” Zhang said in a statement, “whether they live in Beijing or a rural village in the farthest edges of the country.”

Nestlé is basing its upcoming China campaign on its 150thanniversary. The company launched its first Tmall virtual store in 2008 and has 14 flagship outlets on the platform.

Faced with disappointing growth in China recently, Nestlé is focusing on ecommerce to help jumpstart sales, according to aBloomberg story. Nestlé’s ecommerce business is growing at triple-digit rates in China and is more profitable than sales in physical stores, according to Bloomberg.

Read the full story on the Alizila blog, written by Jim Erickson.

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