China: Nestle agrees partnership with Alibaba

The Chinese arm of FMCG multinational Nestle has signed an e-commerce partnership with web portal Alibaba that will see Nestle products made available online for a Chinese audience, according to a report in New Food Magazine.

The purpose of the partnership is to expand Nestle’s online sales through the introduction of new products to internet consumers, along with the strengthening of the company’s brand image in China.

The project follows Nestle's other recent incursions into e-commerce, including the Nespresso online boutique and its recent global launch of chocolate brand Cailler on Amazon. Now the company will launch Nido milk powder, Damak chocolate and Nescafe Dolce Gusto BMW MINI coffee machines on Alibaba’s Tmall.com, China’s largest shopping website.

Commenting on the move, Sebastien Szczepaniak, Nestle’s vice president of group sales and ebusiness, said: “Offline purchases are increasingly influenced by what we see online, so brand building has gone beyond having good television advertising and nice packaging. Our ability to build brands on any touchpoint, be it digital or analogue, is vital".

Nestle’s move follows other recent partnerships established between Chinese ecommerce retailers and global FMCG firms, including Unilever's tie up with JD.com and the collaboration between Alibaba and United Biscuits .

Source: New Food Magazine