Recently, Nestle, the world’s largest food company, held a video investor conference. This time, the theme is closely related to the business under the epidemic – digital technology. Nestle’s Global CEO, CFO and other executives were all present, which shows the importance they attach to this meeting.
Xiaoshidai noticed that the Chinese market was also mentioned in this meeting. Next, let’s take a look at the latest information disclosed to investors by Nestle’s highest level in the world.
“No matter how you define innovation, it will determine our future success or failure.” at the meeting, Rashid Qureshi, chairman and CEO of Nestle Greater China, introduced through a video clip that China is undoubtedly the most innovative food and beverage market in the world, and brands emerge one after another, which is caused by the digitization of the business environment Driven by the open data ecology.
He said that Nestle is also using digital technology to accelerate the innovation process in China, hoping to speed up the transformation of achievements or improve the concept based on data insight. “Today, we can use innovative big data tools to screen out some important trends and capture innovation opportunities with real-time social data.”
Rochester said that in China, Nestle can quickly test relevant concepts by working with e-commerce partners, and some “innovation density” has tripled in the past three years. For example, together with tmall, Nestle verified the trend of adding fruit flavor to instant coffee, and even identified the consumer group of this product, which took only two weeks.
It is reported that after the launch of relevant products, it has penetrated 3 million families, of which 20% are new consumers in this category. Within six weeks, the market share of Nestle’s “1 + 2” coffee has also increased by 50 basis points. He said that inspired by this, Nestle fixed the coffee products that were originally “testing the water” and also introduced new seasonal flavors.
“This example shows how we use data and technology to innovate faster and increase the success rate,” he said. Nestle is extending relevant practices to more categories in China.
According to Bernard Meunier, head of Nestle’s strategic business unit, who attended the meeting together, Nestle hopes to become a leader in all digital fields in the next few years. To this end, the company should further enrich the e-commerce product line and increase digital marketing investment. At the same time, Nestle should further grasp valuable consumer data and create a “more influential and personalized” experience for them.
According to him, Nestle’s latest plan is to increase the proportion of online sales revenue in the overall revenue from the current 13% to 25% by 2025, which means that its goal is to double. As for the proportion of online marketing investment, it will also increase from 47% to 75%. The goal is to obtain a higher return on investment in digital channels.
According to the financial report, last year, Nestle’s sales revenue was equivalent to about US $90.71 billion, of which the revenue from e-commerce accounted for about 12.8%.
“Considering the scale of Nestle and the complexity of its product line, we will accelerate from two aspects.” Bernard Meunier said that one is to make the core products more brilliant online, and the other is to let those digital native brands continue to attack the city. “In the words that our CEO reminds us from time to time, this is’ the good play is still ahead ‘.”
Aude Gandon, global chief marketing officer of Nestle, also introduced how to achieve business growth through digitization and its three priorities.
Aude Gandon said that the first is to contact consumers directly on a large scale. Nestle will use its family penetration as a competitive advantage to further create value for the product portfolio through the data obtained. Second, unbounded channel commerce makes buying easier and consumers don’t even have to think about it. For consumers, they don’t care about the channel. They are just thinking about which brand can meet their needs. Therefore, for Nestle, this means that it should appear at the right “demand moment”. Third, round the clock online analysis, identify new opportunities through the use and analysis of data, and take the return on investment seriously.