Nestlé hops online with the launch of D2C digital storefront
The development comes at a time when having a digital storefront is a must for consumer companies. The Swiss food giant's domestic competitors, including Tata Consumer and ITC, developed their digital storefronts amid the pandemic.
India, the maker of Maggie and KitKat, launched a digital storefront, MyNestlé, to expand its online presence. The platform will initially be operational in Delhi-NCR and will expand to other cities, the company said on October 19.
"Created specifically keeping the consumer needs in mind, I am confident that MyNestlé will delight the consumer in every way. With curated product bundles, personalized gifting, subscriptions, discounts, and much more," said Suresh Narayanan, chairman and managing director, Nestlé India, in a release.
The platform will also provide free nutrition counselling and gourmet recipes for consumers to try.
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The pandemic-led lockdowns accelerated digital time spent by people across India, hopping on the internet for shopping, education, and entertainment. Having an online presence also became important for consumer giants as many new-age companies including , , , and , among others, had accelerated growth due to their direct-to-consumer approach.
Fast-moving consumer goods (FMCG) majors expanded their digital presence by selling on ecommerce marketplaces and D2C channels, among other things. Nestle, the Swiss food giant, is a little late to the party. Its domestic competitors, including Marico, Tata Consumer, and ITC, accelerated their online stores through the pandemic and scooped up consumers.
But MyNestlé will help the package goods major to increase ecommerce sales, which currently stands at 7.2% of all quarterly sales.
Nestlé has been dealing with inflationary pressures for the last one year. But the company pleasantly surprised analysts by reporting positive results for the September-ended quarter. Nestlé's revenue grew 18%, compared to the same period last year, to reach Rs 4,591 crore and generated profit (after tax) of Rs 668 crores, a 8% year-on-year jump.
Edited by Kanishk Singh