Nestle launches its own ecommerce website

It has launched Direct to Consumer (D2C) website to sell its own products.

  • For now the platform is only servicing the Delhi-NCR customers. Gradually it will be ramped up into other cities.
  • The platform is targeting to value add by providing curated product bundles, personalised gifting, subscriptions, discounts etc.
  • Consumer engagement is targeted through varied initiatives, e.g., gourmet recipes, free nutrition counselling

Is it a significant initiative

Online sales are increasing across the categories. Companies therefore trying to cut the middleman and increase margins is the current trend.

Nestle‘s initiative is also in the similar direction.

As per the Company, ecommerce channel contributed 7.2% to it’s total sales during June 2022 quarter. Given that this is expected to become atleast 20% in the next 3-4 years, Nestle launching it’s own D2C platform seems rational.

However, what effort and patience it puts behind this initiative remains to be seen.

Selling online needs a very different mindset and execution capabilities vis-a-vis selling through offline retail network.

Many a times, large corporates jump into newer areas because of the ongoing fad and when results don’t come through quickly, they lose the interest and focus.

Nestle’s track record though, of being very selective and focused makes me hopeful.

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