Omni-channel presence: Nestlé China taps on Alibaba Ling Shou Tong model to reach more mum-and-pop stores

By Tingmin Koe contact

- Last updated on GMT

Nestlé has launched Nescafé coffee that comes in three fruit flavours - peach, pineapple, and green apple to target the young consumers. ©Nestlé China
Nestlé has launched Nescafé coffee that comes in three fruit flavours - peach, pineapple, and green apple to target the young consumers. ©Nestlé China

Related tags: Nescafe, Nestlé, Alibaba, Ling Shou Tong (LST)

Nestlé China is building its presence in the traditional mum-and-pop stores by cooperating with Alibaba’s Ling Shou Tong (LST).

LST helps connect FMCG brands with traditional mum-and-pop stores, which were previously connected via multiple layers of sub-distributors. 

Nestlé recently organised a Super Brand Day with LST, where all products from its subsidiaries, including Yinlu and Totole are available for sale on LST. New products from these brands were also launched on the platform.  

Facing both opportunities and challenges from China’s new retail scene, Nestlé China said participating in LST Super Brand Day not only helped to strengthen the store owners’ habit of buying its products, but also fosters brand loyalty.

Whereas for store-owners, the LST app providex analytics on the products that are in greatest demand. Storeowners can then place their orders online without going through the distributors.

This year, Nestlé will also focus on establishing a Digital Store Operating Center (DSOC) with LST.

By referring to sales data recorded in LST participating stores, the initiative aims to drive product customisation and targeted marketing plans for the stores, in turn increasing the efficiency of product distribution.

Fruity Nescafé

One of the new products highlights was the launch of the fruit-flavoured Nescafé.

Coming in three flavours – peach, pineapple, and green apple, this is the first time that Nestlé is launching fruit-flavoured coffee.

The product was also launched on Tmall’s coffee category day. According to Nestlé’s Tmall flagship store, the product received overwhelming responses, selling out in one day.

The firm also experimented with the preparation methods. For example, consumers are able to brew the green apple flavoured coffee with ice water or sparkling water.

"China is a coffee consumption market with great potential. Faced with the rapid development of the Chinese market, brands must constantly change and innovate in order to cater for more consumer preferences.

“Fruity Ice Coffee is an innovative coffee product specially designed and independently developed by Nestlé for young consumers in China. Young consumers like fresh taste and consumption experience, so this specially blended coffee series is aimed at matching coffee with the most fashionable taste elements at present to create rich and wonderful multi-taste experience,"​ said Altug Guven, senior vice president of Nestlé's coffee business in Greater China.

He added that Nescafé business in China had been developing a “very fast”​ pace.

Moving forward, there are plans to introduce other types of coffee that leverages on local Chinese cultural flavours during winter this year.

In fact, the firm said in April that it aimed to launch 170 new products in China alone​ this year.

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