Future of Nestle E-Commerce
What I Heard (WIH) Series - Nestlevel 2022
Few weeks back Outside In initiated a deep coverage on the Nestle Future-forward here at:
Following the initial post and 2 Operations-focused posts covering their Future Factory and Future Logistics initiatives, this week Outside In continues its coverage of the Nestlevel 2022 event (https://nestlevel.vfairs.com/en/#agenda). This piece focuses on how Nestle is visualizing the future of their E-Commerce and takes a peek into their ‘metaverse’ and Quick Commerce experiments.
Here we go…
Nestle’s E-Commerce Ambition – 25/25/25
To achieve the above ambition, Nestle has put together a Strategic E-Commerce Framework
Context
Technology is enabling a new level of consumer choice in a ‘channel-less’ world. This has enabled 4 distinguishable generations of Retail to co-exist:
Winning in the New Retail Landscape…
Means Pursuing New E-Commerce Routes…
And…
Illustration 1 on New Routes: How Nestle is pursuing the Metaverse
Deriving from the same strategic approach of pursuing new routes for E-Commerce, Nestle has even initiated steps towards the next frontier of Commerce – Metaverse – and leverage the 4 key technologies driving it: AR, VR, AI/ML and Graphic Processing
Nestle defines the Metaverse as: Virtual Environment that supports engagement and experiences comparable to the real world (like shopping, hanging out with friends, etc.), that exist in multiple iterations, and that it is an integral part of the next-gen consumers
Illustration: Nestle NFT Release in Middle East and North Africa –
In April 2022, Nestle release 2 NFTs showcasing Dubai’s “Burj Khalifa” and “Museum of Future” skyline to celebrate the debut of its TRIX Breakfast Cereal
It featured their brand icon ‘The TRIX Rabbit’. The bidding on these two NFTs ran from 18 March to 13 May with a starting bid price of 0.1 ETH, and all of its proceeds were planned to go to the humanitarian organization Emirates Red Crescent
NFTs can help brands, like Nestle, rethink their engagement with consumers and shift their relationship from membership to ownership – consumers become shareholders of the brand, in a way
Illustration 2 on New Routes: Nestle’s Partnership with Quick Commerce Platform Delivery Hero
Delivery Hero is a global leader in food delivery and quick commerce, with a presence in 14 brands (like Glovo, Foodpanda, Hugo) in 74 countries – and Nestle is one of its key partners in the Growth journey
The Age of Q-Commerce beckons…
And Nestle is at the forefront of Quick Commerce and Digital Marketing initiatives with Delivery Hero…
In Conclusion
Digitalization has led to the development of a consumer-centric ecosystem, with less dependence on (nature of) channels – which will necessitate pursuing new routes to market, on an ongoing basis…
Depending on organizational and market maturity, different E-Commerce models will drive different benefits for Nestle…
References & Sources:
1) My Notes from the Nestle Nestlevel 2022 Event: https://nestlevel.vfairs.com/en/#agenda
2) Nestle NFT Example: https://www.cryptotimes.io/nestle-drops-its-first-nfts-in-middle-east-north-africa/