Nestlé is achieving sales success in China thanks to its partnership with that country’s largest retailer, Jingdong. JD.com carefully analyzes consumer behavior and also provides expert advice on how products should be designed. This has resulted in excellent sales for Nestlé on the JD.com app.
Nestlé Purina FancyFeast was already a top-selling product on JD.com. Jingdong analyzed what the habits were of FancyFeast consumers. What they discovered was that in the variety packs consumers picked certain flavors over other ones. A new variety pack with eight cans was developed that featured the four most popular wet cat food flavors.
JD identified people who would be receptive to purchasing this variety pack. 10,000 two-can trial boxes were created and sent out to these people along with one of their existing orders. The result was that twice as many packages of FancyFeast were sold compared to the same period last year.
Further research by Jingdong revealed more information about Nestlé customers in China. They were, as a group, highly educated, spent a lot of money, and are usually a member of JD Plus, JD.com’s loyalty program. It also spotted a trend of pet owners wanting to buy higher-quality food and other products for their pets. An example of this was that searches on JD.com for “smart pet water fountain” had grown intensely.
Jingdong’s takeaway from this research was that Nestlé customers are fine with spending more money on their pets, including buying premium food. As a result, Nestlé replaced their “tuna” flavor” with “tuna flavor with chicken and bonito flakes”.
JD also helped Nestlé redesign other products such as their wafer bars so they would appeal more to Chinese consumers. JD.com’s customers buy these in bulk. Jingdong’s research showed that they are bought this way because people take them on trips and family outings.
The package Nestlé was selling in China didn’t fit well for these occasions. Chinese consumers wanted each bar to be smaller and have more varieties of flavor. Nestlé is now selling a larger pack with mini-sized bars that come in a bigger selection of flavors.