FMCG and packaged food giant Nestlé India has joined the direct-to-consumer (D2C) bandwagon with the launch of its e-commerce platform MyNestlé, where consumers can buy all Nestlé products. The company announced the product launch along with quarterly earnings for the third quarter that ended in September. Nestlé India’s fiscal year is January to December.
The company plans to offer curated product bundles, personalised gifts, subscriptions and discounts on its platform. Consumers can also try gourmet recipes on the platform and get free nutrition counselling. Initially, MyNestlé will launch in Delhi NCR and expand to other parts of the country.
With Mamaearth, Plum Goodness and Licious has reached a considerable scale by reaching consumers directly through e-commerce rather than through traditional means such as distributors and retailers. In addition, these companies have launched products developed specifically for their D2C channels and even their online brands alongside their D2C platforms. Companies like Dabur, Marico, Emami and Tata Consumer Products are launching dedicated products for their D2C platforms and marketplaces as they compete with digital-first brands. For example, Dabur India targets Rs 100 crore in sales from its digitally native brands in FY23.
The launch of the D2C platform is expected to give Nestlé India better sales from the e-commerce channel, which currently accounts for around 7% of its domestic sales.
Nestlé India reported a net profit of Rs 668 crore in the September quarter (Q3), up 8.3% year-on-year compared to the Rs 617 crore reported in the same period last year.
The company’s total sales rose 18.3% to Rs 4,591 crore in the third quarter, compared to Rs 3,882 crore last year. Subsequently, the company’s net profit jumped nearly 30% from the Rs 515 crore reported in the second quarter, while revenue in the second quarter rose 14% to Rs 4,036 crore.
Nestlé India has been battling inflation across multiple commodities for more than a year, weighing on its growth. However, the company has witnessed softening prices for key raw materials such as cooking oil and packaging materials.
“However, the cost of fresh milk, fuel, grain and green coffee is expected to remain firm as demand and volatility continue to increase,” the company added.