SUMMARY
MyNestle will offer curated product bundles, customised gifting, discounts and more
Nestle’s D2C platform will be initially launched in Delhi-NCR and later expanded to other parts of the country
With this initiative, Nestle India has joined FMCG majors like ITC and Hindustan Unilever in the country’s fast-expanding D2C space
Food and beverage (F&B) giant Nestle has forayed into the direct-to-consumer (D2C) space in India with the launch of D2C platform ‘MyNestle’.
In a statement, Nestle India CMD Suresh Narayanan said that the D2C platform will offer curated product bundles, customised gifting, subscriptions, and discounts, among others, to consumers.
Nestle India’s D2C platform will allow consumers to try gourmet recipes and also get free counselling from nutrition experts. Initially, it will be launched in Delhi-NCR and later expand to other parts of India.
With this, the company, which owns brands like Maggi, KitKat, Nescafe, among others, has joined FMCG majors like ITC and Hindustan Unilever who are already present in the country’s fast-expanding D2C space.
Nestle India also released its financial results for the quarter ended September 30, 2022 on Wednesday. Its total sales rose 18.2% quarter-on-quarter (QoQ) to INR INR 4,567 Cr, while its net profit grew 20.3% QoQ to INR 668 Cr.
The company said that the ecommerce channel, including quick commerce and click and mortar, contributed 7.2% to its total sales during the quarter.
Rising Interest in D2C Space
According to an Inc42 report, the Indian D2C market is set to become a $300 Bn space by 2030. In the first six months of 2022, D2C startups cumulatively raised $1.3 Bn in funding, the highest among all sub-segments of the ecommerce sector.
Due to its rising popularity, a lot of established corporates have also entered the D2C space. On Tuesday, FMCG giant ITC said that it has increased its stake in baby and mothercare D2C startup Mother Sparsh to 22% from 16% earlier.
Earlier this week, D2C eyewear brand ClearDekho raised a funding of $5 Mn.
The D2C space is crowded by startups in the country. Over 50K digital-first startups are operating in the country’s D2C space, as per the report.
Lenskart, Mamaearth and Licious are some of the unicorns operating in the D2C space.
In recent times, Thrasio-style startups such as Mensa Brands, UpScalio and Global Bees have also entered the D2C market, acquiring digital-first brands and scaling their portfolios.
Meanwhile, emerging D2C startups are also adopting hybrid business models owing to the rising operational costs.
