PepsiCo enters China dairy industry via JD.com
PepsiCo announced during a press conference in Beijing on August 14 that it has signed an agreement with leading online direct sales company JD.com Inc (JD) to sell Quaker High Fiber Oats Dairy Drink, its first premium dairy product in China, on JD’s e-commerce platform.
It is PepsiCo’s first launch of a new product exclusively through e-commerce outside of the US, and it showcases both the significance of PepsiCo’s entrance into China’s popular dairy beverage market and the strength of JD’s e-commerce platform. Through this strategic partnership, both parties will provide Chinese consumers with the latest healthy product choices as well as convenient and fast-paced shopping experiences.
PepsiCo is introducing this product to take advantage of China’s fast-growing, value-added dairy market and to satisfy consumers’ demand for a healthy and fast-paced lifestyle. It is made from the finest Australian Quaker oats and high quality milk from New Zealand.
The Quaker High Fiber Oats Dairy Drink is produced through its patented “Solu-Oats” unique technology, completely blending the grinded oats with milk. The unique drink keeps not only the nutritional ingredients of natural whole grains, but also boasts a very smooth and silky texture with plentiful dietary fiber.
PepsiCo’s launch of its first dairy drink on JD is a combination of mutual strengths of both companies. JD has over 100 million annual active users, a mature e-commerce operating platform and a self-owned logistics system covering all of China. The consumer goods sector, in which foods reside, has always been the strategic priority of JD. Launching its brand new products through JD, PepsiCo can quickly promote and popularize its brands and boost its product sales by leveraging JD’s platform and premium services.
PepsiCo has rich experience in the oats-based dairy sector around the world, with proprietary patents and technologies in grain research and development, as well as branded products that are popular among consumers, including Quaker Oats, with over 100 years of history, quality and a fine reputation.
The new Quaker High Fiber Oats Dairy Drink will be sold exclusively on JD for two months. The characteristics of the e-commerce platform, coupled with the marketing of digital media, can directly reach consumers in first-tier, second-tire and third-tier cities and even lower, breaking the geographic divisions challenging traditional sales. By marketing a new product exclusively on an e-commerce platform, PepsiCo hopes to understand consumers’ varying needs faster and more deeply.
Online and offline interactions will also help PepsiCo conduct product innovation in a faster and better way so as to provide more products to satisfy consumers’ changing tastes.
E-commerce has become an important engine in driving domestic consumption, boosting the upgrade of traditional sectors and developing modern services across China. Survey results indicate that Chinese online consumers are ranked among the most advanced in the world. China has over 500 million social networking sites users who are pioneering the world’s e-commerce development.
As a global leader within the food and beverage industry, PepsiCo is seizing the opportunity in choosing China as the first international market in the world to launch and promote a premium new product exclusively through e-commerce. Such a campaign demonstrates PepsiCo’s long-term commitment to the Chinese market and its confidence in the development of e-commence in China.
Prior to this launch, PepsiCo had invested incrementally in e-commerce business by actively cooperating with major e-commerce platforms in various areas.
“Adhering to the principle of our ‘customer-first’ mission, JD is committed to providing products with high cost-performance and superior shopping experiences, hence achieving a win-win with our partners,” said Shen Haoyu, CEO of JD Mall, “We are very happy to be the platform to launch and sell PepsiCo’s first dairy drink product in China.”
Mike Spanos, CEO and President of PepsiCo Greater China, also has a confidence in this partnership.
“With the continued development of the Chinese economy, consumers have ever-more demand for healthy and nutritious dairy drink products,” he said. “Entering China’s dairy beverage market is a crucial piece of our growth strategy, as it opens new opportunities for PepsiCo in China and will allow more Chinese consumers to enjoy the latest and delicious PepsiCo products.”