12 May 2020
Posted in Consumer
Nestle’s nesQino to give personalized beverage experience to consumers in China amid COVID-19 outbreak, says GlobalData
Nestle has recently launched a smart ‘Q-cup’ machine nesQino in China. The product allows consumers to create up to 21 superfood drinks at home by mixing ingredient sachets with water. The move is in line with the current growing trend of making healthy superfood drinks at home due to COVID-19 outbreak, says GlobalData, a leading data and analytics company.
According to GlobalData COVID-19 week 5 (April 21-26) survey, almost 89% of the Chinese consumers are influenced by how the product will impact their health and wellbeing. Nearly 39% of the consumers are buying ‘Juices & Squashes’ products more than before COVID-19, whereas about 22% of the consumers are buying other soft drinks. This implies that health-conscious shoppers are turning to more naturally formulated, low-sugar ‘good-for-you’ beverages to improve their overall well-being.
Matthew Perry, Consumer Insights Analyst at GlobalData, says: “Nestle’s ‘superfood’ drink in China is a prime example of how brands can combine technology and use ‘beneficial’ ingredients to enhance the health appeal of a product and bring in personalization factor. Amid COVID-19, we expect a surge in healthy living and balanced lifestyle, reshaping consumer decision-making and buying behaviour across sectors over the next year.
“Companies have taken note of the evolving consumer needs and hence continue to engage with consumers through positive, supportive and informative messages about the proactive actions they are making in products’ innovation, marketing claims or sustainability.”
NesQino has been marketed as a smart and simple solution to allow consumers to personalize healthy superfood drinks. It claims to rely on flash-freezing and drying techniques, combined with patented powder technologies along with the ingredients that are naturally preserved with no additives, preservatives, artificial colors or flavors. Additionally, the product addresses sustainable packaging solutions and aims to regain consumer trust in an information-rich age through nesQino smartphone mini program (app) allowing consumers to personalize drink temperature, explore recipe combinations, access nutritional information, and interact and share recipes with friends.
Perry concludes: “While most of the fast moving consumer goods (FMCG) companies are making environmental efforts and realigning their portfolios with health-aligned alternatives, the greatest rewards will be reaped by authentic and agile brands that are able to rethink on their consumers’ experiences and connect with them accordingly. Nestle was quick to make the strategic move in 2020, a year filled with uncertainties. However, it will interesting to keep a close watch on how Nestle’s competitors plan to reinvent themselves and respond to the company’s move.”