Nestle Markets Coffee in China Through Chinese Tourists in Japan

What’s the best way to market a new product or brand in China? There are countless answers to this multi-billion-dollar question, and it often boils down to who you are looking to target with your campaign. Needless to say, a shotgun approach to promotion in a market of some 1.3 billion consumers can both be costly and inefficient. Nestle, the world’s largest food and beverage company, hopes that Chinese consumers outside of China might just be the best target for its new marketing campaign.

Specifically, Nestle aims to compete with Starbucks in China through its Nescafe brand of instant coffee, coffee pods, coffee machines, and other coffee-related products. China, only recently a coffee-drinking nation, still lags far behind most markets in the world in coffee consumption—but the market is rapidly expanding. According to data quoted by the Nikkei Asian Review in an article on Nestle’s marketing efforts, annual coffee consumption in China stands at around 10 cups per year, with 20 cups per year in urban areas. This is far behind the 200-400 cups per year consumed in developed markets.

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