Perceive and Expand the Market through Agility and Innovation | 2019 Press Releases | China | Mondelez International, Inc.

Perceive and Expand the Market through Agility and Innovation

  1. The C2B Innovation Factory of Mondelēz--Tmall Innovation Center unveiled in Suzhou
  2. First co-created product Mini Oreo Assorted Nuts Snack launched

Suzhou, September 17, 2019 – The snack market leader Mondelēz China and the Tmall Innovation Center (TMIC) held an unveiling ceremony for their C2B Innovation Factory at the Mondelēz Global R&D Center in Suzhou. This move indicated that Mondelēz and Alibaba as long-term strategic partners will deepen their cooperation in more areas in addition to marketing and sales, and the diversified product development model will provide more new snacks for consumers in the future. All the R&D staff at Mondelēz Suzhou Factory and the Alibaba team all witnessed this moment, and celebrated the launch of their first co-developed product – Mini Oreo Assorted Nuts Snack at the Tmall Nut Festival. MDLZ employees from Suzhou RDQI Center and the TMIC team from Alibaba together unveiled the "C2B Innovation Factory of Mondelēz-Tmall Innovation Center".

This unveiling ceremony marked that Mondelēz Suzhou Global R&D Center was officially launched as the R&D facility for the cooperation program between Mondelēz International and TMIC. "Mondelēz International is dedicated to allowing consumers to really enjoy great snacks, while TMIC can provide accurate consumer behavior data leveraging the powerful Tmall e-commerce platform,” Mr. Joost Vlaanderen, President of Mondelēz Greater China stressed the stakes and expectations the Company has placed on the cooperation, “we believe that our cooperation is a trial-run of the incubation of new products in agile supply chains and also a reflection of Mondelēz China's effort to implement its flexible and innovative consumer-centric strategy for accelerated growth. We are thrilled to see the highly efficient Chinese team to complete the launch of Mini Oreo Assorted Nuts Snack in just a few months. We have full confidence in our cooperation in the future."

Just as Ms. Xiu Xun, General Manager of Tmall Brand Marketing Center said that, “Tmall as a platform has 700 million monthly active users. Through consumer insights generated from big data as well as small sample analysis, TMIC can help brands to increase the efficiency and success rate of product development. This will also help brands to capture market trends with higher agility and competitiveness.

This March, Mondelēz began to communicate with the TMIC about the possibilities for cooperation. Both sides constantly focus on the consumer-centric philosophy when discussing the related topics ranging from the collaboration model, the connection between market data and trends, to the design of innovative products. It is worth noting that Mondelēz specially set up an "agile innovation team" to create snacks for the future. This is one of the markets around the world where Mondelēz first established an innovation team. The team covers multiple departments in the company, including marketing, R&D, purchasing, quality control (QC), sales and legal affairs, to ensure the smooth incubation of new products. All functional departments have corresponding members to ensure the efficient operation of work procedures. Meanwhile, Mondelēz also commissions certified agent factories for the production of new products. This has greatly improved the production capacity and response speed of the supply chain, laying a solid foundation for the brand to make cross-industry innovation.

It is learned that Mini Oreo Assorted Nuts Snack, which was jointly developed by the two companies, will be launched first at the Tmall platform. Relevant data will be tracked to analyze its market performance. If the expected results are achieved, the new product will be soon promoted across the country through multiple channels. The product will be presented to consumers in the form of OREO cookies in combination with nuts/dried fruits. The unique design was created by the TMIC. After analyzing the characteristics of the consumer group who like to buy cookies, TMIC found that they also like to eat nuts/dried fruits in daily life. Once the concept of cookies plus nuts are established, TMIC worked with consumers to complete the detailed design of the product, including the type of nuts/dried fruits to be used and the quantity for each package. Finally, the product design will be placed in the simulation module to evaluate its future market potential and precisely locate the target customers.

Since Mondelēz implemented the new strategy at the end of last year, the China business unit has delivered impressive performance. In the first half of 2019, it achieved double-digit growth and attracted extensive attention for its performance in marketing and product innovation. Joost Vlaanderen, President of Mondelēz Greater China remarked that Chinese staff had demonstrated their passion for innovation and strong execution. To be more agile and never satisfied, and more Chinese to cater to the needs of local consumers – The strategy he has formulated for the China market won recognition and support from the staff and partners. As the benchmark partner for TMIC in food, Mondelēz has been widely anticipated for each of its move.