Core Insights - The core focus of Nestlé's strategy in the Greater China region is to revitalize its business through enhanced collaboration and governance, as stated by CEO Mark Schneider during the earnings call [2] - The company is facing challenges in sustaining growth through its current distribution channel expansion model due to a weak economic environment [2][3] - Nestlé's sales in the Greater China region for the first half of 2025 amounted to 2.47 billion Swiss francs, a decline of 6.4% year-on-year, while the overall group sales decreased by 1.8% to 44.23 billion Swiss francs [2] Management Changes - The appointment of Kais Marzouki as the new CEO for Greater China is a significant step in Nestlé's transformation strategy, having officially taken office on July 1 [5] - Marzouki has extensive experience within Nestlé, having worked for 30 years in various senior management roles, including as CEO in the Philippines, where he successfully led the company back to growth [6] - The management team is undergoing restructuring, with key leadership changes in the pet food and coffee business units, indicating a broader reorganization within the company [7] Business Strategy Adjustments - Nestlé is re-evaluating its product lines and has plans to test the remaining product units within the next 12 months, focusing on reducing underperforming categories and optimizing resource allocation [8][9] - The company has identified six global innovation projects that have generated over 200 million Swiss francs in sales, with a target of achieving at least 100 million Swiss francs in annual sales for each project within three years [9] - A strategy termed "SKU reduction" is being implemented to streamline product offerings and improve efficiency [9] Operational Model Transformation - Nestlé is shifting its operational model from a "push" distribution strategy to a "pull" model, aiming to enhance consumer engagement and drive growth through end-user demand [10][11] - The company emphasizes the importance of activating consumer demand and strengthening its value proposition, which includes product excellence, competitive pricing, market visibility, and impactful brand communication [11] - The transition may lead to short-term performance fluctuations as the company adjusts its inventory and marketing strategies [11]