Chocolate and confectioneries are no longer a European and American consumption goods. The chocolate consumption, whatever its state, is booming in several countries such as India, Malaysia, Russia or China. Therefore, the chocolate industry is looking east while adapting its marketing strategy to these new markets. Indeed, increase in per capita income has fueled the demand for chocolates in emerging economies. Chocolate and confectioneries are no longer perceived as luxury goods ; it is affordable for the middle class that is beginning to buy it as a mass consumption good.
To quickly answer to the growing demand in countries where the penetration rate of chocolate is low despite a high number of inhabitants, some brands tend to focus on the implementation of their core products. Brands do not have the European customer constraints such as a high quality, the healthy and environmental-friendly aspects or low sugar rates : people do not have specific expectations and requirements about these criteria. The products sold are mainly the classical ones for us but also some products that fit with the needs of the culture of the target country. Thus, the adaptation is both about the product itself and the advertising that must create a brand awareness. Playing on the entertainment is on of the main approaches Kit Kat decided to pick for the Indian market that is not interesting in premium quality yet.
In China, M&M's created spicy confectioneries to adapt a culture where spicy food is king. This is a glocalisation strategy.
However, some emerging markets are already premium oriented. This is the case of some Middle East markets such as Saudi Arabia where major companies are promoting their high quality range of products to raise awareness on them. Ferrero wowed consumers with a replica of Burj Khalifa in Dubai Airport made of Ferrero Rocher.
Cited sources :
- The Economics of Chocolate, Oxford University Press, 2016
- Global Industrial Chocolate Industry Driven by Increasing Demand for Organic and Sugar-free Chocolates: Technavio, Business Wire, January 5, 2017
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