When China opened its markets in the 1980s, Chinese were, as Lawrence Allen, a former CEO of Nestle and Hershey, puts it, “chocolate virgins”. Most Mainland Chinese had never even tasted a piece of chocolate. In the 1990s, companies such as Mars, Ferrero, Nestle, Hershey and Cadbury entered the country, and the market started to boom.
Conquering the market
One important step to turn chocolate into an everyday Chinese product was to lower prices and adapt the marketing strategy. Prices could be reduced by opening new production plants in China, Mars and Hershey were among the first companies realising this. A company with a successful marketing strategy was Dove. Dove managed to teach customers how quality chocolate should taste like. Due to their slogan “outright enjoyment of smoothness”, many Chinese are now convinced that chocolate should have a silky taste. Today, Dove is one of the most popular chocolate brands in China.
Rather used as a gift than an everyday snack
Chocolate bought in China is mostly used as gifts or for ceremonies, but seldom as snacks. Buying chocolate to show love for their girlfriends is very popular with young Chinese men, and last year, five of the top 10 items sold on Alibaba during Valentine’s Day were made of chocolate.
Great potential for the future
Chocolate sales in China have more than doubled during the last decade; the market is currently worth RMB 35 billion and expected to grow to RMB 40 billion next year. But the consumption in China is still very low compared to developed countries; currently Chinese consume on average 70 grams per year, Europeans in comparison consume 7 kg, and Swiss people even 10,5 kg.
Further reading:
In-depth article about the subject / China Daily
