Starburst bursts onto China market
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Imagine using a mini-claw machine. What you grab turns out to be a fruit-flavored soft taffy candy. And the flavor of the candy is a random result. This is the latest marketing strategy adopted by Mars Inc to attract younger generation consumers in China where the confectionery market has witnessed a strong decline in years.
This is the first time that Starburst, the box-shaped candy has entered the Chinese mainland market. However, today in China, selling candy to Chinese youngsters is no longer an easy task. According to Euromonitor International, confectionery market value in China has declined from 110 billion yuan ($16.09 billion) in 2014 to 109 billion yuan in 2017 and has slightly recovered to 111 billion yuan this year.
A rising awareness of weight management among young Chinese, a generation growing up with health concerns such as obesity and diabetes has caused the shrinking size of the confectionery market in China, said Zhu Danpeng, an independent food analyst based in Guangzhou.
But young people aged between 15 and 25 are also people who are not afraid of trying "childish" or fun-loving candies, Zhu said, adding that this offers the confectionery market more incentives to be more creative and appealing. "Marketing ideas such as the mini-claw package for candy is interesting for young people in China," said Zhu. "But it is only an isolated case."
Foreign snack and confectionery brands have continuously rolled out innovations on products and marketing campaigns to meet the evolving demands from Chinese consumers, said Zhu.
According to Euromonitor International, Mars Inc ranked No 1 in the market with 14.9 percent, followed by Nestle SA at 6.7 percent and Perfetti Van Melle Group by 4.5 percent.
China is one of the most important markets for Mars. The size of the Chinese market's contribution to Mars' global revenue is expected to triple by 2025, Matthias Berninger, vice-president of public affairs of Mars, was quoted by Chinese media earlier this year. Grant Reid, CEO of Mars, said in an interview that Mars is innovating for the Chinese market by developing products of local flavors that would be appealing to local customers.
Mondelez China this year launched a new series of Stride gum with a fruity flavor.
Nestle, in a transformation from a confectionery and snack producer to a health and nutrition firm, no longer sees its confectionery brand as a darling. It has worked with local technology giants including Xiaomi to collect more diet informations and data to develop health and nutrition recipes for the Chinese market.