During this year’s Expo, Nestle’s chocolate brand baci and ice cream brand Antica, the pair of “Italian dessert CP”, appeared together. How will global food giants like Nestle keep up with the pace in China’s snack market with the rapid change of online Red brands?
“I just took over the ice cream business in August this year and have been studying this industry.” yesterday, Jiang Nini, senior vice president of Nestle’s candy and ice cream business in Greater China, told the snack generation that nestle observed some new changes in Chinese consumers’ consumption of sugar and ice cream, such as paying more attention to health, but also willing to spend more money on better products, These are all opportunities that the company should seize in the future.
Jiang Nini, senior vice president of confectionery and ice cream business in Nestle Greater China
She also said that nestle also hopes to create its own popular models in China, but “it should not only explode for three months, but for 20 years”.
New market opportunities
Jiang Nini introduced that Baqi first unveiled during the Expo in November last year and officially entered the Chinese market in August this year. This chocolate is also one of the representative brands of Nestle’s high-end chocolate.
“As far as candy and ice cream are concerned, we see that high-end is definitely a trend in China, so we introduce more products through the fair.” Jiang Nini also admitted that Chinese consumers have become more health-oriented and pay attention to the control of calorie intake. From the perspective of the whole Zero food category, it is undoubtedly a new challenge, but Nestle also sees opportunities.
She believes that consumers’ health demands for dessert snacks can be met from several aspects, including the use of high-quality raw materials and the provision of guidelines for calorie intake. Consumers may reduce the frequency of desserts and snacks, but they are also willing to buy better products and pay attention to information such as product ingredient list.
“We provide a ‘daily energy intake guide’ on the packaging of ice cream to facilitate consumers’ management of energy intake.” Jiang Nini, for example, Nestle’s ice cream called the 8th power, helps consumers control the calories consumed each time through a small amount of product design. At the same time, in terms of raw materials, Nestle will also introduce more healthy raw materials and products such as pure cocoa butter and dark chocolate.
In addition, Nestle also noticed the new trend of category integration. She introduced that this year, Nestle introduced Qiqiao ice cream from foreign markets. Nestle’s crisp shark also plans to launch ice cream products. In the future, it plans to launch more cross-border new products of Tangqiao ice cream based on the latest market insight.
Create a new pop
Data show that China, as the world’s largest ice cream market, has an annual sales scale of more than 100 billion, and is expected to maintain a compound annual growth rate of about 5% in the next few years. In this context, more and more popular and online brands have emerged in the ice cream industry in recent years.
Coincidentally, cutting-edge chocolate brands are also emerging one after another. What is Nestle’s view on the current market competition pattern?
In this regard, Jiang Nini believes that many local cutting-edge brands do have amazing explosive power. Some are based on their own product positioning or product innovation, while others benefit from strong communication power.
“Nestle has been asked how to create popular models. I think our playing method is different from that of start-ups,” she said.
Jiang Nini further explained that Nestle has many well-known brand assets, including “net red” brands and products. The company needs to fully tap and combine its own advantages when building popular models.
“In Nestle, the hot money we understand should not only be hot for three months, but for 20 years.” for example, she said, for example, Baqi chocolate with a history of more than 100 years, the biggest feature is that each chocolate is opened with a love note of “love proverbs” written in many languages, inadvertently catering to the most popular “blind box culture” among Chinese young people.
Moreover, the chocolate contains 50% dark chocolate and 70% dark chocolate, which also caters to the current Chinese consumers’ preference for dark chocolate.
Explore new models
In fact, for ice cream and other categories, Nestle is also actively exploring new business models in the Chinese market, hoping to find a more suitable way. The snack generation once introduced that in August this year, Nestle authorized to open an Italian dessert shop in Harbin, which integrates different categories such as coffee and chocolate, which is also the company’s new business format of testing water for the first time in China.
Jiang Nini said yesterday that the first antiado ice cream dessert store opened in Shanghai in two years. After opening, the business is quite hot. Although I was once worried about the acceptance of Harbin market, after opening, I found that the business was better than that of Shanghai stores, which made the company feel considerable market space from second and third tier cities.
Nestle’s Italian dessert shop
It is understood that the third Italian dessert shop is expected to open in Changzhou in the near future. Jiang Nini described the second and third tier cities as “a very interesting market. Their consumption power is higher than expected. It may also be because second and third tier cities as a whole live more leisurely and leisurely, and people are also willing to spend money to enjoy life”.
She also said that nestle ice cream is also exploring opportunities for different industry cooperation, such as looking for partners to improve business efficiency. In addition, Nestle ice cream has just established a new team for catering and other channels, hoping to provide ice cream products for restaurants, tea shops, cafes and other channels and find new growth space.