The Paradoxical Selflessness of China’s Chocolate Market

The experience of eating and purchasing chocolate in our western society can often be defined by our individual love for its taste and its self-indulgent nature. It would make sense that in trying to extend this experience to the Chinese marketplace, the “Big Five” producers (Ferrero, Cadbury, Hershey, Nestle, and Mars) should try to replicate many of these same factors. Interestingly, China’s adoption of chocolate as something not primarily for oneself was rather backwards when compared with our traditional western practices, so much so that some may even consider it paradoxical. Yet it is this paradox that reveals that power of a specific culture to shape the experience of chocolate into one that is suitable for its audience.

In the taste arena, chocolate was very foreign to the Chinese palate. As described by Lawrence Allen in his work China and Chocolate: East Meets West, China had gone through a period of austerity from the 1950’s to the 1970’s. During this time, “people became accustomed to a limited range foods that were predominantly indigenous…variety was not only limited, it was also highly seasonal” (Allen 27). As such, existing populations found “the taste, texture, and particularly the sweetness of chocolate too foreign and extreme” (27). Frank McCafferty, a senior manager for chocolate product development in Asia, describes the dichotomy between westerners’ and China’s tastes well: “In the U.S. it has to be sweet, sweet, sweet, more sugar is better — not in China” (Doland). Thus, rather than embracing the rational attraction of its sweet taste, the Big Five had to take a much different strategy and promote chocolate as a “foreign and exotic curiosity” (Allen 23). The means to do this would be through the Chinese culture of gift giving.

Trends revealed that Chinese consumers were not largely buying chocolate for themselves. Not only does this support the idea that the fundamental chocolate taste was not playing a major factor in consumption, but also that chocolate for self-consumption was a rather underdeveloped market, again defying much of our traditional views on the self-indulgent nature of chocolate. For other established chocolate markets, the gift-giving purpose of chocolate only accounted for less than 10 percent of total sales (Allen 27). This was not the case in China. With over half of chocolate sales attributed to gifting, Allen puts it well when he writes, “Chocolate gift sales do not require the purchaser to have a taste for chocolate – only that he or she be willing to pay the price” (26). In this way, it almost appears that the inherent food qualities of chocolate were secondary to its role as a good gift, a symbol of “prosperity and fashionable good taste” (Allen 26). As seen in this media post by Shanghai Jungle, the author writes about how much of the success seen by Ferrero in China can be linked to its good gifting qualities, such as a the company’s premium gold packaging as seen in the image below from a Hong Kong shop.

Chocolate: A Gift That Conveys Love
http://www.shanghaijungle.com/news/Chocolate-A-Gift-That-Conveys-Love

Come 2008, despite economic challenges in China, Ferrero was doing well with the sales of their gift boxes outperforming the overall growth of the chocolate market. However, the development of their self-consumption products remains “elusive” (Allen 204).

It’s helpful to keep in mind that China’s chocolate market is still very young. Chocolate has only been around for a little over 20 years, as pointed out by the reporter in the following news video.

Yet so much of the market has been shaped by chocolate’s introductory role as a high end gift. The Godiva store shown in the video is just one example of the Chinese desire for chocolate as a luxury item for social interaction, rather than an everyday candy for personal enjoyment. Possible reasons for this are the geographic, demographic, and logistical barriers of reaching the masses in China. While high-end “first tier” cities have been tapped into, “consumers who lived beyond third-tier city standards were physically, culturally, and financially inaccessible for chocolate” (Allen 35). Indeed, this is just a start. Starting with China’s major cities, it will be fascinating to see how demand for chocolate will evolve over these next few decades and spread out to the masses. In many ways, the development of a selfless gift giving chocolate market not revolving around its good taste and personal satisfaction is highly paradoxical. But it does show a side of China’s gift-giving culture that chocolate has helped to illuminate.

Multimedia Sources:

[http://upload.wikimedia.org/wikipedia/commons/a/a4/HK_Kennedy_Town_%E5%AF%B6%E7%BF%A0%E5%9C%92_Belcher%27s_Westwood_mall_shop_7-eleven_Ferrero_Rocher_Jan-2011.JPG]

[http://www.shanghaijungle.com/news/Chocolate-A-Gift-That-Conveys-Love]

[https://www.youtube.com/watch?v=m4AzK3ecKwI]

References:

Allen, Lawrence L. Chocolate Fortunes: The Battle for the Hearts, Minds, and Wallets of China’s Consumers. New York: American Management Association, 2010. Print.

Doland, Angela. “Who’s Winning China’s Chocolate War?” Advertising Age. N.p., 8 Dec. 2014. Web. 13 Mar. 2015.

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