Sugar Confectionery - China - December 2014
“The sugar confectionery market faces slowing growth and high fragmentation, leaving brands vulnerable to weak market share and poor consumer loyalty. Leading companies are selling more higher-end products to alleviate this, but have done little to target the needs of specific consumer groups based on gender or age group lines. Sugar confectionery products aimed at specific demographic groups could focus on functional benefits and natural ingredients, suited to the needs of each group, such as helping with nutrition or avoiding ailments. The high degree of market fragmentation means margins are being squeezed and brand penetration remains low. Online retailing offers the potential to reach more consumers across the country and create closer communication and engagement with consumers, and from that more responsiveness to their needs. Fragmentation also means companies must raise economies of scale, and online retail also provides a means by which to reduce costs while reaching more potential customers.” - Matthew Crabbe, Director of Research, APAC.