Chinese snack titan Want Want will extend its product line this year after strengthening its position in China.
The products include Mini sugar coated rice crackers and Cheese-flavored savory rice crackers as well as a range of sweet snacks such as Sip & Slurp and Rock n' Roll.
The local giant had launched 15-20 products each year in the past. China Market Research (CMR) analyst Michael Zhang said the boost in the company’s offer was likely a result of its completion of splitting the product divisions within the company - a process that aimed to expand market coverage further into lower-tier cities in China.
“These new adjustments have strengthened the company and Want Want needed to develop more products to gain more market share,” Zhang told BakeryandSnacks.com.
Just the way they like it
Despite a strong pressure from bigger, foreign brands, who dominate some sectors (such as chips), Want Want were doing well in the domestic snack market, he said. “Want Want China have a good Chinese name, which represents fortune in Chinese. Consumers like to buy products representing good luck, especially in holidays like Spring Festivals.”
Moreover, its advertisements were designed to directly target children and the price of its products set to be affordable for most.
Sip, slurp and Rock n' Roll
The sweet taste of the new, quirky products such as Sip & Slurp and Rock n' Roll was what Chinese customers looked for in their snacks. “Although Chinese consumers have a wide range of taste in snacks, sweet is one of the best choices, especially for consumers in South China and East China,” Zhang explained.
“Many of the products entering the market in 2014 were likely to be the updates of old products, just adding more flavors and making a few adjustments,” he added.
Getting what they paid for?
Although Want Want offered competitive and market-tailored products, foreign brands still had their own advantage. “As consumers in China pay more attention to health, they tend to choose brands which offer better quality. In their minds, foreign brands, especially US and European brands typical have better quality control than domestic brands,” said Zhang.