Lindt pushes into Asia for further growth
The world’s most iconic luxury chocolatier, Lindt & Sprüngli (Lindt) is making a play to engage further with Asian audiences, seeking to leverage the region for further growth. Its mission began in earnest earlier this month, when it attended the Tax Free World Association (TFWA) Asia Pacific Exhibition & Conference 2018 in Singapore. It chose this venue to display some confectionary specifically designed to appeal to Asian customers, including a special edition Chinese New Year gift set, as well as eastern takes on its more traditional products, like the Lindor Delux Heart.
Lindt’s share price has risen by 8% so far this year
SOURCE: Yahoo Finance
Lindt’s made it quite clear why it wants to look for growth in the East: in a largely stagnant global chocolate market last year, it saw its business grow 33.3% in Asia. In a statement, the company said: “gifting is important to the travelling Asian customers, confirming its prominence in the market. Our goal is to drive market share in the Asian region.”
However, the ways in which Lindt plans to do that change from country to country. In Japan, for example, the company says it “puts the focus squarely on exceptional customer experience. In 2017 alone, we opened 10 new boutiques which total 30 shops across the country.”
Whereas, in China, Lindt is making more of its Ecommerce channel and local distributors in major cities. The company said: “Our Ecommerce channel achieved unusually high growth in 2017 due to the high visibility of the Lindt flagship e-store in China’s leading online marketplaces, Tmall and JD.” It also said that Lindt’s growing presence as a New Year gift in Mainland China was helping to drive growth in the region: “the stronger presence at wedding fairs, in order to profit from the rising popularity of premium chocolate as a wedding gift, also improve brand awareness.”
But Asia is more than just China and Japan: Lindt also saw strong growth in Thailand, Singapore, and Hong Kong. And it plans to make the most of this growth, gearing its calendar “towards the end of the year, which is when most Asian festivities and celebrations take place.”
Dominion holds Lindt & Sprüngli in its Global Trends Luxury Fund.
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