Innovation key to Perfetti Van Melle's China resurgence, says executive

After working in management positions in the Netherlands and Brazil, Purple Quan returned to China in 2019 to become director of marketing and e-commerce at Perfetti Van Melle Confectionery (China).

There, she was confronted with myriad challenges in the market. "We faced obstacles in China, such as rising raw material costs, market saturation across all product lines and a decline in market demand. It was crucial for us to identify emerging opportunities and establish new avenues for growth," Quan said.

After five years of exploration and strategic adjustments under Quan's leadership, Perfetti Van Melle, the Italian confectionery powerhouse that has brought joy to Chinese consumers for three decades through beloved brands such as Alpenliebe, Chupa Chups, Mentos and Big Babol, has been intertwined with countless sentimental occasions in the hearts of the Chinese people, and it is poised to reclaim its flourishing presence in the nation.

In 2023, Perfetti Van Melle (China) recorded an annual sales revenue of 3.61 billion yuan ($505 million), marking a 23 percent year-on-year increase.

Throughout the 2024 Chinese Spring Festival season, Perfetti Van Melle stood out as the only candy brand in China to experience positive growth among its industry peers, according to research firm Nielsen. In Chinese culture, candy represents a sweet and auspicious beginning to the new year, making sales during Spring Festival a pivotal determinant of a candy business's performance.

"The positive momentum will continue throughout the current year," Quan said.

According to Quan, establishing new categories to broaden the industry's scope and strengthening brand development have been key factors that contributed to her success in China.

Raising industry revenue

Since its inception in China in 1994, Perfetti Van Melle has observed transformations within the Chinese confectionary industry. The sector has evolved from a time defined by a lack of sweet products to a prominent emphasis on reducing sugar consumption. Today, the success of candy enterprises in China relies on their capacity to introduce fresh and appealing concepts that resonate with changing consumer tastes.

Four years ago, Quan adeptly capitalized on this shift by leveraging her understanding of both the Chinese and overseas markets. In 2020, Quan led her team to introduce Chupa Chups Sour Belt, an extruded jelly variant, to the Chinese market.

Renowned for its fruity flavor profile and vibrant rainbow design, the Sour Belt series not only pioneered a new product category in China but introduced the innovative concept of a "candy snack" to its consumers.

Quan said that the "candy snack "is a treat that strikes a balance between sweet and sour, distinct from the sweetness of traditional candies. It is not only visually appealing and playful but perfect for sharing on social media platforms. This product transcends confectionery, catering to a wide demographic across different occasions and age groups.

"We redefined the concept of candy in China. The product has pushed through numerous boundaries, creating what many would consider industry miracles or the seemingly impossible," said Quan. "It not only helped Perfetti Van Melle to expand its market share but also established a new avenue in the industry to expand the overall market scale."

In 2023, Perfetti Van Melle's sales of Sour Belt products reached about 160 million yuan, ranking first in the industry.

After conducting data analysis and in-depth consumer research on product packaging, pricing, channels and occasions, Quan led her team to develop a more diverse product portfolio in different pack sizes and prices suitable for different occasions and channels, such as the One-meter Sour Belt, Sour Belt Bites, Mini Sour Tubes and multipack options, over the last few years.

In 2024, Perfetti Van Melle's Chupa Chups Mini Sour Tube clinched the iSEE Award for Global Food Innovation, earning the Bronze Award. Furthermore, its One-meter Sour Belt won a coveted spot in the iSEE Award Top 100 Innovative Brands List.

Enhanced brand building

Over the past few years, Quan has been leading brand upgrading within Perfetti Van Melle (China) with the aim to not only elevate the brand but foster deeper connections among people, underscoring the power of shared experiences and joy.

A series of innovative marketing endeavors were also set to propel the original contributions to the industry. These initiatives included setting two Guinness World Records using Alpenliebe lollipops, marking the first of its kind in brand-building campaigns in China. Additionally, the annual "Bring Hearts Home, Hand Out Candies for Love!" Spring Festival marketing campaign has been running since 2020. It is the only brand in the industry that persists in long-term thinking around the same theme for Chinese New Year marketing. It also successfully transformed these sweet treats into not only confectionery but into symbols of delight and achievement for consumers, according to Quan.

In 2020, she led the Mentos team to reverse the brand's previous double-digit decline by leveraging a marketing campaign in collaboration with One Piece to reignite the brand. This candy brand is the first in China to utilize comic intellectual property to bolster its marketing campaign covering not only product promotion but also strengthen engagement of young fans, helping to create a lasting impact of the brand and success. Similar brand-building partnerships were created with popular games like Honor of Kings.

Positive future

At the suggestion of Quan, Perfetti Van Melle has launched two Sour Belt production lines in China over the past two years to meet both local and international demand. So far, both production lines are operating at full capacity, according to Quan.

"The investments underscore our commitment to our long-term plans and objectives in China," she said.

Quan thinks that the extruded jelly category could potentially yield 1 billion yuan in sales revenue for the company in the coming years.

Reflecting on her five years of experience in China, Quan said: "I believe my success lies in guiding the team to achieve brand and business growth through product and marketing innovation, while also ensuring a consistent expansion of market share.

"Innovation is a cornerstone principle for us, extending beyond mere product development. When introducing a new product, we must pair it with a strategic approach and a well-crafted marketing strategy. This involves making calculated decisions at the right time, in the right market, and targeting the appropriate audience to create a synergistic impact."

tangzhihao@chinadaily.com.cn