by Martina Fuchs
GENEVA, Aug. 29 (Xinhua) -- As the chocolate industry experienced a sharp downturn last year due to the COVID-19 pandemic, Swiss chocolate brand Laderach is eyeing a sweet spot in China with ambitious expansion plans in the growing market.
Established in 1962, the family business plays as one of the largest chocolate retailers in Switzerland, with about 1,300 employees and more than 100 stores operating in 15 countries. However, the nation's chocolate industry was hit hard during the pandemic.
According to the Association of Swiss Chocolate Manufacturers, Chocosuisse, annual sales across the industry fell sharply by 14.5 percent in 2020, while the volume of chocolate produced in Switzerland fell by around 20,000 tonnes to around 180,000 tonnes.
Swiss per capita consumption of chocolate was also lower than at any time in the past 40 years, dropping below 10 km for the first time since 1982.
Johannes Laderach, the company's CEO, said it was time for it to expand beyond the chocolate-loving nation of Switzerland, and head East.
"A year ago we started with an online presence at Tmall, and in our own online store with a small team in China. The sales exceeded our wildest expectations. We are now opening our retail presence earlier than planned," he told Xinhua in a recent interview.
He stressed that Shanghai would mark a first entry point into the vast Chinese market. "We really believe in the city of Shanghai as the business capital of China. Other cities will also follow, and of course with our e-commerce presence we are available in the whole of China."
The company's executive said his business strategy for China would focus on both e-commerce and physical presence.
"In October, we plan to open another store in the new Harrods which is going to open in Shanghai. Then we will reassess the situation to plan our further expansion. We would like to have a true omni-channel experience: retail combined with e-commerce availability," he said.
Laderach emphasised that the Chinese love affair with chocolate is growing, which could give a boost to Swiss chocolate manufacturers.
According to data from the Swiss Federal Customs Office, China ranked Switzerland's eighth largest import market for chocolate in 2020, accounting for 2.7 percent of the total.
"We are seeing changes in taste, and Chinese people wanting more and more chocolate, whether as gifts or for themselves," said Laderach. Enditem
