Pan Asian Snack Brands in China : How Are They Still Successful!?

When it comes to snacks, much like many markets, we have three segments of brand powers: Chinese, American/European and Asian.

This third segment is particularly interesting. They have had the advantage of having a better grasp of the Chinese palette than American/European competitors and have had the means and know how to better brand and mass market their products, than local competitors.

Taiwanese brands like Wang Wang and Master Kang are well established snack brands in China. Their ranges of biscuits and candies have resonated with the eighties generation who grew up with them. Now with new ‘sweeter’ western competition, how do these brands still compete? Largely they still rely on the good ol’ telly box.

Snacks need to be marketed on a mass level, there’s no room for niche snacks (local street sellers see to that). Thus, TV still provides the means to reach a mass target audience, with little regard to location or economic stature.

Kang Shifu has always relied heavily on brand endorsement from (Taiwanese)celebrities.

Popular Taiwanese Boy Band, Fahrenheit

Popular Taiwanese girl band, S.H.E.

Recruiting celebrities is often the go to marketing method for larger brands when targeting a broad base of Chinese youth. Effectiveness is measured from sales, market permeation, and brand connection. Master Kong last quarter saw its net profits increase $249million USD. They have achieved this by targeting middle to high end consumers in both urban and rural areas through TV commercials and price promotions. These areas are a more traditional marketing route and all of the credit cannot be given to a celebrity endorsement.

Wang Wang’s logo can be said to be synonomous with snacks in China as they are the largest producer of rice cakes in China. They have a strong TV presence in which they stress product and feeling over celebrity endorsement.

This playful commercial shows how Wang Wang has also looked to update and repackage older traditional snacks and sweets. Traditional fruit jelly snack ‘guobing’(果冰) is refitted for a younger generation in the format of the Yappy Jelly Tube. The Wang Wang website says, “The latest trend in eating jelly is to eat it out of a tube!”.

While many of the eighties generation will have grown up with Wang Wang and the other popular Taiwanese and HK snack brands, these companies must reinvigorate product and marketing for them to maintain a connection with a younger audience who are surrounded by an even wider array of snack choices from domestic Chinese competitors.