Venchi’s CEO banks on Asia Pacific, gearing up for the “inevitable upturn”

This year, the chocolate brand will enter the Philippines with the first store set to open in the Bonifacio Global City under a partnership with retail giant SSI Group. 

The post Venchi’s CEO banks on Asia Pacific, gearing up for the “inevitable upturn” appeared first on Inside Retail Australia.

Having recently opened a flagship store in Hong Kong’s Lee Garden, the Italian gourmet chocolate and gelato manufacturer Venchi is plotting its larger expansion in Asia Pacific with a meticulous localisation strategy as consumer spending continues to rebound.

“The Asia Pacific region is known for its speed, competition, and evolving consumer preferences,” Marco Galimberti, CEO at Venchi Asia Pacific, told Inside Retail. “These factors have accelerated after the pandemic despite an overall slow global economy.”

Galimberti said that even during the pandemic, when many businesses were forced to scale back their operations, Venchi continued to invest in expanding across the region. This steadfast commitment to growth has positioned the company favourably.

“We strategically targeted high-potential locations to establish new Venchi boutiques, in China, Hong Kong, Taiwan and Singapore knowing that our excellent products would position us for success when the market conditions improved,” said Galimberti. “This proactive approach has allowed us to maintain our brand visibility and accessibility, ensuring that we are well-poised to capitalise on the inevitable rebound in consumer demand.”

Founded in Turin in early 1878, the 140-year-old chocolate brand currently has a presence in more than 70 countries, including Hong Kong, Jakarta, Shanghai and Tokyo. 

New market entry 

This year, the chocolate brand will enter the Philippines with the first store set to open in the Bonifacio Global City under a partnership with retail giant SSI Group. 

“The Philippine market presents tremendous growth potential for premium, high-quality confections, and we believe Venchi is perfectly positioned to capture this opportunity,” Galimberti added. “That’s why we’ve chosen the SSI Group, the country’s largest specialty retailer, as our partner to bring the authentic taste of Italy to Filipino consumers.”

According to Mordor Intelligence, the Asia Pacific chocolate market size is estimated at US$18.30 billion this year and is expected to reach US$24.48 billion by 2030, with a CAGR of 4.97 per cent during the forecast period (2024-2030).

Localisation strategy 

“While Venchi is renowned for its authentic Italian heritage and premium quality, we recognise that consumer tastes can vary greatly from market to market,” Daniele Ferrero, chairman and CEO of Venchi, said. 

The company has local teams to tailor product assortment, flavours, and packaging to match the preferences of each regional customer base. For the Hong Kong flagship, the company launched a collection entirely dedicated to the city in collaboration with illustrator Don Mak. Meanwhile, in China, Ferrero said chocolate is often viewed as an aspirational, gift-giving item rather than an everyday indulgence. 

“We have a Chinese Valentine’s (QiXi) giftbox and Mid-Autumn Festival gift box collection curated to resonate with local festivals infusing Italian ‘allegria’ to Asian culture,” he said, using the Italian term for ‘cheerfulness’. 

Meanwhile, in other parts of Asia, the company found customers gravitate more towards locally-inspired gelato flavours, including durian gelato which was described as “a huge success available during a limited time in the summer in Asia”.

“We strongly believe in fostering a deep connection with the local audience and the local artistry scene while keeping, at the same time, our global vision,” said Ferrero. 

Digitalisation and product innovation 

“One of our key strategies has been to establish a robust omnichannel approach, seamlessly integrating our physical boutiques with a user-friendly, localised e-commerce platform,” Galimberti said. “Customers in the Asia Pacific region can now conveniently purchase our products online, via WhatsApp or WeChat or in our website.”

“This has greatly expanded our geographic reach and accessibility, allowing us to serve customers even in remote or underserved areas,” he added.

Besides its shopping experience, the company also invests in product innovation to reshape its direction of offerings. The company said the R&D team is working on the new recipes, including the ‘No Sugar Added’ collection set to launch soon. 

“Firstly, the growing consumer demand for healthier, more sustainable indulgences is something we are actively addressing,” Ferrero said. 

“Another trend we are monitoring is the rise of plant-based and dairy-free alternatives. While Venchi’s core offerings will always be rooted in premium dairy-based confections, we recognise the need to cater to evolving dietary preferences and restrictions.

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