Mondelēz’s biscuit brand Oreo has launched two new spring limited offerings available in cherry & matcha flavor and white peach & oolong flavor. Oreo also launched crossover cosmetic products by cooperating with China’s makeup brand Perfect Diary. The crossover cosmetic product is a limited edition gift box with two air cushion powders representing its cherry & matcha and white peach & oolong new flavors.
Oreo's new spring releases were first launched in convenience stores. The products were also launched on Eleme, Taoxianda(integrated online and offline selling platform of Taobao), and other online platforms.
New Channel strategy
O2O is a business model in which retailers use both online and offline channels to sell products to consumers. Through online marketing and advertising, retailers inform consumers of product and service information and channel traffic and sales towards brick-and-mortar stores. In China, Hema Fresh by Alibaba Group is an excellent example of a successful O20 business. For Oreo, it is the first time the brand has launched its products in convenience stores. Last year, products from the brand's collaboration with the Palace Museum were initially launched on e-commerce channels. Usually new products are launched in supermarkets.
The COVID-19 epidemic has greatly influenced the sales channels of snacks, with online platforms and convenience stores becoming more important shopping channels. The convenience store is a community-based retail mode. In China, it has transformed into a comprehensive outlet supported by an advanced digital ecosystem and delivery services. By increasing its presence in more convenience stores, Mondelēz is aligning itself early with new consumption trends in China.
Mondelēz's biscuit business has been on the rise in recent years. It achieved high single-digit growth in China in 2019 [1], based on the outstanding performance of its biscuit and gum business in e-commerce and offline channels. In the last month, Mondelēz’s biscuit business in China peaked, hitting a nearly seven-year high. It has entered about 140,000 new stores in China and aims to expand its sales channels to third-tier cities [2] in 2020.
Brand Takeaways
According to the Research Report and Industry Trend Outlook on the Financial and Operational Impact of COVID-19 on the Chinese retail industry jointly released by Deloitte China and China Chain Stores Association, shopping centers suffered most during the pandemic, with 60% seeing customer flow decreasing more than 50%. 57% of supermarkets and 38% of convenience stores said their customer flows had been negatively affected by 10%-30%. In contrast, impacts on the customer flow of online shops have been minimal, with nearly one-third of online malls recording no negative impact on traffic. For e-commerce platforms that provide home delivery and other online services, business is booming.
The COVID-19 pandemic has accelerated the penetration rate of the O2O model in various fields. Supermarkets and convenience stores that have expanded O2O and community-based businesses are experiencing rapid growth. Utilizing China’s local O2O channels is crucial for foreign brands to reach the new generation of China's "New new normal” consumers.
Disclaimer: All images used are from the internet.
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