The extremely challenging sales environment in China has led to Ferrero Group quickly adapting to new distribution models.
Recently, Ferrero has been expanding into emerging sales channels such as live streaming, to counter slowing sales in brick-and-mortar outlets. A Ferrero spokesperson said that it is crucial for the company to perfect its online-to-offline business model to be as close to real-time retail as possible as this sales channel is developing very fast. Deliveries need to reach consumers within half an hour in order to satisfy their demand immediately.
After the pandemic, Chinese consumers are growing accustomed to ordering online due to its convenience and its ability to make last minute shopping at anytime unlike offline shopping.
Nevertheless, Ferrero will continue to focus on sales through conventional physical stores, and in particular, partnerships with high-end members only stores. It is also exploring sales in convenience stores in China’s smaller 2nd and 3rd tier cities.
China is one of Ferrero’s leading consumer markets worldwide.
