While consumers in the US, for example, consume more than 10 billion bowls of soup each year — driving Campbell’s 69 per cent market share in that country — Chinese consumers are considerably less enamoured with canned soup, preferring homemade versions instead.
Accordingly, Campbell’s has opted for a new direction in the mainland, which reportedly involves the launch of a new chicken broth product.
In China, of course, chicken broth is the ‘engine oil’ behind many local dishes — in homes and in restaurants. By eyeing the ready-to-use, rather than the ready-to-eat, category, Campbell’s new move draws inspiration from the success of its Swanson’s chicken broth in Hong Kong.
At present, chicken broth preparation in China revolves a
ound powder and bouillon-based products; the days of making the stock from scratch are, apparently, long gone. With this in mind, Campbell’s decision to roll out a chicken broth may be a smart one, particularly as it will stand out from the other broths on sale.
As Chinese consumers become busier, demand has grown for a broth product that is nutritious, tasty and — crucially — quick to prepare.
But Campbell’s will face a real credibility challenge as a Western company that is entering a ‘Chinese’ category.
In China, Western companies are often expected to focus on Western products — Campbell’s decision to localise its new product will throw up new questions about the corresponding brand architecture.
The company must also overcome the habitual barrier, in a country where consumers are more attuned to and familiar with the current broth powders that dominate the category.
But if it can, the rewards could be huge — particularly if it can effectively forge a foothold in the country that countsmany millions of soup consumers.
