International competition for making the best chocolates
Internationally, the chocolate industry controls billions of dollars. According to the Candy industry, the lucrative business contributes $16,800 as net sales in the US- the leading exporter of chocolates.
The company, a watchdog for the chocolate industry, rates the United States as the leading consumer of fine chocolates globally. What is the secret behind the massive profits?
High consumption rate, the quality, and the standards of business operations are among the few factors that lead to such a high business income. The annual sales of chocolate in this part of the continent stand at an estimate of $100 billion.
Europe takes the second position after the US in sales of this candy product. You can’t visit any European country and fail to get to a chocolate shop. It’s like your trip is incomplete.
For example, in Belgium, the number of chocolate shops on the streets is more than that of bars. The culture of chocolate consumption is leverage for the local market; moreover, they are also the biggest exporter of chocolate that contributes to the vast profits.
The stiff competition among the European countries dictates the names of the big chocolate brands: Swiss chocolate, Italian chocolate, among other household names associated with specific countries.
The main reason why these two countries thrive in the sale of candy include:
- Quality of chocolate
International companies don’t make chocolate for commercial purposes; they aim to maintain quality despite the harsh economic times. It’s the quality that makes the big brands in the candy business introduce new and better bars for the local and international markets even if they break-in.
The quality contributes to the high demand for their products making the local business limited in international market penetration. Every day the rival companies have something new for the customers. You are spoilt for choice.
- Availability of raw material
Large scale cocoa farmers have enticing incentives to boost their production. The competitive market prices for the raw material enhance their level of productivity to meet the demand.
In some cases, the government of the day import the products but maintains their standards of production. Research of better cocoa species that grow faster is also a contributing factor to sustain the supply of raw materials to the company throughout the year.
Which country has no distributors or agents of Cadbury? The Franchise is a targeted strategy to reach a vast international market without its actual presence. The companies invest in capacity building, the standard of operations, and company structures to the local companies in disguise to increase the speed of their growth.
It’s a test-the-market strategy; its success is a leeway for the company to get to the market in full swing as they maintain the franchise agreement to the local market to the host country.
It explains why the big names in the chocolate business are in the remotest parts of the said country. The stiff competition goes to an extent the locals don’t know the company names but call chocolate with their brands even when buying from other chocolate companies. You may think it’s a monopoly.
Technology has inroads in many aspects of the business to maintain its international market. In communication, it provides an interactive forum with clients- customers- on what they feel about their brand. In production, it comes in handy with the latest trends in increasing the speed of making more chocolate bars.
In research, it’s the reason there are better cocoa species than what it was some decades back. The business culture and public relations are better, thanks to digital tools that support various aspects of the candy business.
4. International Trade Ties
Continents and countries understand the power of international relations in business. Chocolate companies benefit in this arrangement for they can serve the local and international market as they enjoy the huge profits that come with the extended market. The win-win situation in the business ties is squarely in the import and export business.
As one country allows your imports, you also give back by allowing the exports, its business.
There is a reason why a customer insists on a specific brand of chocolate. As much as you may think it’s customer loyalty, it’s also a matter of the type of chocolate.
Is it just chocolate or fine chocolate? It’s this question the multinationals in the confectionery business know-how and when to answer it through their products-chocolates.