Choi Hong Yuen Bakery Aromas Wafting for Seventy Years Established in Macao in 1935, ChoiHong Yuen now has six stores anda 40,000 square foot factory in Macao.The company employs 150 people in Macaoand has an average daily productionof about 200,000. There are over 30 salesoffices in Australia, Canada, Singapore andthe US. This shows that Choi Hong Yuen canboast not only a long history but also a large overseas marketing legacy. Even Split Between Local and Overseas Markets Allan Wong, Managing Director of ChoiHong Yuen said, “Before 1997, local salesaccounted for 80-90 percent of the totalrevenue. Although we had a long history ofselling our products overseas, it was not significantamount of our total business. But during the period when Macao’s economicsituation and public order was in a bad state,we decided not to depend on the local marketalone but to focus overseas. As a result, weinvested significant resources in packaging,advertising and marketing.” Last year ChoiHong Yuen saw its sales jump by a robust20%. Sixty percent of their sales came fromlocal purchases with the remainder comingfrom the international market. “There arenot so many local brands in Macao. Overseascustomers did not know much about Macaoin the past, but that was changed by Macao’shandover to the Mainland and the liberalisationof the gaming sector. Our internationalexpansion has also benefited from it,” maintainsMr. Wong. “Now we have achieved amore balanced ratio between local and overseassales and hope to improve it further.”Mr. Wong believes that ideally local andoverseas markets should each account for 50percent of their business. It is not easy to tap the overseas market.For example, it is most important to comply with local labelling regulations. This is why on every pack of Choi Hong Yuen, in addition to the Chinese and English list of ingredients, content numbers, net weight and nutritional facts, French, Japanese and Korean languages are also included, as well as (of course) the “Made in Macao” emblem. Product Launch Overseas “Our goal is to tap the undeveloped markets.” When asked about how to expand internationally, Mr. Wong replied, “Snacks are traditionally considered Chinese food, but overseas Chinese are only a very small percentage of the total population. In the past we only focused on the market of overseas Chinese buyers, but from last year, we began to work on the mainstream market, particularly the local population.” He acknowledged, “It takes a long time for westerners to accept Chinese food just as one cannot expect Chinese people to like western food overnight.” So the company plans to organise more taste-testing opportunities overseas and improve the packaging and design so that “these markets will know that we take them seriously.” What did they learn from past exporting experiences? Mr. Wong said modestly,“we did have some experience, but we were not so successful.” He is confident about the overseas market, although there will be challenges and modifications to be undertaken to tailor the product for the varied markets and various preferences. Modernise to meet social demand Choi Hong Yuen’s flagship store is located in Rua do Regedor, Taipa. It is the only souvenirop in Macao with an in-house café. Mr. Wong, the third-generation owner of Choi Hong Yuen said, “Customers can eat almond cookies and Chinese tea in our store. It is a very relaxing atmosphere. We do our business in an open style, so customers are part of this experience. These are just a few of the changes we have made.” The company will not develop overseas markets at the expense of the local one. Mr. Wong mentioned that they would open three additional stores in Macao this year. The most important being in the Venetian Grand Canal Shoppes located in Cotai.“This store is very important to us because the Venetian Sands Macao is a well-known international brand. It is not cheap to run a store in the resort, but we have decided to do so because we can build and upgrade our brand. This way our customers will know we are building a solid brand” Choi Hong Yuen is still best known for its almond cookies, phoenix rolls and beef jerky. But with continued innovation and more new products, they now have over 100 kinds. “We launch new products every year to keep our customers interested and maintain a sustainable growth for our company.” Mr. Wong was totally confident when talking about the future. Choi Hong Yuen will actively participate in MIF and the Canton Fair so that more people will become acquainted with their brand. Despite some human resources constraints, Mr. Wong insists on “Made in Macao” because“that is where our value lies and that gives our customers confidence.” |