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Chocolate connoisseurs

Chinese consumers are learning to enjoy chocolate, but not if it's Chinese

---By Dominique Patton

I don't really like chocolate," says Guan Yue, a volunteer at the World Chocolate Wonderland in Beijing. Craftsmen sculpting warm chocolate into displays of traditional Chinese artefacts and Western novelties have done little to convince the 23-year-old of the pleasures of the cocoa bean. Yue is representative of the theme park's target segment - young Chinese consumers who will need to be persuaded before they swap a conventional snack for a bar of chocolate. Chocolate Wonderland's sponsors are convinced it will be useful in educating a new consumer base. "This platform is a great opportunity for Lindt & Sprščngli to promote true chocolate culture in China," says Thomas Meier, managing director of the Swiss brand's China operations.

Lightweights

The average Chinese consumer eats just 90g of chocolate per year, according to Euromonitor. Consumers in Lindt's home market munch their way through 12.4kg of chocolate annually. Most of that is inexpensive milk chocolate made by Mars or Nestle, not the premium chocolate marketed by brands like Lindt.

Chocolate in any form has never been part of the Chinese diet, but its popularity is rising along with an increased appreciation for coffee and wine. And just as with other foreign treats, discerning Chinese consumers want authentic European chocolate.

"People always ask where the ingredients are from," says Polly Lo, one of the founders of Beijing-based artisan chocolate-maker La Place Collection. "They want to check that the chocolate is really Belgian or French."

La Place does a brisk trade, mostly with Chinese companies offering chocolates as gifts to valued customers. When the business launched five years ago, many of its first sales were to IT companies, says Lo, probably because this industry was the most outward-looking. It often employed overseas Chinese who had developed a taste for chocolate. Now La Place's clients include banks and energy firms, and business has become a barometer for economic health. "Whoever is making money comes to us," laughs Lo, adding that companies are buying bigger boxes these days.

'Tis the season

Sales are busiest during mid-Autumn festival when the company offers chocolate mooncakes. Truffles for Chinese New Year and Valentine's Day are also increasingly sought after.

The emerging science that suggests dark chocolate has health benefits is also a major boost for chocolate makers in China. "Consumers here really follow the news about healthy foods," says Laurier Dubeau, Lo's Canadian partner and the creative force in La Place. He likes to nurture this image, using other healthy ingredients including a variety of dried fruits, nuts and seeds in his truffles.

Lindt is also seeing growing interest in its dark chocolate products sold in high-end retail outlets and hotels in Beijing and Shanghai. The company recently launched a chocolate bar that is 99 percent cocoa in content, and has been surprised by the demand in China.

Still, the market for premium chocolate remains very small. Henri Langermann, Asia-Pacific business development manager for Barry Callebaut, the world's biggest chocolate supplier, says the firm's gourmet division caters mainly to hotels and restaurants in China, rather than chocolate shops, the mainstay of its European business.

But there is growing demand from entrepreneurial Chinese chocolatiers. Barry Callebaut's chocolate academy in Suzhou trains professionals to create truffles and chocolate deserts and more of its students want to open their own chocolate shops.

Foreign cachet

The problem, however, is that Chinese customers often prefer to see a foreign chocolatier, says Langermann. That's good news for foreign-invested businesses like La Place and established European brands like Lindt, which expects to become the leader in the premium segment here. However, domestic producers have their work cut out for them: Their survival will depend on whether they can cultivate a younger consumer base with a sweet tooth and less need to spend on lavish gifts.

Eyeing Lindt's chilli-flavoured chocolate on display at Chocolate Wonderland, Guan Yue says: "For me, it's really hard to see why you would want to put chilli and chocolate together."

Class act

Chinese learning centres motivate students with more intensive programmes

By Dominique Patton

Scores of Chinese language schools in Beijing, Shanghai and other cities give foreign students a wide array of options for learning the local language. Individual students use different criteria for deciding where to spend their money on classes, including cost, location and curriculum. But despite generous pricing by newer schools, an effective programme remains the deciding factor for expatriates who want to speak well.

Making the right choice

For some, choosing a language school is influenced by company contracts with specific establishments. For example, many German companies in Beijing pay for their employees to take Chinese classes at the Bridge School. Google and other high-tech companies in Haidian district work with the nearby That's Mandarin.

For those paying their own way, location is an important factor. But the quality of teaching is what keeps the most ambitious students going to class. Kristi Gallego, an American, did a thorough search of Chinese schools before selecting the Bridge School when she arrived in Beijing more than a year ago. She has now completed more than 200 hours of class there. "I have some teaching experience so I knew what I wanted for myself. The teaching methods are very good. We use DVDs and flash cards, and I was impressed with the first two books." The Bridge focuses on speaking Chinese for everyday situations, leaving reading and writing characters aside, unless students are keen to study hanzi as well.

Gallego's French classmate, Isabelle, says this approach works well. "They really teach you what you need. There's no superfluous stuff at the beginning."

The success of this method is demonstrated by the numerous schools offering similar courses, often by former Bridge teachers, says Bridge marketing manager Molly Miao.

She claims, however, that the school, one of Beijing's longest established, continues to improve its method, frequently inviting professors and other experts to give seminars on new teaching techniques to its staff of 100 teachers. This is becoming more important as the school sees a growing number of high-level students.

Better and better

"About 60 percent of students only reach level two," says Miao, which requires about 150 hours in group classes. "But in the last few years we have seen a better level of Chinese speakers. We're now working on improving our teaching for these students." One such student, Joe Burke, a former manager of a software firm, is using a redundancy package to improve his Chinese. He does 10-12 hours of private classes each week at the Bridge school and several more hours of homework.

"I'm doing it to help me stand out in the future. This country has shown that it's going to be big in the global economy and in the general manager roles I look for, languages are a bonus."

Another ambitious executive has also taken extra time out recently to boost his level of Chinese. John Collins, an Irish manager at a multinational, selected That's Mandarin, a Beijing school with plans to expand to Shanghai. "In December I had a little bit of spare capacity so I did an intensive one-month course with two 50-minute classes on week nights and four classes at weekends."

Speaking up

He chose That's Mandarin for its focus on interactive dialogue, described by school founder Xiao Chao as 'storytelling'. The school uses no written material. Teachers work with students to build stories, which are sometimes based on DVDs watched in class. Each class is recorded and emailed to the student.

"I wasn't really using the vocabulary I had learned in a proactive manner. The school is good at getting that out of you. You build a story with your teacher, change things, and work on new phrases," says Collins.

Any student with a reasonable level of Chinese knows that the language requires significant personal investment. But more effective class time means faster progress and encourages students to keep studying, say those behind schools like the Bridge and That's Mandarin. And if students need extra motivation, perhaps they should follow Collins' example.

"I set myself a goal. I told my team that they would see visible improvement in my Chinese after one month. My team is not one for flattery but there was agreement that it got much better."

LANGUAGE SCHOOLS: Q&A

Kerry Burton, business development director for New Concept Mandarin

Q: Who are your students?

A: Our students are Western expats working for foreign companies or running their own businesses in China, as well as their families.

Q: What should potential students look for when they are looking at Chinese study programmes?

A: Many foreigners lose focus when they look for Mandarin programmes. They end up just comparing prices and bargaining for the cheapest option as if they were in a Chinese flea market. To make a wise choice, they have to visit the training companies, learn about their history, check out their materials and take a demo class so they can experience the teaching.

Q: What makes you unique?

A: New Concept Mandarin was founded by university professors and linguistic experts dedicated to helping Westerners learn to speak Mandarin in the most effective and enjoyable way possible. Moreover, we believe that as a German-owned company, we have a culture of high-quality and effectiveness above all else.

Q: What are your strengths?

A: Our strengths are our methodology, our trainers, our materials and our delivery modes. Our methodology was developed with Western expats in mind. Our trainers in all our schools are trained in that methodology. We develop all our own materials based on that methodology and these materials can be used outside the classroom for independent study, and they correspond to what is being taught during the class time. Our clients can expect the same quality programme at all our centres across mainland China, Hong Kong, Singapore and the Philippines.

Q: How do you encourage them to use those independent study tools?

A: The quality and convenience of the tools encourages students to use them. Our clients are busy people who want to make the best use of their time. They have a lot of stress from their busy work so they do not want learning Mandarin to become an extra burden.

Q: How do you measure your students' progress?

A: Our goal is to help each client achieve the best possible results for themselves. Each client has a different job, interests, learning styles and abilities. Our trainers must understand each client and tailor the course accordingly. As long as we continue to do this well, we believe our clients will make good progress.

 
  China Economic Review
European Union Chamber of Commerce in China

  
   
 

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