Lotte Wellfood has established its first overseas production base for its flagship snack, 'Pepero,' in India, marking a full-fledged entry into the local market. Lotte Wellfood announced that it has completed the construction of a Pepero production line at LOTTE India's Haryana plant and began production and sales on July 9 (local time). This is the culmination of a large-scale project decided by Lotte Wellfood in January of last year, with an investment of approximately 33 billion won (2.1 billion rupees), and it marks the first time Pepero is being produced directly outside of Korea.
Knocking on the Door of the 1.4 Billion Indian Market
Through the Pepero production line at the Haryana plant, Lotte Wellfood is introducing Pepero for the first time to India's enormous confectionery market, which boasts a population of 1.4 billion and is valued at approximately 17 trillion won. Considering the high demand for chocolate in the local market, Lotte Wellfood will initially launch two varieties: Original Pepero and Crunky Pepero. Sales will gradually expand across India through various distribution channels, including large hypermarkets and e-commerce, starting with the Delhi region.
Technology and Marketing Strategies for Localization
India's hot and humid climate poses challenges for chocolate product production. To overcome these local climate conditions, Lotte Wellfood has focused intensively on developing a product where the chocolate portion does not melt even at 40 degrees Celsius. Furthermore, for the crispy stick biscuit, which is key to Pepero, the company has thoroughly localized its efforts by discovering optimal flour ingredients and securing stable suppliers.
The marketing strategy also reflects the characteristics of the Indian market. Lotte Wellfood has targeted India's Gen Z (born in the mid-1990s to early 2000s) as its primary audience. Starting in September, a large-scale campaign will be launched with global ambassador idol group Stray Kids to actively promote the Pepero brand to young local consumers. This strategy is interpreted as an effort to increase brand awareness and foster familiarity by leveraging the high popularity of K-pop.
'One India' Strategy Aims for 1 Trillion Won in Global Sales
The local production of Pepero in India is part of Lotte Wellfood's 'ONE INDIA' strategy. Lotte Wellfood recently successfully completed the merger of its subsidiary LOTTE India and Indian ice cream company Havmor, maximizing synergy in the Indian market. Based on this integrated strategy, Lotte Wellfood aims to achieve annual sales of 1 trillion won in the Indian market by 2032.
A Lotte Wellfood official stated, "To strengthen Lotte's brand dominance in the Indian market, we are introducing 'Pepero' after 'Lotte Choco Pie.' We will leverage our enhanced competitiveness in India as a stepping stone to grow Pepero into a brand with 1 trillion won in global sales."
Lotte Wellfood plans to introduce a wider variety of Pepero flavors in the future, reflecting the diverse tastes of Indian consumers. The company also intends to actively promote Pepero exports to the Middle East and Southeast Asian regions, using the Indian production base as a hub. Attention is now focused on whether Pepero, starting with India, will become a pioneer in raising the status of K-snacks in the global snack market.
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