NEW DELHI: The chocolate market in India is estimated to be around Rs 11,000 crores and is primarily dominated by the FMCG segment which offers chocolates in conventional formats at popular price points. Having said that, a sizeable number of consumers also seek premium and international chocolate experiences.
Home-grown luxury chocolate brand Fabelle, from ITC Foods, launched its first chocolate boutique to retail chocolates in the country in 2016 from Bengaluru and has expanded to 14 boutiques across the top six metros. To further extend these experiences to masses, the brand entered the premium mass segment in 2018 in two unique formats – center-filled bars called Fabelle Soft Centers, and multi-layered bars known as Fabelle Choco Deck. Now, it has added another product to its portfolio – the ‘Fabelle La Terre’, a creative reimagination of 100 per cent earth positive chocolate that is sustainably manufactured.
According to ITC Ltd COO- (chocolate, coffee, confectionery and new category development – foods division) Anuj Rustagi, the expertise in understanding the Indian palate and delivery of luxury chocolate offerings at par with global standards have helped them build a loyal and strong consumer base across age groups. “Our network of boutiques and online presence through e-commerce platforms and food delivery agents like Swiggy and Zomato have enabled us to take our one-of-its-kind chocolate experiences closer to the consumers.”
In the near future, the brand is aiming to become a significant player in the market, similar to what ITC has achieved in categories like atta, noodles, biscuits, and others, related Rustagi.
Fabelle chocolate are priced in the range of Rs 350 to Rs 1,00,000 in the luxury segment, and Rs 25 to Rs 350 in the mass premium range. So far, it has been catering successfully to consumers across relevant age groups and SECs.
The brand’s media choices have been to sharp target consumers in key geographies using digital as a key medium, Rustagi said. This enables the consumer to get more information and engage with brands directly, especially in the luxury segments. “The digital medium has also worked effectively for us in recent times and continues to do so. Besides digital, positive word of mouth has been a key part of our marketing communication mix in building the brand’s familiarity amongst the larger audience, alongside our new, trendsetting launches like Ruby Gianduja, Trinity Truffles, Fabelle La Terre and work with chocolatiers like Billie Mckay, Sarah Todd, etc have given Fabelle the desired visibility.”
The brand is also using direct marketing to engage with UHNI and HNI consumers and creating customised experiences in gifting and for self-consumption.
Rustagi went on to add, “We also leverage our strong network of boutiques across six metros in the country to drive the consumers’ attention towards the elaborate range of our chocolate offerings.”
He shared that in the initial months of lockdown, the chocolate business was impacted due to the change in consumers’ purchase behaviour. People were more bothered about stocking essentials due to concerns about continued supply, driving demand for the category. Thus, indulgent and non-essential products, including chocolates, were severely hit.
“However, as focus on the purchase of essentials has eased and the availability of goods has improved, consumers have resumed spending on indulgent categories. We are witnessing recovery and are expecting the festive months ahead to augment that momentum.”
Rustagi explained that ITC Ltd’s Q2 report also indicated that the chocolatier is almost at par to the pre-pandemic level. “The economic data pointed towards resurgence and we are also experiencing a week-on-week recovery, and if the same continues, we hope to perform better than last year. If we are able to achieve the same, it will be quite an accomplishment, considering how the majority of the year has been.”
