In 2024, Hsu Fu Chi (徐福记), a snack food maker from Guangdong being 60%-owned by Nestle, has made a significant presence in Malaysia to tap the Chinese New Year market. In China, the company is known as a beloved brand for gifting during Chinese New Year, a tradition deeply rooted in Chinese culture.
The fortune of Hsu Fu Chi, which relies heavily on Chinese New Year sales, has waned as the company struggles to adapt to changing consumer habits. The brand has recently entered the healthy snacking segment with offerings like lower sugar snacks and healthy nut mixes in response to this shift.
To stimulate sales, Hsu Fu Chi has set its sights abroad and is replicating its Chinese New Year strategy in Malaysia. This Southeast Asian nation, with 23% of its population classified as ethnic Chinese, is an untapped market for the bulk selling of Chinese New Year confectionery through the mix-and-match approach. Apart from confectionery, the company sells gift packs containing assorted Hsu Fu Chi products, including sachima, pineapple cake, nougat, crispy candy, and cheese rice roll.
Nowadays, consumers crave variety and go beyond the offerings of a single brand. Hsu Fu Chi’s bulk sale approach may not appeal to these increasingly diverse preferences.
In Vietnam, for example, selling popular Tet treats like nuts, jellies and candies from different brands for the Tet holiday makes it more appealing to shoppers seeking more choices.