The FMCG Insider: 5 Minutes with Mauro De Felip, GM of Ferrero Middle East

by Kourosh Asghari 柯罗诗 , VP Consumer Industry, Cornerstone Global Partners (CGP Group)

The FMCG Insider is a look inside China's Consumer Industry through the eyes of local and foreign experts* as interviewed and summarized by Kourosh Asghari, VP of FMCG Industry, CGP Group.?

The first episode features a conversation with Mauro De Felip, General Manager of Ferrero Middle East.

This July, I had the opportunity to sit down with Mauro at his favorite Baker & Spice on a sweltering Shanghai summer day before he transitioned from China to the Middle East with Ferrero. It was unusually quiet for a café in downtown Shanghai, we thought it was probably because the area was busier in the evening times.

Can you share some insights about Ferrero and the chocolate industry in China?

Mauro: Navigating the chocolate market in China is a bit like treading on a thin crust of ice. With one of the world's lowest per capita chocolate consumption rates and flatlining growth over the last decade, the industry's terrain is challenging. However, Ferrero China strides confidently on this thin ice, leveraging our robust, diverse portfolio tailor-made for various consumption occasions. Our edge sharpens with products beyond the realm of chocolate, such as the biscuit category, fueled by our strategic acquisition of the Kielsen business. This move, coupled with other global acquisitions, has helped us carve out a sizable and varied chunk of the snacking market.?

What's an interesting trend happening in the category?

Mauro: The rapid sprouting of snacking stores across China post-COVID paints a fascinating market canvas. These retail spots initially used popular brands as crowd-pullers, but their heart lies in their in-house or OEM brands, offering a vast spectrum of snacks catering to diverse tastes. It's a treasure trove of flavors where everyone can find their perfect snack. It's a treasure trove of choice where everyone can find their perfect snack.

Social commerce is growing at an exponential rate. How do you perceive this change?

Mauro: The social commerce revolution presents a paradox – it's intriguing and intimidating at the same time. While it's yet to become a dominant sales channel for snacking, its potential as a brand-building tool is substantial. However, it's akin to a high-stakes gamble with heavy investment and ambiguous ROI. We've seen brands rise and fall overnight in the chocolate sector due to misplaced emphasis on social commerce, ignoring the building of their core brand equity and omnichannel presence. It's a cautionary tale to avoid blindly following the herd.

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Where do you foresee the demand for talent in the future?

Mauro: The era of digitalization demands an ensemble of skills. Managing the back-end and front-end ecosystems requires a strong blend of sales, key account management, platform partner development, marketing, trade marketing, IT/tech, and data analytics skills. This complex interplay calls for agile responses to shifts in channel-wise consumption and the finesse to balance online and offline ecosystems. It's an environment where youthful energy meets commercial maturity, avoiding the pitfalls of marketing expenditure traps.

As an FMCG GM, what are the key qualities or attributes you believe are essential for effective leadership in this fast-paced and competitive sector?

Mauro: … a lot of stamina to start with! The volatility is still very high and being able to anticipate consumers' choices and customer requests is even more key in China than any other market I have been working in. Agility is another key attribute, the ability to adjust rapidly to the context without compromising the long-term ambition is a fundamental quality to have.

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There are global economic challenges and uncertainty. How do you adapt your strategy during such economic situations and what resources would you prioritize?

Mauro: My credo is to never compromise with quality. We are a private company, and we have the privilege to focus on the long term. So, no shortcuts to satisfy short-term topline or bottom-line targets. Sometimes market swings are so significant in China that to require the need to slow down and manage inventory sensibly across all value-chain.

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Where do you see growth coming from? Product innovation, go deeper, super focused?

Mauro: Innovation keeps being a super important engine of growth, but also keeps increasing our current portfolio penetration across all channels, particularly the proximity, the snacking channel, or Clubs. Also, we continue our strategic journey of expanding our footprint from chocolate into other adjacent categories, such as Biscuits, Sugar confectionery, and others that are under evaluation right now. Our ambition is to become a leading player in the second-largest sweet packaged food market worldwide.

One of the most exciting parts of my role is to speak with experts like Mauro. I wish Mauro the best and I can't wait to see his future successes and achievements! Especially in a new area such as the Middle East!?

*The above interview transcript features a conversation with an individual who is not representing their company. It is important to note that the views expressed during this interview are solely those of the individual and do not necessarily reflect the opinions, policies, or beliefs of their employer or any affiliated organization. The purpose of this interview is to provide insights and perspectives from a personal standpoint rather than as an official representative of a particular company.