Zotter Chocolate: Creating a Market in China

This case describes the process of entering the Chinese market undertaken by Zotter Chocolate, an Austrian chocolate producer. There are several things that make this company stand out: it is a small, family-run entrepreneurial firm from Austria which makes a wide range of unconventional flavours of chocolate. It prides itself on being organic and fair trade, and has attracted a number of loyal customers and visitors to its “chocolate factory” in its headquarters located in Bergl, Austria. After successfully entering the German market, an “obvious” target for a firm from Austria, the founder, Josef Zotter, and his family considered where to go next in 2010. After comparing the US and Chinese chocolate markets, Zotter Chocolate selected China as its first major non-European market. The case introduces how Zotter sought out a local partner in Shanghai, and decided to enter the market with an “experience” offering in its first chocolate factory outside its home market, overseen by the founder's daughter Julia. Their innovations and learning process are also presented in this case. The case ends with Julia's key concerns about Zotter China's next step when she had to leave China for the headquarters of Zotter Chocolate in Austria in August 2017.