Click to read the original article for details. Mars senior management hopes to accelerate digital transformation through the return of Clarence Mak. The news of the China region leadership change has put Mars, the producer of Snickers, M&M's, and Dove chocolates, in the spotlight. On July 25, in response to online reports about the adjustment of Mars China's president, a Mars China spokesperson told Beijing Business Today that due to the upcoming retirement of current China president Bo Yian, Clarence Mak, who previously served as General Manager of Mars Chocolate China and Vice President of Marketing for Wrigley China, will assume the role of new China president. Industry insiders believe that Mars is going through a critical period of digital transformation, and the pressure brought by this change is significant, highlighting Mars' anxiety to accelerate its transformation. New President to Take Office A Mars spokesperson said in a reply to Beijing Business Today that before the integration of Wrigley and Mars Chocolate divisions, Clarence Mak had served as General Manager of Mars Chocolate China and Vice President of Marketing for Wrigley China, accumulating rich and deep insights into the local market and consumer preferences. This will help Mars Wrigley innovate more localized products. According to public information, Clarence Mak previously served as Marketing Director for PepsiCo China and Brand Manager at Procter & Gamble. He joined Mars in 2011. Due to the outstanding performance of Dove and Snickers in China's e-commerce market, in 2016, Mak was promoted to Chief Customer Officer of Mars Food and Global E-commerce Head for Mars. That year, Mars leveraged a strategic partnership with JD.com to achieve temperature-controlled warehousing and last-mile cold chain delivery, and expanded Mars products into rural markets. Additionally, Mak introduced the British chocolate brand Maltesers to China, opened Asia's first M&M'S chocolate flagship store, and established Mars Global Food Safety Center in China. Regarding his return to China, Mak, who will take office on August 1, expressed his delight at the opportunity to work in China again, stating that this is not a return to familiar ground but a fresh start. He hopes to work with Mars colleagues to create new achievements for Mars China, Mars Wrigley globally, and Mars Inc., leading transformation and accelerating growth. It is noteworthy that Mars is currently in a critical period of transitioning to digital marketing. In May 2018, Mars President Grant F. Reid stated at J.P. Morgan's 14th Annual Global China Summit that Mars should adopt a new China strategy of moving from "being present" to "being relevant." "China is changing rapidly, and it is not enough to just 'be present' in China. To achieve 'presence,' we must not simply launch global products in China, but tailor products that Chinese consumers love." Xu Xiongjun, a well-known strategic positioning expert and founder of Nine De Consulting, believes that during this critical transformation period, the senior management hopes to accelerate digital transformation through the return of Clarence Mak. Shift in Sales Approach In fact, to align with Grant F. Reid's new strategy, Mars has made a series of adjustments in China. The core idea of Mars China's new strategy is that, with the rapid development of consumption upgrade, new retail, and free trade in China in recent years, Mars, based on the principles of quality, responsibility, reciprocity, efficiency, and autonomy, is driving product innovation digitally, striving to create more moments for Chinese consumers and pets with better and safer food. Currently, China is Mars' second-largest market and plays a pivotal role in its global strategy. However, compared to three years ago, the Chinese market has undergone profound changes. In terms of products, consumers are more health-conscious, and chocolates and candies with high sugar content inevitably face challenges. In terms of channels, more new business formats are rapidly emerging, such as new retail and social retail. The development of offline channels has also presented a new situation: the proportion of traditional channel stores is declining, shifting year by year to modern channels (including hypermarkets, large supermarkets, small supermarkets, and convenience stores). In response to local market changes, Mars has launched a digital transformation strategy in China. In 2018, Mars established the China Digital Innovation Center to drive change through digital innovation. Mars was among the first companies to join Alibaba's Digital Factory pilot program. Additionally, Mars brand Maltesers participated in Alibaba's Uni Marketing full-domain marketing, using data to achieve integration of brand and effect in positioning, audience, and creativity. Mars also leveraged Tencent's platform and social advantages to create content that matches target audience preferences and achieve precise and effective delivery. In 2018, Mars and JD.com cooperated to build a collaborative warehouse in Guangzhou, forming a multi-level channel system. "To better fulfill our commitment to consumers, Mars continuously strengthens marketing in traditional retail, e-commerce, and new retail, and explores big data to achieve more effective reach," a Mars spokesperson said. Creating Internet-famous Products Digital marketing transformation cannot be separated from product support. According to Euromonitor International data, in 2016, Mars' Dove still topped the Chinese chocolate market brand rankings, but its market share significantly declined, and Dove has been losing share year by year since 2013. Its star products M&M's and Snickers also declined, collectively losing 0.3% market share in China. Compared to competitors, Mars is clearly lagging in product updates. In recent years, Ferrero has launched gift boxes and made targeted acquisitions like Kjeldsens cookies; Hershey has introduced chocolates in four flavors (sweet, sour, bitter, spicy); and Mondelez has launched multiple flavors of Oreo, all becoming internet-famous products that attract young consumers. In response, Mars has also tried to change starting with Snickers in the Chinese market. Besides adding flavors, Mars recently launched a bucket-packaged Snickers with cool white chocolate series on Tmall, aiming to occupy the snack-sharing consumption scenario of young consumers through online trials. The three flavors—cool lemon, cool peach, and cool coconut—are now available in limited quantities at Walmart, RT-Mart, Lawson stores nationwide, and e-commerce platforms. This time, Snickers launched a canned new product, not only attracting consumer attention with novel packaging but also making the classic product more innovative and youthful. A Beijing Business Today reporter logged onto Tmall and found that Snickers has changed its usual bar packaging and family bucket packaging, and the classic color scheme has left a deep impression on consumers. Netizens even commented that this Snickers has the potential to become a new internet-famous food. It is worth noting that Mars is not only digitally transforming its sales but also adjusting its production side. Mars is actively innovating and optimizing product flavors and packaging, introducing new businesses like healthy snack KIND and Mars Food. In 2015, Mars established the Mars Global Food Safety Center in Beijing, dedicated to promoting food safety and effective supply chain management. In China, Mars has initiated and cultivated a high-oleic peanut planting project for over a decade. "Consumers are not not eating chocolate, but eating selectively. Whichever company's new products are healthier and better match consumer taste preferences will be welcomed. Therefore, the competition in chocolate and candy is ultimately product competition," said Zhu Danpeng, a Chinese food industry analyst. Source: Beijing Business Today