Runners seen at the starting point of the Bimbo Global Race 2024 at Beijing Olympic Park on Sept 28. [CHINA DAILY]
Grupo Bimbo, a Mexican multinational food company, is deepening its footprint in China with significant investments and strategic initiatives aimed at capitalizing on the country's massive market potential, signaling optimism about the country's long-term development.
Kelly Zhang, general manager of Bimbo China, emphasized that the company has experienced a marked improvement in profitability in the past year and is confident that its efforts in China will continue to bear fruit.
"We made a big improvement in profitability versus a year ago. The contribution to Grupo Bimbo globally is solid," Zhang noted. Following its entry into the Chinese mainland in 2006, Bimbo owns 10 factories across the country and invested over $70 million in China in 2023 and 2024.
Zhang pointed out that despite challenges, China remains an attractive market. "With 1.4 billion people and a growing demand for bakery products, there's still a lot of room for growth. Per capita bakery consumption in China is much smaller compared to Japan or the United States, which means there's huge potential here," she said.
Bimbo expects to continue its positive trajectory, forecasting double-digit growth in sales and a solid profit increase for 2025. "Our share in global Bimbo will become bigger," Zhang added.
Data from the National Bureau of Statistics showed that the consumer confidence index for China has remained below 100 during the past few years, pointing to persisting pressures from lackluster consumer demand. The consumer confidence index ranges from zero to 200 with 100 representing a neutral stance.
While China's broader economy is still facing challenges posed by still-weak consumer confidence and uncertainty surrounding global economic conditions, Zhang said she believes the country's intensified efforts to stimulate consumption will help fuel growth and stabilize the overall economy. "The government is taking proactive steps to support consumption."
Looking ahead, Zhang said she believes the upcoming two sessions will focus on driving consumer confidence and demand. Two sessions refer to the annual meetings of China's top legislative and political advisory bodies.
Kelly Zhang, general manager of Bimbo China.[Photo provided to chinadaily.com.cn]
"If the government continues with measures like creating job opportunities, consumption will increase. When people feel secure, they tend to spend more."
Bimbo's strategy in China is centered on expansion — both geographically and product-wise. The company is expanding its reach into central, southern and western China, where opportunities remain untapped. "We're looking to expand to more regions in China. For example, we've recently formed a strategic partnership with Jingxitong, a platform within JD, to enhance our product distribution to national grocery stores," Zhang revealed.
In terms of product innovation, Bimbo is entering the booming snack category, having launched Rusk, a crispy bread-based snack, in late 2024. "The snack market in China is massive, with a market size of over 1 trillion yuan ($137.65 billion). And the product is a great fit for young people who snack frequently," Zhang noted. Bimbo is also tapping into the growing demand for healthier options, with products like zero-sugar, high-fiber bread and whole wheat options under its MANKATTAN brand.
Zhang stressed the importance of brand awareness, citing the success of the company's Bimbo Global Race event, which attracted over 2,000 runners on-site and 200,000 online participants last year. "It's not just about promoting the brand — it's about contributing to society through meaningful events," Zhang explained. The company is also planning social campaigns to advocate for healthy eating and life choices, leveraging influencers to build greater consumer awareness.
Bimbo's investment in local innovation is another key aspect of its strategy in China. Zhang highlighted that the company's research and development team in China is crucial to adapting products to local tastes. The MANKATTAN Beijing was officially accredited as "Foreign-Invested R&D Center" by the Beijing Municipal Science & Technology Commission and Administrative Commission of Zhongguancun Science Park recently. "Our R&D center is close to local consumers, and we can develop products that suit their needs quickly. For example, Rusk was developed in China, and if successful, we may share it with our global team," she said.
Looking to the future, Zhang expressed confidence in China's long-term growth prospects. "China grew dramatically during the past decades. It's not an easy journey," she said. "As long as there is a clear direction, the Chinese government can put all the resources or energy together and create miracles."
