Krispy Kreme Doughnut Corp international Asia-Pacific marketing manager Carlo Fajardo said there was a growing demand for the brand not just in Malaysia but in Asia as well.

“We’re currently in talks with our partner in Shanghai regarding logistics so we’ll hopefully be in China in September,” he said in a recent phone interview with The Edge Financial Daily.

Fajardo said currently, there are 525 Krispy Kreme stores in 17 countries, with the top-selling markets being the US, Australia, UK, Mexico and Japan. “In Japan, the hot light is perpetually on!” said Fajardo, referring to the brand’s trademark “Hot Doughnuts Now” neon signage that is illuminated whenever a new batch of original glazed doughnuts is done.

Berjaya Krispy Kreme Doughnuts Sdn Bhd, the local franchise holder of the American-based franchise, will open the first store on April 27 in Berjaya Times Square, followed by another in Mid Valley Megamall by mid-year. Despite the fact that it is opening in a downturn, the company is upbeat.

“Timing is not the most important factor because the brand has been long-awaited by consumers,” said Alex Chong, general manager of Berjaya Krispy Kreme Doughnuts. Chong said the excitement was reflected in online speculation about the franchise’s arrival in Malaysia since early last year.

Asked how many local stores were in the pipeline, Chong said, “We will open one store at a time depending on location.”

The 70% subsidiary of Berjaya Corp Bhd secured rights from Krispy Kreme Doughnut Corp to develop and operate stores locally in August last year.

Fajardo said Krispy Kreme would be banking on its product quality to set itself apart from competitors like J.CO, Big Apple and Dunkin’ Donuts that have already made their presence felt. The company would be introducing new products from time to time, including limited editions of locally inspired flavours during promotional periods, he said.

Besides product quality and innovation, Krispe Kreme’s three-pronged branding strategy extends to its store environments as well. “We want customers to not just enjoy the doughnuts but have sweet memories in the stores too,” said Fajardo.

Excellent real estate, or location, is the third component, Fajardo said, adding that the store had to be big enough to incorporate the famed production line where customers can view the entire doughnut-making process from proofing, frying and glazing to cooling. “We’re banking on our local partners’ expertise to understand the local market,” he said.

Fajardo said Krispy Kreme had partnered with its global creative agency BBDO Worldwide to build the brand locally via print and radio advertisements and digitally.

“This year, there would be four major global marketing initiatives aimed at engaging customers by hyping up the in-store experience,” he said. They include Halloween and Christmas in-store promotions, and Krispy Kreme’s international 72nd anniversary in the middle of this year.

This article appeared on the Media & Advertising page, The Edge Financial Daily, April 21, 2009.