The encyclopedia · Marketing & Brand · Marketing decision · 2022
Orion sold cheaper Choco Pies in China — and blamed the customer who noticed
A netizen's comparison showed Orion snacks cost more in China than Korea. The company denied it, but the damage was done — and sales never recovered.
Orion Corporation · Orion China · 2022-03-28
What happened
In late March 2022, a Chinese netizen posted a detailed comparison showing that Orion — the South Korean confectionery company behind Choco Pie, and market leader in China's pie-cake snack category — was charging Chinese consumers roughly 35% more than Korean consumers for the same products, while using cheaper ingredients in its China-market versions. The post spread rapidly across Weibo and Douyin under the hashtag #好丽友双标 (#OrionDoubleStandards).
Orion China responded with a statement on 28 March 2022, denying the allegations. It claimed the company was a locally incorporated entity that sourced ingredients from China, and that any differences in formulation reflected local preferences and regulations, not cost-cutting at Chinese consumers' expense. The denial only inflamed the backlash: consumers who had grown up on Choco Pies felt the brand was treating them as second-class customers.
The timing amplified the damage. The controversy broke just weeks after the Russian invasion of Ukraine had driven up global commodity prices, and Chinese consumers were already sensitive to price increases. Orion's Korean headquarters added to the confusion by acknowledging that China-market products did use different recipes — directly contradicting its Chinese subsidiary's denials.
Sales of Orion products in China dropped sharply in the weeks after the controversy. The company lost shelf space in convenience stores and supermarkets, and the brand — once one of the most trusted foreign food brands in China — became a shorthand for corporate hypocrisy in Chinese social-media discourse. By mid-2023, Orion's China revenues had still not returned to pre-controversy levels, though the company remained profitable in the market.
Why it happened
- Orion maintained different ingredient standards and pricing for China without a credible explanation. When consumers noticed, the company tried to gaslight them rather than own the difference.
- The Chinese subsidiary's denial and the Korean headquarters' admission contradicted each other, making the company look dishonest.
- A beloved brand from childhood created stronger outrage: consumers who grew up on Choco Pie felt personally betrayed by a brand they trusted for decades.
- The timing — just as commodity inflation was pushing up everyday costs — turned a product complaint into a broader statement about how foreign brands treat Chinese consumers.
The lesson
When a local subsidiary denies what the parent company admits, the consumer believes the admission. Agree on the story before speaking — or tell the truth the first time.
Aftermath
Orion China issued multiple clarifications and began emphasising local manufacturing and sourcing to rebuild trust, but the episode permanently damaged the brand's reputation among its core millennial and Gen Z consumer base in China.
Sources
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