Kantar Worldpanel - www.kantarworldpanel.com

Sun-Art sees slowdown; Yonghui will soon hit the top 4

22/09/2016

Kantar Worldpanel’s latest figures 12 weeks ending 12th Aug 2016 in China shows consumer spending on FMCG grew by 3.8% compared to the same period last year, Modern trade grew by 1.4% while eCommerce grew by 60.1% for the same time period.

Modern trade growth was led by Sun-Art group and Yonghui group with 6.4% and 32.6% spending growth respectively for the 12 weeks ending 12th Aug 2016. Starting very strong in 2016, Sun-Art group’s growth rate has slowed down during the latest weeks. Sun-Art’s penetration kept growing which is quite unique as the total hypermarket channel is struggling to maintain shoppers. RT-Mart’s has not closed any existing stores so their challenge has been to maintain and improve per store sales performance, either through increased shopping frequency or boosting their spending per trip. 

Yonghui kept double digital growth during 2016 with its aggressive expansion plan growing the shopper base by over 15%. Also Yonghui is the only retailer among the top 5 who managed to grow shopping frequency which can be attributed to its well-developed multi-format strategy. Moreover, Yonghui’s FMCG trip spending also grew very fast at 8.3% during the latest 12 weeks ending 12th Aug 2016 compared to same time last year. However, Younghui consumer spending is currently 78 RMB per trip on FMCG products, compared to Wal-Mart’s 95.7 RMB per trip so there is a lot more potential for Yonghui to grow their shopper’s basket size and upgrade their product choice.

Kantar Worldpanel shows that retailers with a strong performing fresh food segment are also seeing growth in other FMCG segments, indicate that a well developed fresh food segment can helps drive traffic and shopping frequency. Younghu’s fresh food supermarket is a successful example because it is meets shoppers’ need for quality fresh food and provides this in a modern shopping environment . Not only modern trade retailers are focusing more on fresh food. eCommerce retailers are also keen to catch this opportunity. JD is working with Yonghui on the fresh food O2O segment, Tmall and YHD are developing their own O2O platform, vertical platform like Fruitday and Yiguo are aggressively expanding their territory turning this market into a fiercely competitive battlefield.

For more information, please click Grocery Dataviz.


Sun-Art sees slowdown; Yonghui will soon hit the top 4

Sun-Art sees slowdown; Yonghui will soon hit the top 4

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Jason Yu
General Manager in China

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