FMCG Got off to a Good Start in 2019
Kantar Worldpanel’s latest figures for 12 weeks ending 25st January 2019 reveals that consumer spending on FMCG in China made a good start with a value growth rate of 7.7% compared with the same period in previous year, giving a positive sign as the market is running up to Chinese New Year. Ecommerce maintained robust development after the Singles’ Day shopping festival, while modern trade also showed signs of recovery with growth of 4.7%, with the festive spirit before CNY.
Amongst the top 5 modern trade retailers, Yonghui outshone its peers and achieved a fast growth rate of 18.2%, driven by enlarging buyer base and encouraging bigger shopping basket. In December 2018, Yonghui opened its Mini Concept store in Fuzhou to tap into the opportunities of fresh produce and other basic staples stocked usually by community stores, featuring partnership with JD to deliver to homes within 30 minutes. The new store format is expected to expand to more cities in 2019.
Ecommerce players remained aggressive to showcase their strength in merchandise and O2O delivery to fulfill shoppers’ needs to stock up before CNY. In the past 12 weeks, 57% of the urban Chinese families bought FMCG online. Noteworthy, lower tiers cities showed a great improvement in Ecommerce penetration from 45% to 54% thanks to the continuous education by key Ecommerce giants. The latest race shows Alibaba group progressed faster in winning new shoppers.