China FMCG increased by 3.1% in the latest 12 weeks
In the 12 weeks to Oct. 7th 2022, Kantar Worldpanel China reported that fast-moving consumer goods (FMCG) in urban China increased by 3.1% in value over same period last year. The East region kept driving the national growth, with sales up 5.2% year on year. Consumers maintained their stockpiling behavior as COVID outbreaks continued, and those in the East region are spending the most for each trip.
The growth of modern trade channels (including hypermarkets, supermarkets, and convenience stores) stagnated yet diverged. Hypermarkets and large supermarkets fell by 4.1% and 4.5% respectively in the latest 12 weeks from a year ago, while small supermarkets and convenience stores rose by 12.5% and 9.0% respectively, both driven by growing baskets and an expanding consumer base.
Sun Art Group held an 8.1% market share in last 12 weeks and maintained its leading position, yet lost 0.5pts in their value share compared to last year. In the latest trading report, the group reported a 2.2% drop in revenue and 0.2% drop in same store sales, as well as indication of the early success of its store transformation. Yonghui Group followed in the second place, with 5.6% market share. Thanks to the expansion of Sam’s Club, Wal-Mart Group gained 0.2pts share year on year and became the third largest retailer, holding 5.3% share of the national market in last 12 weeks.
E-commerce channel grew by 7.5% versus the same period last year, driven by consumers in upper-tier cities accelerating their demand for online shopping as the lockdown impact created more needs for pantry loading. In the past 12 weeks, 71.6% of Chinese urban households purchased FMCG through e-commerce platforms.
Source: Kantar Worldpanel China
For the core players, Alibaba Group leads the market yet lost 2.8pts market share to 37.1% over the same time last year. JD Group gained 0.3pts share year-on-year, rising to 15.9%, with its consumer base growing as well. The expansion of Pinduoduo appeared to retrench, and it lost 1.3pts market share, falling to 9.7%. Meanwhile, the interest e-commerce platforms are developing rapidly by attracting new users and we are seeing the penetration of Douyin catching up with that of JD. There were 18.1% of urban Chinese households who placed orders for FMCG on Douyin in the past 12 weeks, more than double the number from last year. Both Douyin and Kuaishou are expanding their market shares rapidly year on year.
For the D11 shopping festival this year, platforms focused more on the connections with consumers rather than only focusing on GMV (Gross Merchandise Value). Alibaba reported there were more than 300 million users who watched Taobao livestreaming since the D11 pre-sell, showing the great influence of D11 shopping festival has been retained. The “China-chic” trend remained strong across different sectors. In addition, O2O platforms also actively participated in Singles’ Day promotions, fueling growth to the brick-and-mortar stores.
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