Local retailers and e-commerce thrived during CNY
Local retailers and e-commerce thrived during Chinese New Year
Kantar Worldpanel’s latest figures for 12 weeks ending 23rdFebruary 2018 show consumer spending on FMCG in China saw a significant uplift compared to last period (i.e.12 weeks ending 26st January), thanks to an increased spending on Chinese New Year. Modern trade remains the biggest channel of shopper’s choice during holidays, contributing with half of the total sales. Gift channel came the second one, with 20.6% share of the total market. In the meantime, small channels such as WeChat and overseas purchase grew at 59.8% and 17.1% respectively. Although each of the channels only accounts for less than 2% of total channel spend, the trend reflects the changing lifestyle of Chinese shoppers during the traditional holiday season.
Local retailers better captured the CNY opportunities to achieve growth, with Yonghui still leading the pack. With its impressive sales growth of 21.7% compared to the same period last year, Yonghui has successfully attracted one in ten urban families to shop in their stores in the past 12 weeks. Other local retailers that performed well was Better Life (Bubugao), which grew by 45.2%. After announcing its partnership with Tencent and JD, Better Life announced a plan to connect its 200 offline stores to JD Daojiao (the O2O platform of JD.com) to better serve convenience conscious customers.
Ecommerce channel grew by 29.3% in the latest 12 months. Among key online retailers, JD led the growth and achieved 12.6% of share within total ecommerce. As shopper needs in the holidays continue to increase, especially in terms of quality and convenience, more new retail format such as Hema Fresh (under Alibaba) and 7Fresh (under JD.com) thrived during the holidays thanks to their amazing fresh foods range and in-store catering service.