Multi-format is developing in China
The retail channel is developing fast towards multi-format model as shopping has been even more diverse and dynamic.
Kantar Worldpanel’s latest figures covering 12 weeks ending 10 July in China show that the growth of the total FMCG market stands at 5.6% when compared to the same time last year.
Sun-Art group has been generously injecting resources to its online platform “Fei Niu” while leading a less aggressive plan on new store openings, as only 4 new stores have opened since the beginning of the year 2015. The latest figure shows that the group is stagnant in growing market position as its share is flat compared to a year ago at 7.1% nationally.
Although Vanguard group is still going through “post merge bumps” including some recent strikes in Tesco stores that impacted the business, the group continues to perform strongly, gaining 6.6% market share to achieve its highest growth rate % year-on-year. The group is now pioneering a multi-format model in China, operating under different brands such as Vanguard, Soguo, Ole, Vivi and Tesco Express. With the recent launch of its online platform “ewj”, the group now has a presence in most key channels.
Wu-Mart continues its double-digit (10.3%) growth in spending, reaching 1.7% of market share up 0.1% from a year ago. The retail group has developed its multi-format strategy by adding first membership store “Shang Jia” to its portfolio — this directly competes with Walmart’s Sam’s Club, which owns 12 membership stores in China — and the latest numbers show that it is growing fast at 28.9% in spending.
The retail channel is developing fast towards a multi-format model as the need and purpose of shopping becomes even more diverse and dynamic. The market only favours those who can satisfy those needs of shoppers.