GROWTH SLOWS BUT CHINESE BRANDS GAIN AT HOME
According to Kantar Worldpanel, the rise in FMCG consumption across Asian markets is slowing. However, in China, 70 percent of local FMCG players are growing their sales, compared with 50 percent of the global brands operating in the market. Local brands account for around 70 percent of the value of the FMCG market, and are driving 82 percent of its growth. In terms of penetration, 44 percent of Chinese brands increased their shopper base in the last year, compared to 33 percent of global brands operating in China.
There are five ‘power levers’ of growth that all the dominant Chinese players featured in the report were found to have in common. They are:
- They are masters of metamorphosis: Shifting from manufacturing-led to brand-led, evolving along with consumers and expanding beyond their country of origin
- They have a purpose, and play an active role in society: Respecting and caring for consumers, helping to improve lives and democratizing categories
- World-class innovation with a local twist: Recognizing that consumers want to move with the times, but without sacrificing traditions
- They digitize and humanize: Applying digital technologies both to create and sell products and to connect with consumers on an emotional level
- Data-led intuition: An instinctive understanding of what will work, combined with ongoing market research that provides unbiased, actionable consumer insights.