Fast-moving consumer goods in China driven by local retailers
Kantar Worldpanel reports 5.6 percent value growth for the FMCG market for the latest 52 weeks up to June 13, 2014, compared to the same period a year ago. Lower-tier cities are still the key driver for growth with counties seeing 8.9 percent year-on-year.
In second quarter of 2014, the year-on-year growth slowed to 4.7 percent, a significant drop from the 15 percent growth witnessed in second quarter of 2011. One reason for the deceleration in growth is the slowdown in premium products across many categories as a result of reduced CPI level and decline in the rise of disposable income, according to the report.
International retailers continue to lose share to local businesses in this market, with multinational chains posting 20.4 percent share in terms of sales value in the second quarter of 2014, a 1.4 point fall compared to last year.
Local retailers in the north saw stronger growth over the last quarter in terms of market share, reaching 84.8 percent, a 2.6 points gain compared to a year ago. ■