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NEWS2 November 2015

Chinese FMCG spend growth down to 2.7%

Asia Pacific FMCG News

CHINA — Spending in FMCG grew by 4.7% for the year to September 2015, although there was a significant drop on a quarterly basis according to Kantar Worldpanel data.

Quarterly growth was down to 2.7% (compared with 6.6% in the same quarter the previous year), the lowest growth rate for three years.

In China’s FMCG retail market, international retailers are struggling to turnaround their share. They make up 13.5% in Q3 2015, a drop of 1.0% from 2014.

International retailers not only lost ground in their stronghold of tier 1 & 2 cities, where they have significant presence, but also failed to add share in developing lower tier cities. A constant decrease in penetration is the main reason for the market share loss of international retailers, down to 29.6% in Q3 2015, from the same quarter two years ago.

However, local retailers are doing better. Sun-Art Group gained market share to reach 7.5%, up from 6.9% in Q3 2014.

Online spending rose 37% for the year to 11th September 2015, with gains in penetration and purchasing frequency.