---
title: "China's FMCG E-commerce Sales Surge 47%"
description: "E-commerce channels contribute only 4.2% of China's total FMCG sales, below the global average. Kantar Worldpanel's latest Global E-commerce Report shows that in the 12 months to June 2016, global FMCG e-commerce sales reached $48 billion. In China, although e-commerce accounts for only 4.2% of total FMCG sales, slightly below the global average of 4.4%, growth in the past year was as high as 47%, and this trend is expected to continue. By 2025, China's FMCG e-commerce market is projected to reach $36 billion, capturing 15% market share."
author: "凯度消费者指数"
publisher: "New Distribution"
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published: "2016-10-24"
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---

# China's FMCG E-commerce Sales Surge 47%

> E-commerce channels contribute only 4.2% of China's total FMCG sales, below the global average. Kantar Worldpanel's latest Global E-commerce Report shows that in the 12 months to June 2016, global FMCG e-commerce sales reached $48 billion. In China, although e-commerce accounts for only 4.2% of total FMCG sales, slightly below the global average of 4.4%, growth in the past year was as high as 47%, and this trend is expected to continue. By 2025, China's FMCG e-commerce market is projected to reach $36 billion, capturing 15% market share.

**E-commerce channels contribute only 4.2% of China's total FMCG sales, below the global average.**
Kantar Worldpanel's latest Global E-commerce Report shows that in the 12 months to June 2016, global FMCG e-commerce sales reached $48 billion. **In China, although e-commerce accounts for only 4.2% of total FMCG sales, slightly below the global average of 4.4%, growth in the past year was as high as 47%, and this trend is expected to continue. By 2025, China's FMCG e-commerce market is projected to reach $36 billion, capturing 15% market share.**
This is the third consecutive year Kantar Worldpanel has published this global e-commerce report, which notes that e-commerce currently accounts for 4.4% of total market sales globally. Despite the global FMCG market being in a state of stagflation, with a growth rate of only 1.6% in the same period, e-commerce channels continue to grow. In China, for example, the 47% growth rate of FMCG e-commerce far exceeds the overall market growth of 3%.
Stéphane Roger, Global Shopper and Retail Director at Kantar, said: "The global FMCG market is clearly slowing down, and at the same time we see consumers' demand for convenience growing stronger, which e-commerce channels are well positioned to meet.
"Currently, the e-commerce channel for FMCG is still small, with only a quarter of the world's population shopping online, but it is growing rapidly. We expect that by 2025, e-commerce will account for 9% of the global market, reaching $150 billion. With the entry of e-commerce players like Amazon, the competitive landscape will undergo disruptive changes."
**By 2025, $150 billion worth of FMCG will be sold through e-commerce channels, and the share of e-commerce in total FMCG sales will rise from the current 4% to 9%.**
Stéphane added: "Online purchasing will have an impact on physical retail, so brick-and-mortar retailers must act quickly to establish their own e-commerce operations. Retailers that are first to launch e-commerce in each country generally gain higher market share – for example, leading retailers in France have achieved a 40% share in e-commerce, and in the UK, leading retailers have a share three times higher than followers. In this report, we also see how retailers and brands are building multi-channel strategies."
Key findings of the report include:
*** Global development is uneven**
The growth rate of e-commerce varies greatly across the globe, and this difference is difficult to explain by digitalization alone. In highly digitalized South Korea, e-commerce accounts for 16.6% of sales, ranking first globally, which may not be surprising. However, in the United States, only 1.4% of purchases occur online. **China is the fastest-growing major market in the last 12 months, with a growth rate of 47%, surpassed only by Denmark (80%) and Belgium (57%).**
Apart from the UK (6.9%) and France (5.3%), e-commerce's importance in other European countries is generally low. France has a unique FMCG e-commerce model where consumers order online but pick up in physical stores. E-commerce is very underdeveloped across Latin America, with only Argentina reaching a 1% market share.
*** Online shopping creates loyalty**
Once consumers start shopping online, they continue this behavior. **In China, such consumers spend 7.5% of their money online while reducing the frequency of physical store visits.**
*** Impulse buying needs encouragement**
Comparative studies of online shoppers in the UK, France, and China show that in the year after starting online shopping, UK and French consumers' online spending overall decreases (by 2.4% and 1.4% respectively), mainly due to a reduction in impulse purchases. Therefore, brands need to actively promote online impulse buying, for example by providing recommendations for complementary products. **In China, beauty products account for half of the FMCG online market, and most products purchased online are premium brands. As a result, after one year of online shopping, Chinese consumers' average spending increases by 8.1%.**
*** Online baskets are typically larger**
Consumers spend more per transaction on e-commerce channels than offline, so winning these consumers brings more profit. **In China, the average transaction value on e-commerce is $20, compared to $15 in physical stores.**
*** Once brands are on the online shopping list, they are likely to be chosen again**
Kantar Worldpanel's research shows that globally, 55% of online shoppers use their previous shopping list for their next purchase. Brands need to focus on getting their products onto consumers' shopping lists.
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