---
title: "FMCG Sales Growth in Q3 Is Decent—Are You Dragging Down the Average?"
description: "Time is running out to hit your KPIs. According to the latest data from Kantar Worldpanel, FMCG sales in Q3 2016 grew 3.6% year-on-year, down from 4.6% in Q2, but still the second-highest growth since Q2 2015. Growth in smaller cities outpaced that in provincial capitals and mega-cities, with county-level cities up 4.7% and county towns up 4.2%."
author: "凯度消费者指数"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-10-31"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/fmcg-sales-growth-in-q3-is-decentare-you-dragging-down-the-average-f5615762/"
markdown: "https://xinjignxiao.com/en/articles/fmcg-sales-growth-in-q3-is-decentare-you-dragging-down-the-average-f5615762.md"
original_source: "https://mp.weixin.qq.com/s/QC_tOHSYp7j07papd0oHAQ"
translation: "https://xinjignxiao.com/zh/articles/%E5%BF%AB%E6%B6%88%E5%93%81%E9%94%80%E5%94%AE%E7%AC%AC%E4%B8%89%E5%AD%A3%E5%BA%A6%E5%A2%9E%E9%80%9F%E5%B0%9A%E5%8F%AF-%E4%BD%A0%E6%8B%89%E4%BD%8E%E5%B9%B3%E5%9D%87%E6%95%B0%E4%BA%86%E5%90%97-f5615762.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/fmcg-sales-growth-in-q3-is-decentare-you-dragging-down-the-average-f5615762/"
usage_policy: "https://xinjignxiao.com/ai-policy.txt"
---

# FMCG Sales Growth in Q3 Is Decent—Are You Dragging Down the Average?

> Time is running out to hit your KPIs. According to the latest data from Kantar Worldpanel, FMCG sales in Q3 2016 grew 3.6% year-on-year, down from 4.6% in Q2, but still the second-highest growth since Q2 2015. Growth in smaller cities outpaced that in provincial capitals and mega-cities, with county-level cities up 4.7% and county towns up 4.2%.

**Time is running out to hit your KPIs**
According to the latest data from Kantar Worldpanel, **FMCG sales in Q3 2016 grew 3.6% year-on-year, down from 4.6% in Q2, but still the second-highest growth since Q2 2015**.

**City-level analysis**
By city tier, growth in small and medium cities (prefecture-level cities, county-level cities, and county towns) was relatively faster than in provincial capitals and mega-cities (Beijing/Shanghai/Guangzhou/Chengdu). Specifically, FMCG sales in **county-level cities grew 4.7% year-on-year, and in county towns by 4.2%**.

Hypermarkets in large cities face particularly severe challenges, with a 0.6% year-on-year decline in Q3. However, this retail channel still maintains relatively fast growth in small and medium cities, with sales up 3.1%. **As e-commerce remains relatively underdeveloped in small and medium cities, physical retail models still have significant growth potential**. Kantar Worldpanel data shows that Auchan Retail Group's hypermarket channel grew 28% in county-level cities and county towns, while Walmart Group's hypermarket channel grew 53% in these two city tiers.

**Geographic analysis**
By region, the Western and Northern regions grew faster than the overall market, with growth rates of 5.4% and 5.0%, respectively. With improved infrastructure, higher disposable income, and new stores from large retailers such as Walmart, Yonghui, and China Resources Vanguard, **the Western retail market began growing much faster than other regions in the second half of 2015**. After two years of relatively flat development, the Northern region saw a recovery in growth in the latest quarter, driven by Auchan Retail.

**Chinese retailers continue to gain market share**
The latest Kantar Worldpanel report shows that **in the most recent quarter, international retailers' market share fell from 12.1% last year to 11.6%**. In mid-October, Walmart increased its stake in e-commerce giant JD.com to 10.8% and opened a global flagship store. These moves reflect **Walmart's accelerated omnichannel strategy**. However, under pressure from Auchan Retail and Yonghui, Walmart's physical retail market share in Q3 slightly declined from 4.8% to 4.7% year-on-year.

Another international retail giant, Carrefour, is shifting focus to small-format stores, hoping to better serve neighborhood communities. Carrefour plans to develop 40 **Easy Carrefour convenience stores** by the end of 2016, featuring high-quality products and private labels. Kantar Worldpanel data shows that in Q3, convenience stores in first- and second-tier markets grew 3.9% year-on-year, while the overall modern trade grew only 1.8%.

**E-commerce is conquering territory**
The latest Kantar Worldpanel data shows that e-commerce channel grew 63% year-on-year in Q3. Both JD.com and Tmall saw significant growth in customer base for FMCG. With the annual shopping festival Double 11 approaching, both platforms expect to attract more consumers and push penetration to new highs.

The rapidly growing e-commerce channel does have a considerable impact on physical retail, but it is not the only factor causing physical retail's decline. **Kantar Worldpanel research found that in 2015, hypermarket FMCG sales in provincial cities declined 5% year-on-year. Analyzing all lost sales in hypermarkets, only 15% was directly eroded by e-commerce, while 85% was influenced by other consumption channels, leading consumers to reduce spending in hypermarkets**.

Today's Chinese consumers want to satisfy their purchase needs anytime, anywhere, and in any way. Therefore, retailers must analyze how to interact with consumers at different touchpoints, and achieve business growth through digital store transformation, technological innovation, and insights into consumer shopping paths and missions.

**Source: Kantar (ID: KantarGroup)**
-END-
The best learning platform for FMCG distributors in China
Focusing on providing professional, practical, and actionable tutorials for enterprises and distributors
Committed to helping Chinese FMCG distributors grow rapidly
**The most professional and practical knowledge base in the FMCG industry**
Reply with the red number below to get the corresponding content
Reply with number 1 to view the complete knowledge base
| **001** Excellent article selection | **002** Distributor market operations | **003** Terminal visit management | **004** Sales supervisor skills | **005** Sales improvement techniques | **006** Channel expansion | **007** Managing distributors | **008** Distributor development | **009** Distributor internal operations management | **010** Team management | **011** Efficient distribution techniques | **012** Sales manager's skills | **013** KA operation methods and strategies | **014** First lesson for new salespeople | **015** Internet, brands | **016** Distributor B2B transformation |
[Long press QR code to follow]


---

## Copyright and AI use

This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL.

Contact: zhaobo258@gmail.com · +86 158 5481 7671