Conclusion first: Currently, Chinese FMCG brands going global are still in the blue ocean stage, or early stage, and this stage has not yet become a period of rapid development, with enterprises generally lacking awareness. Therefore, from a trend perspective, the opportunities are significant. As the China FMCG Shanghai Conference approaches on August 21, I write this article as an introduction to the 'FMCG Going Global Forum' in Shanghai in August.

The Severely 'Involutionary' FMCG Supply Chain On July 28, at the Dalian Donggang Seaside Plaza, on a lavish offline stage, there were no ordinary spectators; a Kuaishou platform streamer was live-streaming product sales. I watched for a while and found that they were selling beverages—a probiotic drink at 240 yuan per box, first release. Soon, under the streamer's 'left-right punch' tactics, the product was listed at 99 yuan for three boxes, and 10,000 orders—that is, 30,000 boxes—sold out in seconds! The show continued, and another product with 20,000 orders was snapped up with the same passion. I searched for this streamer online: 94 million followers, with 40% aged over 50, mainly concentrated in lower-tier markets in Hebei, Shanxi, Shandong, and other regions. In less than 20 minutes, this product reached specific user profiles in that region with very precise targeting. This is a microcosm of the evolution of Chinese consumer goods channels: marketing and distribution channels are continuously iterating, segmenting, and evolving, and many traditional brands 'not understanding' has become the norm. Your most familiar marketing methods and channels have naturally become 'involutionary.' Sharing this case, I want to say that the domestic FMCG supply chain has reached a state of highly homogeneous resource competition. Many FMCG brands in China have mostly entered the stage of 'diminishing marginal output,' or even 'negative marginal returns'—if you don't participate, sales drop; if you participate, profits suffer. At this point, why not consider overseas market opportunities from a different angle?

Lagos Island Market, one of Nigeria's well-known comprehensive wholesale markets

Over the past four years, I have spent more than half my time based in Africa, focusing on the FMCG market frontline, helping multiple brands establish local sales channels. At this stage, the market penetration rate of traditional Chinese FMCG brands across Africa is less than 1%, appearing only on the shelves of local Chinese supermarkets. In contrast, in digital 3C, Chinese brands hold over 70% market share. Food and beverages account for half of African household spending! Clearly, the market is not small enough; rather, our FMCG brands really lack enthusiasm for overseas (African) markets. Perhaps the domestic market is not yet competitive enough, and the willingness to go global is not strong enough. At least from the results, the main market for well-known brands is still domestic.

Where are the opportunities in the African market? From the perspective of capacity and opportunity, the African market is a very good opportunity for Chinese FMCG brands. Let's first look at a classic case of an Indonesian brand going global in Africa: In Africa, there were no hanging noodles on the market; the main fast noodle product was spaghetti, because African consumers' eating habits were formed by a combination of Westernization and local customs gradually shaped during the colonial era. This situation continued until 1988, when the well-known Indonesian brand Indomie exported to Nigeria through agents. In 1995, it established a local factory, localized the product, and it became popular across Africa, almost becoming synonymous with 'instant noodles.' Many locals use 'indomie' to replace the word 'noodle,' and it has become one of Africa's main staple food categories. The brand currently holds nearly 70% share of the entire instant noodle market in Africa. It achieved market development from scratch and the super perception of brand-as-category. In our local warehouse in Lagos, Nigeria, the product's inventory turnover cycle is only 2 days, showing its market momentum. Brands like this are what we call international brands: already well-known in their home country, they quickly opened new markets or captured significant share from traditional competitors in overseas countries, becoming well-known brands in the minds of overseas consumers. From a market structure perspective, Africa's FMCG industry is in an early growth stage of 'low brand concentration, low channel concentration, high consumption frequency,' with great potential for 'wild growth.' In Africa (sub-Saharan black Africa), the FMCG market structure is as follows:

Household consumption share: FMCG accounts for 55% of household consumption, the highest among all consumer goods.

Share of international FMCG brands vs. local brands: International FMCG brands hold about 80% market share in Africa, while local brands hold about 20%, with Indian-origin factory brands having a relatively high proportion.

Sales channel share: 2C e-commerce accounts for 3%; modern supermarkets account for 8%; traditional mom-and-pop stores account for about 90%.

Chinese FMCG going global in Africa: Chinese going-global brands hold about 1% overall market share. Africa is currently a stage for entrepreneurs in FMCG, with brands presented as locally registered new brands, mainly concentrated in beverages, paper products, daily chemicals, seasonings, and leisure foods. For example:

  • Cway brand water beverages: after launching桶装水 in Nigeria, they hold over 70% share, and bottled water market share has risen to third, behind only local brands of Coca-Cola and Nestlé, with soft drink growth exceeding 20%.
  • Softcar (Le Comfort) brand diapers and sanitary pads: leading in multiple markets in East and West Africa. (According to Frost & Sullivan's 2023 report, Le Comfort ranked first in sales in Africa for baby diapers and sanitary pads, with market shares of 20% and 14%, respectively.)
  • Tasty cube brand seasoning cubes: also deeply loved by African consumers, with market share in Nigeria rapidly rising to third.

For well-known domestic FMCG brands, going global is both a blue ocean and a new challenge. Domestic traditional FMCG giants' products, through traditional export trade, mainly supply Chinese supermarkets, Chinese restaurants, and Chinese enterprise communities in Africa, with almost no influence on local consumers.

If going global is inevitable, then how to go global depends on methods Whether to go global is a strategic choice for each enterprise. How to go global is a systematic methodology, and the difficulty lies in the different market environments in different countries and regions. I have summarized my observations over the years and extracted the most critical points to share with FMCG brands focusing on going global.

Market selection:

  1. From a targeting perspective, market selection is the first key point for FMCG going global. It requires thorough research and understanding of the local market, combined with multiple comprehensive factors to make a judgment, planning before acting while striving for first-mover advantage.
  2. From a channel perspective, choose whether to rely on e-commerce platforms or traditional offline distributor systems, or both. In Africa, the most suitable approach is to cooperate with B2B e-commerce platforms, which is fast and efficient.
  3. From a process perspective, it generally follows three stages: product going global—brand going global—capacity going global (to be shared in detail with cases at the forum).
  4. From the key success factors, the 2C e-commerce dividend still exists in developed countries, while emerging economies place more emphasis on offline and B2B e-commerce. The common point is to insist on 'localization.'

At the Shanghai FMCG Going Global Forum in August, I will also share some experience, frontline data, and methodology summaries on FMCG going global in Africa, allowing everyone to conduct a cross-time-and-space mental exercise on market selection, marketing, and channel construction in Africa, hoping to contribute a little to brand going global.

To help everyone see the opportunities and paths for Chinese FMCG going global, on the morning of August 21 in Shanghai, at the [7th China FMCG Conference], [New Distribution], together with frontline industry operators, will specially organize a forum titled 'The Next Stop for China's FMCG Supply: Going Global.'

  • Wang Jun, Vice President of cross-border B2B e-commerce platform Egatee, will share on-site—'Development Trends and Going Global Cases in the African FMCG Market'—interpreting from a frontline operator's perspective how Chinese brands can shift from 'suppliers' to 'market builders' in overseas markets.
  • Wang Pu, Co-founder of Genki Forest, will share on-site—'Genki Forest's Going Global Journey: Planting Asian Fruit Aromas on Global Shelves'—looking at overseas market opportunities and practical ideas from the perspective of an FMCG brand.
  • Tian Yuchen, Head of Daily Household Cleaning Category for TikTok Shop US, will share on-site—'Latest Development Trends in TikTok Shop US'—interpreting the new changes in US interest e-commerce and new growth levers for brands from a platform perspective.
  • Lu Yang, Partner of Ace Capital, will share on-site—'How Can Chinese Enterprises Expand into the US Market?'—proposing practical strategies for expanding into the US market from investment, financing, and local operations perspectives.
  • Zheng Yang, Deputy General Manager and CFO of Zhiyun Jinke (Beijing) Information Technology Co., Ltd., will share on-site—'How Russian E-commerce Platform Wildberries Helps Chinese Sellers Achieve Precise Breakthroughs and Sales Leaps'—interpreting Russia as a rapidly growing cross-border hotspot and how to build new brand pathways with local e-commerce platforms.
  • Feng Liujie, Founder & CEO of NUCNUC Snack Collection Store, will share on-site—'Chinese Snacks, Going into the Deep Blue: NUCNUC Snack Collection Store's Going Global Journey'—how snack retail can open overseas markets through cultural export, supply chain reconstruction, and scenario experience.
  • Meng Lijun, Regional Director of XTransfer—'Compliant, Safe, and Efficient Cross-border Fund Settlement Planning'—helping going-global enterprises clarify the balance among fund paths, tax compliance, and settlement efficiency.

This conference has invited cross-border e-commerce platforms from the US, Southeast Asia, Russia, and Africa, as well as brands and investors with going-global experience, for in-depth exchange and sharing, building a professional communication platform focusing on strategy, channels, organization, brand, and technology implementation!

I hope to bring multi-perspective practical experience to going-global enterprises, and I hope everyone can start integrating into this circle and no longer be an information island. Interested friends are welcome to scan the QR code to register!

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