△ Add friend, please note community group purchase registration Kantar Worldpanel's latest report (in China, a CTR subsidiary) shows that in the 52 weeks ending October 5, 2018, 21 FMCG companies had purchases from over 100 million urban households, with P&G and Yili each surpassing 160 million for the first time. Their overall household penetration rates were 92.4% and 90.9%, respectively, giving them the broadest consumer base in China. In terms of consumer growth, Nongfu Spring, Haitian Group, and Dali Group were the three fastest-growing companies over the past year, each with year-on-year growth exceeding 5%.
FMCG companies covering over 100 million urban households in China
"In a highly challenging market environment, brands and retailers must continuously innovate and embrace new retail with the times," said Jason Yu, General Manager of Kantar Worldpanel Greater China. "These 21 companies with over 100 million purchasing households share a common feature: they continuously innovate to meet the new needs of Chinese consumers, bringing healthier, more efficient, and happier lifestyles. Over the past year, Chinese companies have leveraged bolder innovation models, flexible execution capabilities, and successful omnichannel strategies to continue leading foreign companies and attract more new consumers."
Winning Millennial Consumers
Although China has entered an aging society, for brands, gaining the favor of millennial consumers remains key to rapid growth. With young consumers' disposable income and personalized needs growing, they are crucial to unlocking a brand's future development potential. Among companies with above-average penetration growth over the past year, most excelled in winning purchases from young households.
In the past 12 months, Nongfu Spring Group increased its young household count by 30%, partly thanks to its vitamin water title sponsorship of the phenomenon-level talent show "Idol Producer," which was enthusiastically embraced by young fans. Additionally, Nongfu Spring launched the 17.5° non-concentrated fresh juice brand, catering to young middle-class consumers' attention to origin and freshness.
Coca-Cola also introduced portable beverage packaging and varieties with added dietary fiber, such as Sprite Fiber+, to balance young consumers' pursuit of nutrition and enjoyment.
Chinese daily chemical company Liby engaged young consumers through entertainment marketing, using celebrity endorsements and title sponsorship of the popular variety show "Chinese Restaurant" to vigorously promote brand rejuvenation, attracting 1.5 million young households to purchase its products.
Unique Innovative Products and Excellent Execution
Kantar Worldpanel research shows that in 2017, a new product was launched in China every three minutes. Amid shelves full of new products, consumers' attention is increasingly difficult to capture. Only 6% of new products helped brands achieve net growth in consumer numbers. To succeed in the highly competitive Chinese market, brands must balance innovation uniqueness with excellent execution.
P&G China, with its many brands, has ranked first in penetration for five consecutive years. In recent years, P&G has accelerated innovation and product upgrades, launching a series of breakthrough products in the premium and super-premium segments, such as Whisper Pure Cotton and liquid sanitary pads, Rejoice Micellar shampoo, Olay, and SK-II high-end lines. At the same time, P&G boldly expanded on social and e-commerce platforms to reach target consumers more effectively.
As a leading Chinese food and beverage group, Dali Group launched soybean milk beverage Doubenben in 2017, emphasizing the concept of "natural and non-GMO soybeans," which quickly gained consumer recognition. Dali's mature and deep distribution network ensured product distribution and display at the point of sale, attracting 13 million new urban households in its first year.
Offline Channel Penetration Remains Important
Over the past decade, e-commerce has transformed China's FMCG industry ecosystem and changed the way brands connect with consumers. In the era of "new retail," brands must integrate different marketing ecosystems and win consumer favor at any possible touchpoint in an omnichannel environment. Physical retailers remain the shopping destination for tens of millions of consumers every day, and are crucial for trial purchases and building consumer connections, especially in lower-tier cities. With improved data integration and logistics capabilities, physical retailers are accelerating the integration of online and offline channels to provide consumers with the most effective service.
Kantar Worldpanel's latest report shows that companies with faster consumer growth typically see penetration growth both online and offline. Leading food and beverage company Yili Group added over 4 million households online and 6 million offline over the past year. Similarly, offline channels brought more household purchases to companies like Mengniu, Hengan, Liby, and Dali. P&G also successfully attracted 2.4 million urban households through physical retail stores. This shows that cooperation between brands and physical retailers remains crucial for expanding brand footprint.
Notes:
Kantar China Consumer Index continuously monitors over 100 household purchase categories including food/beverages, cosmetics, and cleaning products. Its urban sample covers 20 provinces and 4 municipalities (Beijing, Tianjin, Shanghai, and Chongqing)
Tier 1/2 cities/upper-tier cities: Beijing/Shanghai/Guangzhou/Chengdu + provincial capitals
Lower-tier cities: prefecture-level cities + county-level cities + county towns
Mengniu Group includes Yashili and Biyou
Nestlé Group includes Yinlu, Hsu Fu Chi, and Totole
Mars Group includes Mars and Wrigley
Colgate Group includes Colgate and Darlie
Tenth B-end E-commerce Study Tour - Community Group Purchase Changsha Special Event Time: December 12-13 Event Location: Changsha · New High Bridge Event Agenda:
Morning of December 12: Community Group Purchase Exchange Salon
Afternoon of December 12: Kaola Select Heroes League Launch Conference
Night of December 12 to early morning of December 13: Field visit to Kaola Select Logistics Center — This time period is the peak warehouse sorting period, allowing direct observation and learning of the backend operations of community group purchase e-commerce
Distinguished Guests Zhao Bo, Founder of New Distribution Tang Guangliang, CEO of New High Bridge Liu Chunxiong, Renowned Marketing Expert Wang Jun, New Retail Industry Expert Ren Xiaodong, CEO of Magic Cube Cloud Sales Song Fang, Partner of New High Bridge Cai Jingzhong, Partner of Galaxy Venture Capital Chang Ke, Co-founder of Kaola Select
Welcome distributor friends interested in community group purchase to join us for understanding and field visits:
Organization Format
- Expert Exchange Salon
- Company Visit
- On-site Explanation
- One-on-one Communication
- Actual Market Case Visit
Participating distributor friends only need to pay a registration fee of 199 yuan Other expenses are self-covered Long press this QR code or click "Read Original" to register in one click! Add friend, please note your purpose -END-