Long press the QR code or click "Read Original" to register. 30+ industry experts, 100+ B2B platform founders, 800+ manufacturer friends, gather in Fuzhou to discuss the Internet transformation path of the FMCG industry. In June this year, the state released the 2016 ranking of the top 100 counties (cities) in China, which aims to measure the comprehensive sustainable development of China's county economies. Based on socio-economic statistics from more than 2,000 counties nationwide, the National Bureau of Statistics measures the comprehensive socio-economic development of counties from three aspects: development level, development vitality, and development potential. In the latest ranking, Jiangsu Kunshan, Jiangyin, Zhangjiagang, Changshu; Fujian Shishi; Jiangsu Taicang; Zhejiang Yiwu; Fujian Jinjiang; Zhejiang Cixi; Jiangsu Yixing; Shandong Longkou; Zhejiang Yuyao; Zhejiang Haining; Hunan Changsha County; and Inner Mongolia Jungar Banner ranked in the top 15. In September, Nielsen, based on years of continuous research insights and a large amount of accumulated data (including a census database of nearly one million retail stores visited annually, geographic interest point information for over 2,000 cities, demographic data, retail terminal sales data, etc.), conducted fine-grained modeling of nearly 2,000 cities in China, derived the market capacity and development potential of each city, and released the Nielsen [China FMCG Development Intercity Index]. We found:

  1. Due to differences in residents' living habits, economic development levels, modern trade penetration, and urbanization levels in each region, different consumer product categories show different levels and trends in these nearly 2,000 cities (1,857 cities, covering municipalities to county administrative levels, covering 92.2% of the national population and 94.8% of retail sales).
  2. At the same time, this list differs from the national county socio-economic comprehensive development index based on macroeconomic development levels, and is more instructive for suppliers and retailers focusing on FMCG categories to lay out their nationwide strategies. If the latest China FMCG Development Intercity Index is depicted on the following map of China (divided into 7 levels by red depth, with darker colors indicating greater consumer product sales and development potential), we can see that China's FMCG retail development is very dispersed. Every province has cities with great potential, and some county-level cities and counties are even more important than some prefecture-level cities. Through the [China FMCG Development Intercity Index], we have for the first time achieved fine-grained city potential ranking and expansion optimization. Taking personal daily chemical products as an example, we found that among 1,601 county-level economies, Jiangsu Kunshan, Jiangsu Changshu, Jiangsu Jiangyin, Zhejiang Cixi, Jiangsu Zhangjiagang, Jiangsu Danyang, Fujian Fuqing, Jiangsu Dongtai, Jiangsu Rugao, Fujian Jinjiang, Fujian Hui'an, Hebei Qian'an, Anhui Lujiang, Anhui Taihe, and Zhejiang Zhuji rank in the top 15, playing an important role in promoting the development of the personal daily chemical product category. Among them, Danyang (National Top 100 County Ranking: 18), Fuqing (42), Dongtai (85), Rugao (72), Hui'an (75), Zhuji (16), Hebei Qian'an (not in the national top 100 county economic ranking), Anhui Lujiang, Anhui Taihe are particularly noteworthy due to their lower comprehensive county economic rankings but higher FMCG development. In addition, the county-level (D City) with the fastest growth in FMCG development potential over the past year are: Anhui Lujiang County; Jiangsu Ganyu County; Fujian Zhangpu County; Zhejiang Haiyan County; Guangxi Debao County; Guangxi Bobai County; Shaanxi Chunhua County; Fujian Anxi County; Hebei Handan County; Jiangsu Jianhu County. The following heat map 2 shows the growth trend of the daily chemical category, showing that counties in most of Central China and the central-southwest region are developing rapidly. Heat map 3 below shows the specific development of all 1,857 cities nationwide. Let's take Fujian as an example. It has 67 cities and counties under its jurisdiction, with 6,356 modern trade stores, of which counties and county-level cities contribute 23% of the importance of modern trade sales in Fujian Province (counties and county-level cities contribute 50.1% of the importance of traditional trade sales in Fujian Province). Case in point: Quanzhou (prefecture-level city) has 504 modern trade stores. If you add the counties and county-level cities under Quanzhou, the total number of modern trade stores exceeds 800, close to Fuzhou, firmly occupying the third position in Fujian's retail format. Hui'an County, under Quanzhou (county-level city), appears in the 11th position of the county-level personal daily chemical product category development index in the [China FMCG Development Intercity Index] for channel retailers, and the average sales importance of a single modern trade store is very high. With a population of nearly one million, it is located on the north wing of Quanzhou and is an important part of the "one bay, two wings" development plan. It is a must-fight place for every retailer and manufacturer. NEWS Nielsen [China FMCG Development Intercity Index] is now on sale! Nielsen [China FMCG Development Intercity Index] is now on sale. This report has a unique city index for each FMCG category, and each city's indicators can also be broken down by hypermarket, large and small supermarkets, convenience stores, mother and baby stores, cosmetics specialty stores, etc. For details, please contact your Nielsen service team or Ru.Jia@nielsen.com, Chen.Gong@nielsen.com. September orders have a special launch discount. Extended Reading:

[How Important Is Convenience?] Everything You Want to Know About China's Retail Is Here!

Since 2016, China's overall FMCG can be described with one keyword: slowdown. At present, the development of China's entire retail industry accounts for a relatively high proportion of GDP. It is unrealistic for the retail industry to maintain the same annual growth rate of 20% to 30% as before. On the other hand, China's urbanization rate has also shown a slow development trend after exceeding 50%. Offline retailers face a more severe competitive situation. In such a macro environment, brand owners need retailers to understand consumer needs, adapt to changes in consumer behavior, and continuously innovate. In an environment where offline retail generally feels pressure, small and medium-sized retail formats have shown good sales growth, mainly from: smaller convenience stores and small supermarkets in modern channels, as well as some specialty channels like cosmetics and mother and baby. In terms of store growth rate: mother and baby stores grew by 13%, cosmetics stores, convenience stores, and small supermarkets grew by about 10%, while hypermarket store growth was only about 5%. Although overall hypermarket channel sales growth has slowed, industry concentration is rising. In the past year, the top 5 retailers in the market have expanded their market share through capital operations such as mergers and acquisitions and equity participation during the market downturn, with a growth rate 3.5% higher than the market average. It can be seen that in the case of economic slowdown, leading hypermarket retailers have a higher ability to resist industry recession. Cross-border influence and the segmentation of small formats have driven overall retail development. The concept of professional formats - category centers - has stimulated the emergence of more professional category stores. In China, more and more professional category centers are being established in hypermarkets. On the other hand, retailers are not limited to original formats and store positioning, but also capture diverted consumer spending through cross-border store innovation, including adding coffee and dining sections in convenience stores to create interactive communication. This kind of cross-border operation will become more and more common in the future. It can be said that the changes in China's entire retail channel are adjusted with the overall preferences of the middle class. In today's richer material life, the middle class has more diversified requirements and considers more factors in consumption. They pursue convenience, pay attention to health, and are also willing to pay for quality. Nielsen data shows that regular large-scale shopping in first-tier cities has become the main shopping purpose, while in fourth-tier cities, the main shopping purpose is still daily home replenishment. Regular large-scale shopping means fewer visits but more purchases per visit. Compared with fourth-tier cities, consumers in first-tier cities have higher economic income, faster pace of life, and more obvious middle-class consumption characteristics. In the past five years, the frequency of shopping visits in the hypermarket channel has dropped by 19%, and the average monthly consumption frequency in hypermarkets or department stores has decreased significantly compared with convenience stores and online shopping. Consumer demand for convenience is very important. At present, consumers' demand for convenience is mainly reflected in: Saving shopping time: Whether going to a store or shopping online, they hope to spend less time. Convenience in shopping decisions: Consumers hope to have more and better help to simplify the shopping decision process. Online product comparison, offline through better product display, more accurate and optimized product selection. One-stop consumption: Consumers' demand for physical retail has changed from pure shopping needs to shopping, dining, entertainment, leisure, making friends, and other needs. Meeting shopping needs based on life situations and scenarios: Consumers' life patterns are increasingly diversified, and consumption needs based on different life situations and business districts have also produced significant differentiation. Compared with consumers' increasing demand for convenience, in the retail market, small or fast channels are developing faster, and online shopping is developing particularly rapidly. Among the factors driving online shopping, the proportion of price factors is declining, while the proportion of convenience factors, including convenient selection and comparison and home delivery, is increasing. This also makes us see that e-commerce is paying more and more attention to its own logistics construction, and delivery speed is constantly challenging limits. With the increasing cost of new traffic, maintaining and mining existing customers and providing convenience for their repeat purchases is a lower-cost direction for retailers. Improving convenience is of great significance for long-term customer retention. The number of convenience stores in China has doubled in the past five years. However, compared with developed regions globally, such as Japan where one convenience store covers 2,350 people, Taiwan covers about 2,000 people, and Guangzhou and Shanghai cover about 5,000 people, our store coverage density still has room for improvement. In the future, with the advancement of urbanization and the steady increase in residents' income, the rapid development of convenience stores is still expected. Convenience stores vigorously develop convenience services, making them a one-stop life service platform for consumers. At the same time, due to convenience, consumers are more willing to pay a high premium for product sales. However, how to choose suitable products for different channels is still an important topic. Some promotional methods in hypermarkets are not suitable for convenience stores. Therefore, for retailers and manufacturers, how to seize the trend of convenience store development needs to pay attention to the following points:

  1. The product structure of convenience stores is more high-end. For example, packaged water, the mainstream price band in hypermarkets and supermarkets is 1-2 yuan, while in convenience stores it is as high as 3-4 yuan;
  2. Rich fresh food is an important factor for convenience stores to form differentiated competitive advantages and promote high-frequency customer visits;
  3. The replacement of new products in convenience stores is very fast, with a replacement rate of over 18% per year, compared with only about 5% in hypermarkets. Therefore, convenience stores need to continuously replace and update products to meet the needs of young customers who like to try new things. In addition, in terms of form, unlike supermarket and hypermarket customers who prefer direct price reductions, convenience store customers have a higher acceptance of member prices. Therefore, for manufacturers and retailers, how to use membership incentive mechanisms to promote member consumption stickiness, and at the same time use POS data generated by member consumption to mine consumption behavior and develop targeted membership incentive mechanisms, is an important part of seizing the growth opportunities of the convenience store channel. At the same time, for different consumer business districts, retailers and manufacturers need to consider the possible application scenarios of consumers and related consumption opportunities, and then provide corresponding products and services. For example: Can convenience stores absolutely not sell whole boxes of large packages? It also needs to consider the surrounding business district status. If there is consumer demand, how to conveniently realize the consumption closed loop to meet such demand requires designing the shopping process from the perspective of shoppers. Based on the growth of consumers' one-stop consumption needs, the transformation of hypermarket formats and the main form of new store openings are carried out in the direction of shopping mall development. Compared with traditional department stores, shopping malls target a younger customer group. In addition to simple shopping needs, young customers also have more diverse life needs. According to Nielsen research, 73% of consumer groups go to shopping malls for dining, and shopping purposes only rank second. And from the changes in recent years, a large part of consumers go to shopping malls for leisure purposes. In addition, different age groups have significant differences in consumption formats in shopping malls. Compared with post-90s consumers, they pay more attention to the performance of entertainment formats; while for post-70s and post-80s consumers, they may pay more attention to the performance of children's formats. For retailers and manufacturers, this means that your customer base and their consumption characteristics determine your business mix. How to apply the synergy of high-frequency and low-frequency formats, high-penetration and low-penetration formats, to achieve format complementarity is a problem that every retailer and manufacturer must consider. New Food Era · New Distribution —— 2016 China "FMCG + Internet" Summit Forum —— This is a grand event focusing on how the FMCG industry channel will change under the general trend of Internet + transformation Conference Agenda 09:00-09:30 Registration 09:30-09:35 Host opening 09:35-10:05 2016 China FMCG Industry Trend Analysis Report - Zhao Bo 10:05-10:25 FMCG Enterprise Transformation Strategy and Path - Liu Chunxiong 10:25-10:45 Opportunities and Challenges Brought by FMCG Channel Reform - Field 365 CEO Liu Zhao 10:45-11:25 Alibaba Retail Link All-round Empowerment - Alibaba Retail Link Guo Kunkun 11:25-12:00 Roundtable Forum - Brand Owner Transformation: Improvement vs. Reconstruction? (Guests to be confirmed) 12:00-13:30 Lunch 13:30-14:00 Dealer Transformation: City Distribution Trend Development - Weijie City Distribution CEO Wang Qi 14:00-14:30 Roundtable Forum - Why Do Dealers Need to Do Logistics in Transformation? 14:30-15:00 Detailed Explanation of Zhongshang Huimin's One Machine, Two Wings Strategy - Zhongshang Huimin Vice President Su Xiaoxin 15:00-15:30 Detailed Explanation of Zhanghe Cloud Factory Strategy - Zhanghe Tianxia Yang Lixiang (Speech content to be confirmed) 15:30-16:00 Supply Chain Finance is the Lubricant for B2B to Drive Traditional Business - 51 Order CEO Chen Xian 16:00-16:30 2B Investment Principles and Ideas - Zhen Fund Founder Xu Xiaoping (Guest to be confirmed) 16:30-17:00 Small Retail, Big Business Opportunities, China's Retail Transformation and Upgrading - Yurun Group E-commerce Division General Manager Wang Jianfeng 17:00-17:30 Roundtable Forum - Who is the King of FMCG B2B Models (Guests to be confirmed) 18:00-20:00 Dinner For manufacturer friends who want to transform, this grand event is not to be missed. Interested friends can long press the QR code below or click "Read Original" to register. Registration Method: Long press the QR code below or click "Read Original" ↓↓↓ Click "Read Original" [Register]