According to the latest research from Kantar Worldpanel (a CTR company in China), in the 52 weeks to October 6, 2017, 21 FMCG companies had over 100 million urban households purchasing their products. Among them, P&G, Yili, and Mengniu led with more than 150 million households, achieving urban household penetration rates of 92.8%, 89.6%, and 88.1%, respectively. In terms of consumer base growth, Nongfu Spring, Haitian, and Yili were the top three companies with the highest annual growth rates. FMCG companies with over 100 million urban households in China Note: Mengniu Group includes Yashili and Bimuno; Nestlé Group includes Yinlu, Hsu Fu Chi, and Totole; Mars Group includes Mars and Wrigley; Colgate Group includes Colgate and Darlie. Jason Yu, General Manager of Kantar Worldpanel Greater China, said: "Our latest research shows that in the new retail era driven by consumption upgrades and internet technology, focusing on consumers' new needs and expanding consumer penetration remains the most important path to growth. Among the 21 companies with over 100 million urban households this year, 12 are Chinese companies, and they are recruiting new consumers faster. However, in 2017, only P&G reached more than 90% of urban households in China, so there is still significant room for all listed companies to improve consumer reach." The study found that in China's dual-speed consumer market, successful FMCG manufacturers must assess the situation, seize market breakthroughs, continuously expand product lines to meet consumers' multi-level value needs, and integrate online and offline channels for omnichannel layout to effectively recruit new consumers.

  1. Seize the potential of consumption upgrades in lower-tier cities Industrial and employment shifts have driven economic and income growth in lower-tier cities. Higher population growth and lifestyle changes are accelerating consumption upgrades in these cities, providing a broad market for brand development. Major manufacturers with over 100 million consumers are actively seizing this trend, attracting more lower-tier city consumers through various marketing and media campaigns. Yili's high-end ambient yogurt brand Ambrosial has continuously sponsored the popular variety show "Running Brothers" and used influential celebrity endorsements, combined with online and offline activities, to deepen brand memory. The study found that in the year to October 2017, Ambrosial added 12 million new households in lower-tier cities. Chinese daily chemical giant Liby has enhanced consumers' acceptance of laundry detergent in lower-tier cities by sponsoring various variety shows and using social platforms to increase interaction with consumers, attracting over 3.1 million lower-tier city households to purchase Liby's laundry detergent products.
  2. Create more purchase occasions to meet consumers' multi-level needs In a highly competitive red ocean market, successful companies can create new purchase occasions and scenarios, cultivate market consumption mindsets, and thus win more consumers. Nongfu Spring has gradually created new consumption scenarios such as "cooking rice" and "brewing tea" through a series of advertisements and PR activities, tapping into consumers' purchase needs. Kantar Worldpanel data for the 52 weeks to October 6, 2017 shows that Nongfu Spring's 2-liter bottled water attracted over 2 million urban households in the past year. To cater to the taste preferences of consumers in different regions, seasoning company Haitian Group has deepened category segmentation, with its main categories of soy sauce and oyster sauce launching products for different cuisines. Through various innovative marketing methods, it showcases the various usage scenarios of its products, stimulating consumers' connection with the brand in these unique usage scenarios. In the past year, Haitian's soy sauce and oyster sauce added over 4.2 million and 6 million urban households, respectively.
  3. Maximize penetration through omnichannel shopping experiences In 2017, with the accelerated integration of online and offline, Chinese FMCG companies placed greater emphasis on leveraging insights and technology to create different touchpoints to encourage consumers to try and purchase. In the past 12 months, 58% of Chinese urban households purchased FMCG products through e-commerce channels, with nearly 30% of urban households purchasing products from these 21 companies. China's major e-commerce platforms have become important choices for new product launches, and thus gradually become key channels for many brands to win consumers' first purchase. Note: Mengniu Group includes Yashili and Bimuno; Nestlé Group includes Yinlu, Hsu Fu Chi, and Totole; Mars Group includes Mars and Wrigley; Colgate Group includes Colgate and Darlie. Kantar Worldpanel's research shows that P&G attracted 20 million urban households to purchase its products online, leading its competitors. Nongfu Spring, Hengan, and Colgate were the companies with the highest consumer growth rates in e-commerce channels. Source: Kantar Worldpanel -END-