Sales of fast moving consumer goods rise in China

China's sales of fast moving consumer goods, such as packaged food, beverage and cosmetics, recorded the highest annual growth in three years last year at 4.3 percent, with online sales volume rising 29 percent, according to Kantar Worldpanel. 

Retailers are adopting new methods to catch up with the digital transformation, with the combined sales volume of hypermarket, supermarket and convenience stores rising 2.6 percent, picking up from 1.6 percent growth a year ago. 

Most multinational and local retailers have strengthened their foothold with new store openings or business formats through tie-ins with Internet companies.

Sun Art Retail Group, which operates Auchan and RT Mart malls, remains the biggest player in terms of sales, increasing its market share to 8.4 percent from 8.1 percent a year ago.

Yonghui recorded the fastest growth with new formats such as Super Species and community stores. It overtook Carrefour as the fourth largest retailer, with a market share of 3.3 percent.

About 60 percent of Chinese families have purchased fast moving consumer goods online, and in Beijing, Shanghai, Guangzhou and Chengdu, that figure is nearly 70 percent.

Purchasing frequency through online channels is also rising as Internet companies push forward their grocery businesses and smartphone penetration continues to pick up.

Internet companies will continue to leverage their capital power to combine online and offline resources, which will help retailers win back consumers and gain momentum in the coming year, the report says.

Fresh food will also become a core segment for online and offline retailers to grab a piece of cake, which could help them attract and retain buyers, it added.