Fast moving consumer goods sales rebound in second quarter

Sales of fast moving consumer goods in the second quarter picked up from a sluggish performance in previous quarters and added 3.2 percent from a year ago, as retailers seek to diversify the shopping channels available to consumers.

Sales through modern trade, including hypermarkets, supermarkets and convenience stores, jumped 3.5 percent, according to the latest quarterly report by Kantar Worldpanel.

Overall household consumer goods spending climbed only 3 percent in 2016, the lowest level in five years, as sluggish market growth and slower price hikes dragged down overall consumer goods market growth. In the first quarter of 2017 the annual growth rate was only 1.7 percent. 

Major retailers improved their market share in the three months ended June 30 as they have expanded presence in lower tier cities and online shopping channels to cater for consumer demand, the report shows.

Sun Art Retail Group, which operates Auchan and RT Mart brands, remains the leading player with 8.2 percent market share, followed by Vanguard Group's 6.3 percent and Walmart's 5.1 percent.

E-commerce spending increased 28.2 percent from a year ago and contributed 6.9 percent to the overall FMCG market in the second quarter. According to Kantar Worldpanel data, more than half of consumers from first and second tier cities have purchased consumer goods from online shopping sites.