Chinese FMCG spending up 5.6 percent in latest quarter

Total spending on fast-moving consumer goods (FMCG) in China jumped 5.6 percent in the 12-week period ending September 6, due to stronger growth in lowered-tiered cities, e-commerce channels, and higher inflation driven by food, Kantar Worldpanel said in a recent report. 

Younger families and evolving lifestyles have pushed up sales of personal-care products by 12.4 percent, although real growth in FMCG is shadowed by downward pressure from the macro-economy and lingering China-US trade uncertainties. 

The report also pointed out that urban Chinese households spent 8.8 percent more on fresh food in the previous quarter, especially fruit and pork which saw spending add 7.8 percent and 21 percent respectively. 

Packaged food saw a mixed performance but categories with health and well-being benefits continued to outperform the market. 

Spending through e-commerce channels remained a bright spot, with an annual increase of 36.2 percent. Hypermarkets, supermarkets and convenience stores saw a milder 1.7 percent increase in spending. 

Following the completion of Suning's acquisition of a majority stake of Carrefour China to strengthen its grocery business, the combined business now holds a 3.2 percent share of FMCG spending. 

As much as one-third of China's urban population is shopping through Alibaba as it continues to leverage a strong foothold in both online and offline channels and is well positioned for further grow in the Chinese retail space.

Local retailers are embracing online-to-offline service to build convenient shopping experiences and Sun Art Group, Vanguard Group and WalMart Group are the top players in terms of market share for consumer goods spending nationwide. Walmart remains the only global player amidst the top 10 hypermarket operators.