FMCG Industry Characters

  • High consuming frequency, short durability, various consumer groups, demanding requests on convenience, diversified and complicated distribution channels, co-existence of traditional and new industry forms; besides, convergence of this industry is more and more remarkable, competitions are becoming more and more intense.
  • FMCG belong to impulse-buying goods, which are not sensitive to others¡¯ suggestions and rely on personal habits; no need to compare similar products, the exterior/package, promotion, price, retail store etc. play important roles in sales.
  • Major impact factors for competition are: 1. Get close to consumers via a distribution network with high coverage rate and co-existence of several distribution channels; 2. Reasonable retail pattern and effective channel control and management; 3. Marketing organization orientated by powerful marketing functions, to realize cooperation of market and distribution; 4. Promotion of brand awareness and marketing effect, as well as correct marketing strategies.

National FMCG Market Development Situations

  • With the integration of worldwide economy and development of Chinese economy, more foreign FMCG companies are flowing into China; meanwhile, native companies are also growing up, competitions are becoming more and more intense, which are embodied by frequent advertisements to consumers, as well as contests for channels.
  • Foreign capital takes more and more market share, leading to a gradually cramped space for native brands.
  • Modern channels take more share while traditional ones gradually take less.
  • Contests for city market are more intense; at the same time, tentacles are extending toward towns and villages.
  • New brands created by retailers are increasing, although their current market share is still low.
  • Consumers have more choices, and their loyalty to brand/retail store is declining.
  • Consumers are affected more and more by retail end market activities.
  • Producers and retailers begin to pay special attention to the investments on consumer study.

 

 

 

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