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Domestic FMCG sales post faster rise
Sales of domestic fast moving consumer goods grew 4.4 percent last year, twice as fast as global brands in China, according to a latest report yesterday.
The domestic brands, unlike their global counterparts, managed to capture more effectively trends such as consumers pursuing higher-end products, the OC&C Strategy Consultants' annual Global 50 report said.
"Increased average household incomes and a growing middle class boost consumer demand for better-quality products, which explains why many FMCG categories are going after high-end products, especially those related to health and quality of life," said Jack Chuang, partner of OC&C Strategy Consultant in China's mainland, Hong Kong and Taiwan.
"Domestic players have better relationships and expertise managing distributors and it is easier for them to tailor to local tastes and innovate faster," he added.
Two Chinese companies, WH Group and Tingyi, took the 18th and 47th spots respectively in the top 50 ranking, the report said.
Switzerland's Nestle was No. 1 by grocery sales, followed by Procter & Gamble, PepsiCo and Unilever.
The slowdown in the Chinese economy is having an impact on the whole industry, with alcoholic drinks falling 6.1 percent in 2015 in China.
Annual sales grew for 70 percent of all domestic FMCG brands, compared with 50 percent of global brands operating in China.
dacare This entry was posted on July 12th, 2016 at 11:49:37 am by dacare and is filed under News of China.