Financial Times

China's consumers go local for daily necessities

China's consumers go local for daily necessities

  • July 14, 2015
  • min read

Financial Times

China's consumers go local for daily necessities

Local brands in China are grabbing market share for fast-moving consumer goods items, making it harder for multinational FMCG companies to compete. Growth in China's FMCG market by value has slowed from nearly 12% in 2012 to 4.4% in the first quarter of 2015 year-on-year, according to a report from Bain & Company and Kantar Worldpanel. Overall FMCG sales volume was flat in 2014 compared with 2013, while average prices rose 5.4%. "It's a different game for FMCG brands in China," says Bruno Lannes, a partner in Bain's China Consumer Products practice. "Without the advantages of volume growth or premium pricing, FMCG companies are seeking new ways to compete."