Arab Today, arab today chinas fastmoving consumer goods market saturating
Last Updated : GMT 10:09:25
Arab Today, arab today
Arab Today, arab today

China's fast-moving consumer goods market saturating

Arab Today, arab today

Arab Today, arab today China's fast-moving consumer goods market saturating

Understanding Chinese Consumers
Beijing - XINHUA

 China's fast-moving consumer goods market is becoming saturated with a wide variety of good products for consumers and it was more difficult for new product launches to achieve incremental growth, a latest research has found.
Fast-moving consumer goods (FMCG) refer to food and non-food everyday consumer products that are sold quickly and at relatively low cost.
FMCG brands should aim for innovations that can bring incremental growth, rather than launch the biggest seller in the market, according to the research, sent to Xinhua on Saturday.
The research was jointly conducted by research company Kantar Worldpanel China and pollster TNS, which analyzed 210,000 new products launched in 77 categories over the past three years in China.
Growth of the FMCG market continued to slow in China over the last 12 months. With the growth of disposable income also decreased, China's consumers are being more tight-fisted with their money.
Almost all categories are introducing new products, just over half of them in the premium range. New product launches used to contribute about 8 percent of a company's overall growth.
But by 2013, that contribution had fallen to 6 percent. It's increasingly harder for marketers to get growth from innovation, according to the research.
That is particularly true for multinational companies. The research found they are having more difficulty achieving incremental growth, even in premium sectors, and they are struggling more than local companies in China.
The success ratio of local companies' new premium goods is 30 percent higher than those of multinationals. That's because local players tend to have a better understanding of the market, and they're launching products that fit the needs of Chinese consumers better, it said.
One new product launch strategy commonly seen in multinational companies is "search and re-apply." That means simply introducing products from other countries into China.
"The problem is that China is so unique that simply copying the success from another market often doesn't work," it said.
Chinese consumers are willing to try new products, but they want trusted recommendations from friends and family.
The research showed that 45 percent of new products launched in China stayed on the shelf after three years, 19 percent brought incremental volume of which only 4 percent would be big winners.
New FMCG products don't necessarily need to have the biggest sales volume. "Bigger is better" seems to be losing some of its appeal when it comes to splashy product debuts, it said.
It's crucial to measure the potential incremental growth and the potential cannibalization with existing products rather than simply going after being the biggest seller on the market, according to the research.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today chinas fastmoving consumer goods market saturating Arab Today, arab today chinas fastmoving consumer goods market saturating

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today chinas fastmoving consumer goods market saturating Arab Today, arab today chinas fastmoving consumer goods market saturating

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israeli court convicts Palestinians of 2016

GMT 04:39 2017 Tuesday ,17 October

Israeli court convicts Palestinians of 2016
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday