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Two layers of toilet paper changed to three layers, and toilet paper sales increased significantly.

pubdate:2018-04-27 author: clicks:

       

In China's commodity market, consumer upgrades are evident, and Chinese white-collar consumers are turning to more expensive high-end brands of fast moving consumer goods. Local brands quickly respond to consumers' tastes and change, and gradually seize the market share of foreign brands.

Chinese consumers with rising incomes, from cosmetics to toothbrushes and toilet paper, are trying to improve their quality of life, with toilet paper products turning from two to three, according to the 2007 China Shopper Report released by market research firm Bain and Kaidu Consumer Index.

In the process of Chinese consumption upgrade, the survey shows that local brands can better adapt to changes in consumers, quickly seize the high-end market. Overall, China's urban fast-food market grew 3% year-on-year, with Chinese brand sales up 8% and foreign brands up only 1.5%.

Specifically, of the 26 Chinese and foreign fast-moving brands surveyed, 14 of the 18 brands, including Nestle, Procter & Gamble and Unilever, have lost market share. Yu Jian, general manager of the Kaidu Consumer Index in China, said that multinational brands were retrogressing and local brands were steering the high-end trend.

Especially in the field of foreign-dominated personal care, China's local brands are catching up, while foreign brand market share has retreated for two consecutive years.

The main reason why domestic brands can take the lead is that Chinese local enterprises can quickly detect consumer demand changes, and can adjust their own strategies in a timely manner. This rapid response capability allows them to be promoted from innovators to innovators, forcing foreign brands to imitate them. Similar to China's technology enterprises, from imitators to Silicon Valley imitation. The power centers of foreign companies are often abroad, and the decision-making period is very long.

       Retail channel change online and convenience store growth is obvious.

Local brands can dominate in the daily chemical market, a large part of the reason is in the channels. Last year, three-quarters of the growth in sales of local brands was driven by online shopping (e-commerce channels). Foreign brands always lag behind in embracing the electricity supplier.

According to the survey results of Bain and Kaidu consumer index, embracing e-commerce and convenience stores will become an inevitable trend of brand retailing. Sales of foreign brands preferred to enter big stores fell 2%, convenience stores dominated by food and household goods grew by 7.4%, and e-commerce sales grew by more than 52%.

The categories of high penetration and high growth in e-commerce channels are precisely those of Chinese brands that have surpassed foreign brands by a large margin, such as skin care products, shampoos and baby diapers. As offline cities begin to accelerate their catch-up in terms of e-commerce channel penetration and online consumption, the era of massive expansion of physical stores may come to an end.

There are also some categories of personal and home care products, in the middle stage of e-commerce penetration, Chinese brands and foreign brands, can continue to promote these categories into e-commerce channels, in order to achieve better growth.


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