Page 250 - 2023 White Paper on the Business Environment in China
P. 250
3 White Paper on the Business Environment in China
2.11 Consumer Goods
Key Take-Aways latest volume of China Shopper Report for the
11th year running. Looking farther out into 2023,
• Chinese consumers have become more there's reason for optimism, according to the
cautious and price-sensitive since the start of the reports. Inflation remains relatively lower in China
pandemic. compared with Western markets, and the energy
crisis is under control, with strong indications
• China will continue to promote that the government is still striving to maintain
consumption with multiple measures in 2022 and GDP growth and is committed to balancing COVID
2023 as the country faces downward pressure. clearance and economic development. In the past
decade, Bain and Kantar have analyzed the key 26
• China’s consumer goods market has categories that span the four largest consumer
drastically grown over the past decade, and goods sectors: packaged foods, beverages,
continues to do so. personal care and home care. The pair also
looked at another 17 categories to form a more
• Global revival in the personal luxury goods comprehensive view of the market. In 2021, Chinese
market has been powered by the dynamism of consumers made more frequent trips to stores as
consumption in China and the US. COVID restrictions eased, which contributed to
a 4.1% gain in volume growth for the entire year.
• China aims to recycle a quarter of its textile But as major Chinese cities entered into lockdowns
waste and use it to produce 2 million metric tons of in the first four months of 2022, shoppers began
recycled fiber annually by 2025. stocking up again by purchasing food and home
care products in larger pack sizes, the report said.
• As their incomes rise and self-awareness With nowhere to go, they spent less on categories
grows, more Chinese women are pursuing a like high-priced skin care and makeup. In the four
high-quality life, becoming the main driver of weeks to April 22, sales volume grew by 5.6% year-
consumption spending in the new era. on-year, while average prices dropped by 5.7%,
the biggest decline in recent years, demonstrating
• New recycling guideline to contribute to enhanced consumer sensitivity to price. However,
country's ambitious climate, pollution targets. challenging times always create opportunities. The
rise in at-home consumption will benefit many
Background categories, especially food, beverages and home
care. Consumers' growing concern for health
A joint study by two consultancies has found that and hygiene will continue to spur growth of milk,
China's consumption experienced COVID-induced personal wash and other categories. The joint
turbulence in 2022, but long-term fundamentals research-based report showed that e-commerce
and future growth prospects remain solid. The fast- was the only channel to maintain solid growth
moving consumer goods or FMCG market in China in 2021, though that growth slowed to 15% from
showed signs of recovery in 2021 but consumer the 30% level of previous years. And e-commerce
behavior underwent critical changes in the first four platforms became increasingly fragmented, with
months of 2022 due to fresh COVID restrictions, more consumers shifting to options such as
said Bain & Company and Kantar Worldpanel. Pinduoduo and niche content-driven e-commerce
The two market research agencies published the platforms such as Douyin and Kuaishou. Kantar
Worldpanel Greater China’s research said that
250
2.11 Consumer Goods
Key Take-Aways latest volume of China Shopper Report for the
11th year running. Looking farther out into 2023,
• Chinese consumers have become more there's reason for optimism, according to the
cautious and price-sensitive since the start of the reports. Inflation remains relatively lower in China
pandemic. compared with Western markets, and the energy
crisis is under control, with strong indications
• China will continue to promote that the government is still striving to maintain
consumption with multiple measures in 2022 and GDP growth and is committed to balancing COVID
2023 as the country faces downward pressure. clearance and economic development. In the past
decade, Bain and Kantar have analyzed the key 26
• China’s consumer goods market has categories that span the four largest consumer
drastically grown over the past decade, and goods sectors: packaged foods, beverages,
continues to do so. personal care and home care. The pair also
looked at another 17 categories to form a more
• Global revival in the personal luxury goods comprehensive view of the market. In 2021, Chinese
market has been powered by the dynamism of consumers made more frequent trips to stores as
consumption in China and the US. COVID restrictions eased, which contributed to
a 4.1% gain in volume growth for the entire year.
• China aims to recycle a quarter of its textile But as major Chinese cities entered into lockdowns
waste and use it to produce 2 million metric tons of in the first four months of 2022, shoppers began
recycled fiber annually by 2025. stocking up again by purchasing food and home
care products in larger pack sizes, the report said.
• As their incomes rise and self-awareness With nowhere to go, they spent less on categories
grows, more Chinese women are pursuing a like high-priced skin care and makeup. In the four
high-quality life, becoming the main driver of weeks to April 22, sales volume grew by 5.6% year-
consumption spending in the new era. on-year, while average prices dropped by 5.7%,
the biggest decline in recent years, demonstrating
• New recycling guideline to contribute to enhanced consumer sensitivity to price. However,
country's ambitious climate, pollution targets. challenging times always create opportunities. The
rise in at-home consumption will benefit many
Background categories, especially food, beverages and home
care. Consumers' growing concern for health
A joint study by two consultancies has found that and hygiene will continue to spur growth of milk,
China's consumption experienced COVID-induced personal wash and other categories. The joint
turbulence in 2022, but long-term fundamentals research-based report showed that e-commerce
and future growth prospects remain solid. The fast- was the only channel to maintain solid growth
moving consumer goods or FMCG market in China in 2021, though that growth slowed to 15% from
showed signs of recovery in 2021 but consumer the 30% level of previous years. And e-commerce
behavior underwent critical changes in the first four platforms became increasingly fragmented, with
months of 2022 due to fresh COVID restrictions, more consumers shifting to options such as
said Bain & Company and Kantar Worldpanel. Pinduoduo and niche content-driven e-commerce
The two market research agencies published the platforms such as Douyin and Kuaishou. Kantar
Worldpanel Greater China’s research said that
250
