Chinese brands are leaders on the Chinese FMCG market
The last annual study of the FMCG market revealed that the top 10 most chosen FMCG brands in China are brands with Chinese origins. The ranking was established regarding how many times the brands are bought in the country across the food, beverage, health and beauty and home care sectors. The investigation uses an insightful metric called Consumer Reach Points. This metric consists in measuring how many households on the territory are buying the brand and how often they do. It result in a clear overview of consumers preferences (More about a type of FMCG in China here).
Top ten FMCG brands in China
|Rank||Name of the company||% of penetration||Frequency|
|4||Want Want China||73||5,4|
|6||Bright Food Group||47,5||6,8|
|7||Unit president China Holdings LTD||68,7||4,7|
Master Kong, ranked first on the FMGC market according to this survey has seen its products bought 8,8 times per year by 90,2% households in urban areas. And this success, the brand owes it to its extensive coverage strategy, which secured the leading position of the brand for the third year in a row.
The top three companies, Master Kong, Yili and Mengniu were bought by Chinese consumers more than 1 billion times a year.
Why Chinese consumers turn to Chinese brands
The Chinese FMCG market is slowing down. Consumers are offered a wider range of brand choices, at more and more competitive prices and heavier promotion, both off and on line. And as their incomes arise, they are becoming more and more exigent. And local brands are evolving to adapt the changes in consumers’ needs and habits. They are strengthening their engagement with innovating products and healthy lifestyle positions.
How can foreign brands compete?
Opportunities remain abundant on this challenging but still growing market for both Chinese and foreign brands. But it is essential to know the market in order to meet the changing needs of Chinese households, especially in the booming lower cities. And in a country with more than 600 million netizens and a booming e-commerce, internet has become an essential tool to be acknowledged and to reach Chinese consumers.
Searching the market, deciding on how to adapt the product and the brand image to Chinese customers’ sensibility is the first step. The second is the realization of an efficient e-marketing strategy which consists in 4 key points:
- A website in Chinese referenced on Baidu
- A good use of KOL (Key Opinion Leaders)
- Good PR (Press Relation)
- A good Community management (See more on community management)
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