E-commerce leads China’s FMCG market with 4% YoY in Q3

Smaller formats such as super/mini and grocery stores are also gaining traction.

The e-commerce sector has outperformed the overall market for fast-moving consumer goods in China, registering a 4% year-on-year growth in the third quarter, on the back of social media platforms

In a report, Bain & Company and Kantar Worldpanel said the rise of social media platforms captured over 6% of its market share in the same period last year.

Meanwhile, smaller store formats are seeing continued growth with super/mini and grocery stores seeing their value increase by 3% and 6%, respectively, during the period.

ALSO READ: China’s FMCG sector sees ‘soft recovery’: report 

“The rise of specialized discount stores is rapidly gaining traction, reflecting a more rational approach by consumers towards daily expenditure in 2023,” said Jason Yu, Managing Director of Kantar Worldpanel in Greater China.

“This emerging trend suggests a potential intensification of competition in the retail market going forward, as these stores continue to attract price-conscious shoppers,” he added.

The report found that hypermarkets saw a decline in market share as some players decided to close their stores. 

Club warehouses, on the other hand, reported a 58% increase in value due to the growing number of buyers and increased shopping frequency.

Online-to-offline channels, meanwhile, saw an 11% YoY growth during the period as consumers prioritised convenience and speed.