Tesco, Other Foreign Retailers Struggle In China's Retail Market

Foreign-owned retailers, including Tesco Plc and Wal-Mart Stores Inc., are slowing down their expansion plans in China. Tesco is closing down stores and opening new ones more slowly as Chinese consumers prefer to shop in local stores and as the country's economy slows down. Wal-Mart is also adopting a more cautious approach to expanding in China's $560 billion grocery industry. Local retail chains, such as Sun-Art, Yonghui Superstores Co., and China Resources Enterprise Ltd., are performing strongly in smaller cities, making it more difficult for foreign retailers to compete in tiers 2 and 3 cities.

"Tesco Stumbles With Wal-Mart as China Shoppers Buy Local", Bloomberg , October 18, 2012

“Virtual” Grocery Shopping Takes Off In China

A Chinese retailer has launched 1,000 “virtual” 3-D supermarkets at “iconic landmark locations” in the metropolitan areas of Shanghai, Beijing, Guangzhou and Shenzhen. Items at these “stores” can be purchased online using Yihaodian’s Virtual Store App; the purchases are then delivered to homes later in the day. Each virtual store offers as many as 1,000 items and offers promotional discount coupons and gift vouchers. Similar program are being tested in the U.K. and the U.S. Tesco created an online program for its HomePlus brand and offers virtual shopping in subway stations in South Korea.

"1,000 ‘Virtual Supermarkets’ To Open In China", Inquisitr, October 16, 2012

Asia Drives Growth In Worldwide Men's Skincare Market, Report Says

The Asia-Pacific region accounted for almost 60 percent of worldwide sales of men's skincare products, a rapidly expanding segment of the $33 billion male grooming industry, according to Euromonitor International. Data shows men in China, Japan, and South Korea are the region's biggest spenders on skincare products. Also, men in Asia and Brazil are spending more on skin care, and are likely to overtake the United States as the world's largest market in three years. Euromonitor also reported that the global market for male grooming products grew at an average annual rate of 6.0 percent for the past five years, leaving plenty of room for growth.

"Asia drives sales of men's skincare products", AFP/ Google, October 06, 2012

Report Forecasts More Growth For China's Beauty And Personal Care Market

China's beauty and personal care market is forecast to post strong growth rates in the next four years, according to Euromonitor International. Data shows that consumers are expected to increase their purchases of beauty products, driven by promotions by industry leaders and a strong economy. Also, the market for products designed for babies and children is expected to expand, due to a baby boom expected for 2012, while sales of anti-aging skin products are likely to keep growing, driven by purchases by older age groups. In 2011, the rapid expansion of online sales caused a decline in sales through conventional retail channels. According to the report, online sales of beauty and personal care products grew 84 percent. For example, Shiseido China Co. Ltd. began selling its products on Tmall.com and other online platforms.

"Beauty, personal care market to keep growing", China Daily, October 03, 2012

Frightened By Food Contamination Incidents, Chinese Consumers Go Organic

The organic food sector in China is benefiting from consumer reaction to recent food safety problems, according to market researcher Mintel. Eighty percent of Chinese consumers say protecting themselves from food contamination is a major reason they are willing to pay more for organic foods and beverages. Fifty-six percent of Chinese consumers in metropolitan areas say they now spend more on organic foods, and the same number say they have bought organic fresh foods and drinks in the past year. Most popular organic foods purchased by Chinese consumers: fresh milk (37 percent), cooking oil (35 percent), pork (33 percent), beef (26 percent) and chicken (26 percent). Three-fourths of Chinese consumers do their organic shopping at supermarkets.

"Growth in Organic products in China as consumers adopt multiple self protection strategies", Oxygen Report, Mintel, October 23, 2012

Mintel Reports More Men Are Buying Perfume In China

China's market for men's fragrance grew 20 percent in 2008–2011, according to Mintel. In contrast, the women's perfume market grew 10 percent during the same period, indicating more growth potential in the men's category. Data also revealed an increasing number of male consumers are switching to prestige fragrance brands, which posted 19 percent growth in sales to RMB 422 million in 2011. China's fragrance market grew 32 percent during the same period, going up in value from RMB 3.2 billion to RMB 4.2 billion. Mintel's research showed 60 percent of consumers in urban areas use fragrance to "become more attractive and well-groomed." Also, 46 percent said they purchase perfumes and fragrances from a specialist perfume shop; 37 percent said they buy at a department store; and 35 percent said they purchase online.

"The sweet smell of success for men’s fragrance category in China", Mintel Oxygen Reports, October 04, 2012

Helped By Early Presence In China, Procter & Gamble Posts 19% Growth In The Country

Procter & Gamble chief financial officer Jon Moeller said P&G, which has a $3.5 billion to $4 billion business in China, grew its business in the country 16 percent in the last fiscal year. While P& and main rival Unilever are about the same size in Asia, P&G is more than twice the size of Unilever in China. Early investment, insight-driven marketing, and product innovation helped P&G expand its China business, according to Moeller. Significantly, P&G relocated the global headquarters of its beauty and baby-care businesses to Singapore, its Asian business hub. Also, P&G's introduction of skin-whitening products from Olay and SK-II has taken advantage of Asian mentality that fair skin is beautiful.

"Early Foothold in China Pays Off", Advertising Age, October 29, 2012

Software Will Help Brands Integrate Advertising Rating Systems In China

Chinese third party technology company Miaozhen Systems announced China's first third-party mobile advertising measurement software development kits (SDK) at a recent conference in Shanghai. The software will help advertisers integrate mGRP with iGRP systems. Internet gross rating point (iGRP) is the metric used to measure the success of online videos and banners, and is compared with traditional TV and other multi-screen media. Big brands in China are also using mobile GRP (mGRP) systems and the trend is expected to induce advertisers to integrate their mobile advertising into online desktop campaigns. Proctor & Gamble, YUM!, L'Oreal, Coca-Cola, Nivea and other Chinese and international brands are participating in the movement, according to Miaozhen.

"China's Mobile GRP Movement Initiated By Big Brands", News release, Miaozhen Systems, October 09, 2012