Imported FMCG Market Is Booming In China

China’s domestic Fast Moving Consumer Goods (FMCG) market has slowed from five years ago. Third quarter growth was a mere 3.6 percent higher than last year, while in 2011 third quarter growth was 15 percent, according to Kantar Worldpanel. Imported FMCG is a different story, however. Sales/consumption of imported goods in China grew 18 percent during the 12 months before June 2016, six times faster than market average. Growth was driven by imported milk, coffee (+32 percent), instant noodles (+29 percent), and snacks (+26 percent). In non-food categories, hair care, personal wash and cosmetics experienced strong sales growth.

"Imported goods outgrows market by 6 times", Report, Kantar Worldpanel, November 30, 2016

Korean Beauty Brands Riding The Wave Of K-Pop Interest in China

A survey from FT Confidential Research on the Chinese cosmetics market found that South Korean brands were catching US and European labels, especially among young consumers, reflecting their interest in K-pop culture. L’Oréal is still the most popular brand, but the popularity of US and European brands generally is waning as Korean brands strengthen their hold. Popular Korean brands include Laneige and Amorepacific, and western brand companies are not ignoring this trend. LVMH has invested in Korean cosmetics company Clio, and last year Estée Lauder acquired a stake in Have & Be, which owns the DR Jart+ and Do The Right Things brands. Chinese cosmetics purchasers are particularly interested in BB and CC skin creams, but the cosmetics market generally is seeing strong growth in China, helped by the Government scrapping the 30 percent consumption tax on mass cosmetics products and halving it for premium items. E-commerce was the favored channel for younger shoppers, but the over-35s ...  More

"South Korean cosmetics a hit among young Chinese as K-pop booms", Nikkei, December 01, 2016

Ingredion To Distribute Sweetener Company’s Products Globally

Stevia-based sweetener maker SweeGen has named multi-industry ingredients provider Ingredion as its exclusive global distributor except in China, where distribution rights will be non-exclusive. Ingredion will begin distribution of California-based SweeGen’s products in February 2017 in the U.S., and will expand gradually internationally as regulatory approvals are secured. SweeGen's zero-calorie sweeteners are made by a proprietary process using pure stevia leaf extract. Illinois-based Ingredion says the sweeteners have a clean, sugar-like taste suitable for use in a variety of foods and beverages.

"Ingredion and Sweegen, Inc. Announce Agreement for Ingredion to Distribute Sweegen's Stevia Sweeteners", News release, Ingredion, December 01, 2016

P&G Wins FMCG Market Penetration Contest In China In 2016

A survey by Kantar China finds that Procter & Gamble and two big Chinese dairy firms had the greatest penetration of the Chinese fast moving consumer goods (FMCG) market in 2016. Eighty-eight percent of urban families bought at least one item from Inner Mongolia Yili and China Mengniu Dairy, a total of 146 million Chinese families living in cities. P&G’s market penetration reached 93.4 percent with its lineup of dozens of FMCG brands like Crest, Head & Shoulders and Oral B. Fourth on the list was Swiss-based food manufacturer Nestlė, followed by Tinyi Holding’s Master Kong, an instant noodle brand.

"P&G, Yili and Mengniu Top Brands in Reaching Chinese Consumers, Survey Finds", South China Morning Post, December 02, 2016

Shiseido To Launch Elixir Skincare Range In China

Japanese brand Shiseido is launching the Elixir line of skincare products in China in January 2017 through 10 dedicated outlets, with the first in Shanghai. The stores will incorporate Japanese imagery, and will be augmented with e-commerce. Prices will be some 30% higher than in Japan, and production will shift from Vietnam to Osaka to allow Shiseido to claim the products are "made in Japan." The Elixir line has proved popular with Chinese tourists to Japan. 53 percent of the company’s sales are from overseas and the company is also reinforcing its position in the US and Europe.
 

"With skin care sales, Shiseido seeks fresh Chinese image", Nikkei, December 14, 2016

P&G's Oral-B Brand Sees Potential In China's Electric Toothbrush Market

Procter & Gamble’s Oral-B oral care brand is optimistic about the potential for electric toothbrushes in China, supported by increased awareness of oral hygiene and rising incomes. The brand recently launched an intelligent electric toothbrush, the iBrush, and Oral-B's electric toothbrush products have grown between two and three times each year for the last three years. Most sales are online. However, market penetration remains low, with just two percent of Chinese residents using electric toothbrushes. Chinese toothpaste brand Saky believes the Chinese oral care market as a whole will reach 500 billion yuan within 15 years.

"Oral-B focuses sales on China's rising middle class", China Daily, December 19, 2016