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Period: September 1, 2017 to November 1, 2017
Comment & Opinion or Companies, Organizations or Consumers or Controversies & Disputes or Deals, M&A, JVs, Licensing or Earnings Release or Finance, Economics, Tax or Innovation & New Ideas or Legal, Legislation, Regulation, Policy or Market News or Marketing & Advertising or Other or People & Personalities or Press Release or Products & Brands or Research, Studies, Advice or Supply Chain or Trends

China's FMCG Market Grows 4.6 Percent In August 2017 Quarter

In China, sales of fast-moving consumer goods grew 4.6 percent during the 12-week period ending August 11, 2017, compared with the same period of the previous year, according to Kantar Worldpanel. Data from the market research firm revealed lower-tier cities saw faster growth at 4.9 percent compared with 4.1 percent for leading cities and provincial capitals.

"Further recovery for China's FMCG market", Kantar Worldpanel, September 28, 2017

China's GDP Growth Expected To Slow Down In 2H 2017, Analysts Say

After growing 6.9 percent year-on-year in the first half of 2017, China's GDP is forecast to slow down in the second half, with growth for the whole year expected to reach 6.6 percent. In 2018-2019, the country's annual GDP is expected to drop to 6 percent, although consumption is forecast to rise by 7 percent. Based on IMF estimates, average productivity of the country's state-owned enterprises is 25 percent lower than those of their counterparts in the private sector. Productivity growth in the manufacturing sector slowed down from 2.6 percent in 1998-2007 to slightly over zero percent in 2008-2016.

"China Economic Outlook: Q3 2017", Euromonitor International, October 02, 2017

Companies, Organizations  

Unilever Denies KJU Perfumed By Lux Shower Gels Named After North Korean Leader

Unilever has denied that the initials “KJU” from the brand KJU Perfumed by Lux of shower gels designed for the China market stand for Kim Jong Un, North Korea's leader. According to the company's head of personal care business, Alan Jope, the company realized there was an issue with the initials only after they had trademarked it.

"New 'KJU' Shower Gel Not Named After Kim Jong Un, Insists Unilever", Bloomberg, September 28, 2017

Warc announces Asian Strategy 2017 winners

Campaign Asia, October 30, 2017

Legal, Legislation, Regulation, Policy  

Co-Branding Campaign In China Benefits Nongfu Spring And Mobile Game

Nongfu Spring Co. has begun distributing its fruit-flavored drink (Guowei Yinliao) in China in a co-branding campaign with a popular mobile game Yinyangshi (aka, Onmyoji). The drinks are sold in four flavors: lychee, grape, grapefruit, and lemon. Each features a different licensed image of the game, which has been downloaded 10 million times in the country. A further inducement for gamers to buy the drinks – sold at ¥4 ($0.61) per 530 ml plastic bottle – is a QSR that can be scanned to obtain free game tools, game money, and other game-related benefits.

"Nongfu Spring's range of Guowei Yinliao in Shuilizhi, Shuiputao, Shuiyouzi, Shuiningmeng varieties available in China", MarketLine, August 31, 2017

Market News  

Vengeful Government Tactics Force Lotte Mart To Sell China Operations

South Korea-based discount retailer Lotte Mart is putting its China operations up for sale, alleging that the government conducted a campaign to destroy it in retaliation for cooperating with the U.S. in the area of missile defense. Beverage maker Lotte Chilsung is also considering selling its Chinese operations. Lotte Mart allowed the use of a former company golf course for deployment of a U.S. high altitude antimissile system in South Korea. The company alleges that China retaliated by shutting down stores because of purported safety violations, and by encouraging consumer boycotts. Lotte Mart spent more than $600 million to bolster the China operations, but now says enough is enough.

"Lotte Mart exits China, other units may follow", Korea JoongAng Daily, September 16, 2017

China Economic Outlook: Q3 2017

Euromonitor International, October 02, 2017

Top 10 CPG Brands in China

L2 Inc., October 11, 2017

Walmart to open more hypermarts

China Daily, October 13, 2017

Philips Growth Spurred by Toothbrush Demand in China

The New York Times, October 23, 2017


Chinese Beverage Shoppers Increasingly Prefer High-End Bottled Waters

China’s upscale beverage buyers are turning away from sugar-sweetened soft drinks toward more healthful bottled water. Over the past half-decade, the bottled water market in China grew 12 percent a year on average, to a current value of $9.1 billion. It is forecast to reach $13.3 billion by 2021. Consumers are not just buying more bottled water (i.e., 25,906 million liters in 2016), they are buying premium, high-end brands considered healthier and better tasting. High-end brands are grabbing an increasingly larger share of the leading category: 400- to 800-milliliter sizes.

"Thirst for chic bottled brands", China Daily, September 06, 2017

Why Are Chinese Tech Innovators Now Seen as Public Nuisance?

The Wall Street Journal, September 21, 2017

Further recovery for China's FMCG market

Kantar Worldpanel, September 28, 2017

Feeding Babies in China Is a Booming Business Again

The Wall Street Journal, October 23, 2017

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