"2022 China Shopper Report, Series 1" released on June 21

Our reporter Luo Chen

Introduction: The latest research from Bain & Company and Kantar Worldpanel shows that the development trend of fast-moving consumer goods in 2021 will continue into early 2022.

Continuing the trend of lower than GDP growth rate, the overall sales of the FMCG market in 2021 will increase by 3.

Bain & Company and Kantar Worldpanel released the "2022 China Shopper Report, Series 1" on June 21.

This year's report first reviews the impact of the epidemic on China's fast-moving consumer goods market and overall changes, followed by an in-depth analysis and outlook on the market since the beginning of this year, and finally provides targeted and actionable solutions and suggestions for brands and retailers

The report pointed out that 2020 will be an extremely turbulent year for China's fast-moving consumer goods market

The development trend of fast-moving consumer goods at the end of 2021 continued to the beginning of 2022, but with the impact of the epidemic in some areas, the situation began to change in March and April

"In the context of the continued uncertainty brought about by the epidemic, although Chinese consumers have resumed shopping, they have shown some new thinking patterns and different consumption behaviors

The ups and downs of the FMCG market in 2021 and early 2022 are like a "roller coaster"

The consumer behavior in 2021 shows obvious post-epidemic characteristics.

In 2021, with the effective prevention and control of the new crown epidemic, consumers increased the frequency of shopping, driving sales growth of 4.

Before the outbreak of the new crown epidemic, FMCG companies were able to steadily promote premiumization for five consecutive years.

　　The personal care and home care categories continued their growth in 2021, growing 4% and 6%, respectively

　　As in 2020, consumers will continue to stock up on large-packaged food and home care products in the short term after the outbreak in 2022, reducing consumer spending on high-priced products such as skin care products and color cosmetics

　　"Bain first proposed the concept of double-speed growth in 2016.

　　Research shows that e-commerce will be the only channel to maintain growth in 2021, although the growth rate has slowed to 15% from around 30% in previous years

　　“The top performers in the FMCG market are taking steps to proactively respond to these changes by reassessing their e-commerce channel strategies across platforms, striving to differentiate their product portfolios and building operational expertise to reach different consumers Groups to meet different consumer needs

　　In 2021, emerging brands in most categories will continue to grab the market share of big brands, but leading brands in some categories such as conditioners, bottled water, color cosmetics, and infant formula milk powder have begun to regain lost ground

　　Implications for brands and retailers: Turbulence will be the new normal

　　The uncertainty brought about by the outbreak of the new crown in 2020 may be a preview of the market turmoil in the next few years
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We believe that businesses need to accept now that turbulence will be the new normal
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To this end, companies should proactively exercise scenario planning ahead of time to prepare for various possible outcomes, rather than relying on one plan to succeed
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For consumer brands, this means paying close attention to the following:

　　Brand owners should maintain an optimistic attitude towards the future, and believe that the market will improve significantly in 2023
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The fundamentals of China's economy remain strong, with a growing middle class, continued urbanization, and effective control of inflation
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Therefore, brands should use 2022 to prepare for a strong rebound in 2023
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At the same time, retailers should:

　　The rest of 2022 is likely to be volatile and uncertain, with consumers becoming more sensitive to price increases in many categories
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Looking further into 2023, the long-term fundamentals of the Chinese market remain solid, giving reason to remain optimistic that the market will return to healthy growth
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Compared with Western countries, China's inflation is lower, and the energy crisis is effectively controlled; at the same time, the Chinese government is taking multiple measures to balance the relationship between dynamic clearing and economic development; some leading fast-moving consumer goods companies have already done both.
Prepare to meet the challenges and market growth opportunities presented by turbulent times
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　　Editor in charge: Xiao Zhihan Review: Wang Jinchen