China’s list of must-buy consumer items changing fast
September 19, 2017 Category China News Round-up, Weekly
Mouthwash stood out as the fastest growing consumer good in China, reflecting how the needs of middle-class consumers are reshaping the retail landscape in the world’s second largest economy. In the first half of this year, sales of mouthwash in China surged 70%, becoming the front runner in sales among 106 consumer goods monitored by consumer market research company Kantar Worldpanel.
In the six month period, two-thirds of the 106 categories recorded sales growth on-year, including ice cream, hand wash, ready-to-drink coffee, bottled water, cheese, kitchen tissues, cosmetics and facial masks. “The incremental rise of mouthwash reflected the gentrifying need of middle-class families in a ‘go upscale’ trend of consumer goods,” said Jason Yu, General Manager of Kantar Worldpanel in Greater China. “Niche products, new products and the growing middle-class are the key drivers of consumer goods sales growth in China.”
Outlays on consumer goods by middle-class families, or those households with a monthly salary above CNY9,000, was 14% higher than the average of less affluent households in the first half. The “go upscale” trend is also reflected by bottled water, where products like sparkling water, are becoming new lifestyle symbols.
But Chinese consumers are not that brand loyal. The likelihood they will switch brands at their next purchase is as high as 67%. In the first half of this year, nearly 80,000 new consumer products were launched in China, or 62% of last year’s total new products. Consumers are paying more for premium products while cutting back in other areas of their consumption, the South China Morning Post reports.
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