From the marketers' angle: • High volumes • Low margins • Extensive distribution networks • High stock turnover
பைடு நூலகம்
Historical Development of FMCG in China
A Brief Historical Overview of the Industry
Main characteristics of FMCGs:
From the consumers' perspective: • Frequent purchase • Low involvement • Low price
POLITICAL
ECONOMICAL SOCIO-CULTURAL TECHNOLOGICAL
➢The personal income tax amendment was implemented in September 2019, aiming to reduce the tax burden on low-income people.
Sub-sectors of FMCG Industry:
Personal Care Face cream, shampoo, etc. Household Care Liquid detergent, etc Food and Beverage Milk, cookies, etc Alcohol and Tobacco
Contents
1
Industry Analysis
I. A Brief Historical Overview of the Industry II. Industry Analysis III. Intra-industry Analysis IV. The future of the Industry
2
Firm Analysis
I. A Brief Historical Overview of the Firm II. Analysis of Competitive Strategy and Position III. The Future of the Company &
Recommendations
➢When delivering the government’s work report of 2019, Premier Wen Jiabao emphasized the importance of improving people’s income.
These consumption promoting policies will not only increase the consumption power of Chinese people, improve social demand of consumer goods, but also will increase the unit price of FMCG, thus resulting in increase of both volume and price of FMCG industry.
2
Firm Analysis
I. A Brief Historical Overview of the Firm II. Analysis of Competitive Strategy and Position III. The Future of the Company &
Recommendations
Durable goods are goods that do not quickly wear out or yield utility over time rather than being completely consumed in one use, e.g. cars, consumer electronics, furniture, sports equipment and etc.
Today, FMCG industry has developed into the world's largest industry. Food industry, a subsectors of FMCG, had become the world's largest industry ever since 2019. China‘s retail industry maintained steady and rapid growth. The total annual retail sales of China was only 3 billion yuan in 1990, became over 40 billion yuan in 2019 and over 180 billion yuan in 2019, and it is having an average annual growth of nearly 18% in the last 5 years.
Contents
1
Industry Analysis
I. A Brief Historical Overview of the Industry II. Industry Analysis III. Intra-industry Analysis IV. The future of the Industry
A Brief Historical Overview of the Industry
Fast-moving consumer goods (FMCG) are retail goods that are generally replaced or fully used up over a short period. They are sold quickly and at relatively low cost, e.g. soft drinks, toiletries, and grocery items.
Total Amount and Year on Year Growth Rate of Annual Retail Sales of Social consumer goods in China
Data source: National Bureau of Statistics
Industry Analysis - PEST