Local consumer brands gain more market share
The fifth annual China Shopper Report, issued by Bain & Company and Kantar Worldpanel, suggests that the rise of the service sector in China and its higher paying jobs has helped boost growth among brands in premium categories, such as yogurt and pet food. It also says that foreign brands are continuing to lose battles to local brands in this sector.
Brands in categories that traditionally cater to blue-collar workers are suffering as many manufacturing jobs move to lower-cost countries. For example, in 2015, sales of instant noodles declined by 12.5 percent and beer by 3.6 percent.
Last year, local companies’ sales grew by nearly 8 percent and continue to gain share over their foreign rivals. Foreign brands overall declined by 1.4 percent in 2015. Foreign companies generated their greatest share increase in fabric softener, infant formula, instant noodles and beer.