Lo­cal con­sumer brands gain more mar­ket share

China Daily (Canada) - - NEWS CAPSULE -

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.

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