Abstract

How should consumer goods companies respond when the world’s hottest market cools to a slow simmer? Is it time to abandon the illusion that China and its massive shopper population hold the keys to the future for companies selling fast-moving consumer goods (FMCG)? Should retailers scratch aggressive expansion plans for China and look elsewhere? Stick to their playbook and wait for the market to reheat? Or, is it time simply to acknowledge that growth in the world’s second-largest market for consumer goods has slowed to a pace that is more realistic—and far more sustainable—than in previous years?

This, our 10th consecutive study of the shopping behaviors of 40,000 Chinese households over the past four years, conducted in partnership with Kantar Worldpanel, provides unique insights into a rapidly evolving market. The study covers 106 FMCG categories across offline and online channels. In Volume 1, “Winning over shoppers in China’s ‘new normal,’” we chronicled the significant shifts in shoppers’ behavior and offered advice for brands hoping to advance in a market characterized by decelerated growth, widely varying pricing opportunities among product categories and other significant trends. In Volume 2 we turn our attention to the changing retail environment, analyzing the vast accumulation of shopper data to better understand how retailers can choose winning strategies for both offline and online channels.​