The Outlook Of China'S Market Economy

The latest Kantar Worldpanel report showed that the growth of China's FMCG sales in 2015 was 3.5% higher than that of last year, and during this period, China's economic growth slowed to a 25 year low.

The growth trend of modern channels (hypermarkets, supermarkets and convenience stores) is basically the same as that of the whole market, and is in a weak trend with an annual growth rate of only 3.3%.

However, there are significant differences in the growth rate of different formats and formats in modern channels.

From the urban level, the annual sales of key cities (Beijing / Shanghai / Guangzhou / Chengdu) and provincial capital cities increased by only 1.4%, while the annual sales growth of county-level cities and counties also slowed down to 4.4%.

In different formats, supermarkets reported negative growth (-1.5%) for the first time in key cities and provincial cities. However, with the promotion of new channels, the growth of supermarkets in the national market was 4.4%.

Following the opening of 10 new stores in the last month of 2015, in January 2016, WAL-MART China opened 3 new stores in Inner Mongolia Ordos, Hubei Xianning and Yunnan Yiliang.

So far, WAL-MART China has opened 13 stores in two months.

And it is worth noting that more than 90% of these new stores are located in new cities.

WAL-MART believes that the market potential of China's emerging cities is promising. With its own mature management team, high-quality goods and special services, WAL-MART's strategic layout in the two or three tier cities will enter the "fast lane".

Netizens "Lao tie" wrote that the tier agent system is the most commonly used sales mode in the traditional retail industry. A product has to go through layers of agents from the manufacturer to the user, and finally to the terminal sales shop. It is not surprising that the price of the product has increased several times in this link.

Therefore, when the electricity supplier surges, the traditional enterprises are at a loss as to the "low price" of the electricity supplier.

In addition, the industry believes that the format of hypermarket is no longer favored by consumers.

The size of the hypermarket format is too large for consumers to go for a long time to find the goods they need, which is not in line with the new consumption trend.

Nelson recently released the 2016 China fast moving consumer goods market trend forecast report that consumers pay more attention to the convenience of channels than ever before, so they spend more in small retail stores and chain convenience stores, while reducing the patronage of hypermarkets and supermarkets.

Data show that in 2015, chain convenience stores contributed about 9% of the growth of fast moving consumer goods sales.

In convenience store channels, household cleaning products grew by 11%, but 4% in supermarkets. Food and instant noodles grew more than 6% in convenience stores, but sales in supermarkets dropped by nearly 12%.

In terms of retail channels, Nelson's report predicts that the high demand for convenience will continue, and that their consumption will further shift from large stores such as hypermarkets to relatively small retail outlets.

This trend, even in the category of household products, is expected to increase by 9.8 percentage points in 2016.

"Manufacturers want to win the market in 2016 and achieve leapfrog development, and accurately understand China's retail development prospects to respond more effectively to consumer demand, will be a top priority."

The Nelson report says so.

At the end of the year, the Chinese clothing industry handed in a beautiful answer.

Since 2015, raw materials, rents, labor costs and so on are constantly rising, and the profit margins of enterprises are shrinking.

Nevertheless, the Chinese garment industry delivered a beautiful answer at the end of the year.

Reporters here from

According to the statistics released, in 2015 1-11, 15586 clothing enterprises above Designated Size reached 1 trillion and 984 billion 423 million yuan in main business income, and the total profit was 112 billion 802 million yuan, an increase of 5.94% and 5.01% respectively.

Business operation capacity and solvency have been further improved.

Xie Fangming said that as people like to turn off TV and computers to watch movies in the movies, the offline experience is more and more praised by people. This is also an important reason why Ali descends to the line. At the same time, people will pay more attention to the functionality, timing and safety of products. Personalization, customization and diversification will become new consumption characteristics.

Chen Dapeng, executive vice president of China Apparel Association, pointed out that under the new economic normal situation, China's garment industry should rapidly improve our innovative ability, and all adjustments must keep pace with the development of consumption change and market demand.

In this regard, China

Xie Fangming, Secretary General of the Federation, pointed out that along with China's economic development entering the "new normal", consumer behavior and consumption trends are undergoing profound changes. And online shopping is still attracting people's attention. But people's consumption behavior is gradually returning to rationality. Online browsing and offline shopping experience has become a new trend.

Zhang Wenxin, vice president of Shanghai Wu Yi Fang Clothing Co., Ltd., in an interview, said that any entity's business is bad and there is a reason why it can not be blamed for the economic environment.

In today's era of intensified business competition and rising stars, traditional business tycoons can easily get into the situation if they do not make progress and do not seek flexibility. They are getting farther and farther away from consumers and more and more suppliers are being injured.

But often the newly entered competitors do not have the pressure of pformation, and in the mode and details, they become the new favorites of the market.

Xie Fangming also stressed that domestic textile and garment enterprisers should seriously study new changes in consumption characteristics under the new normal, speed up the development of new products, strive to adapt to small batch and multi variety processing needs, and promptly adjust marketing strategies.

Insiders believe that since 2015, although clothing consumption has basically continued the weak trend in 2014, the growth rate has stabilized, and has steadily increased in a few months.

The 1-9 month year-on-year growth rate was 10.2%, which is similar to that of the same period in 2014. Although clothing consumption has not recovered, subdivision has shown signs of recovery.

E-commerce access in China's fast consumer goods market continued to advance, in 2015 sales increased by 37%.

Jingdong, Tmall and other e-commerce giants attach importance to the contribution of fast consumer goods to the frequency and scale of e-commerce shopping, and increase investment in holiday promotion and customer pformation.

At the same time, in order to win back the cost of consumers to the electricity supplier channel,

More and more entity retailers are starting to build their own e-commerce channel platform, relying on the explosive growth of cross-border electricity providers and mobile providers, and conducting full channel pformation.

At present, most of the physical retailers are still in the initial stage of exploration in the whole channel operation. They can not really create a seamless shopping experience on the offline offline for consumers, so they have not yet formed a competitive advantage in the electricity supplier war.

In 2015, the market share of international retailers continued to decline, down 1.1 percentage points from the previous year, and to 13.4% in the modern channel, so the gap with local retailers continued to widen.

China's retail environment is undergoing tremendous changes. Although international retailers are trying to find new ways of growth, the consumption of their dominant regions (North Canton and provincial capital cities) has been sluggish. In the offline cities, they are also facing strong competition from local retailers and the challenges of electric giants, so they are still at a disadvantage.

Convenience stores are currently one of the fastest growing formats in China's retail market.

Despite fierce competition in the southern region, the format has ample market space in the northern and western regions, and is expected to continue to maintain two digit growth.

At the same time, China's convenience stores are constantly trying to innovate their business models, providing differentiated shopping experience for customers, especially in the past two years and the cooperation of the electricity supplier, undertaking the "last mile" distribution service.

Recently, Rosen and Wuhan Zhong Bai Group signed a regional licensing agreement, indicating that foreign convenience stores quickly seize the commanding heights of the inland city convenience store market through complementary advantages.

The slow growth of modern channels in the online cities has forced all retailers to turn to the offline cities for growth opportunities, which will lead to more intense market share wars.

At present, the fastest way for retailers to grow is still to expand their stores.

The strong market performance of the company in the past year is mainly due to its significant improvement in its penetration in the offline cities, and its unique new store has been expanding. 85% of the 31 new stores that were released in 2015 are in the offline cities.

However, the report on the consumer index also indicates that the growth rate of the offline cities is slowing down.

In the face of increasingly fierce competition, whether retailers can truly focus on customers and optimize the commodity structure and carry out the most effective store promotion activities will become the key to success.