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Rapid growth expected for online fast-moving goods

By WANG ZHUOQIONG (chinadaily.com.cn) Updated: 2014-06-19 19:35

The market share of online fast-moving consumer goods (FMCG) in China will continue to grow rapidly, reaching 3.3 percent of the total market by 2016, according to an industry report.

In the report, launched Thursday by Kantar Worldpanel, e-commerce is predicted to account for $53 billion of global FMCG sales by 2016 – an increase of $17 billion or 47 percent on the current $36 billion.

Although only 28 percent of mainland households shop online for FMCG goods at present, the figure is close to 50 percent in cities including Beijing and Shanghai.

Jason Yu, general manager at Kantar Worldpanel China, said although online only makes up a small share of FMCG sales at the moment, all countries are witnessing considerable growth.

The future belongs to retailers and brands that broaden target markets. Being a slow adopter has the potential to significantly damage sales and erode market share, he said.

One of the main concerns for FMCG players is that e-commerce will lessen spending in physical shops but Yu said an online presence helps retailers secure additional revenue rather than cannibalizing existing spending in brick and mortar stores.

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