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Chinese brands outshine global

News, 20 May 2016

BEIJING: Chinese FMCG brands account for three quarters of shopper decisions, according to a new study, making it the market most disposed to local brands in the world.

The 2016 Brand Footprint report from Kantar Worldpanel calculates the strength of brands in the food, beverage, health and beauty and homecare sectors in 44 countries around the world, using Consumer Reach Points (CRP) which measure how many households are buying a brand (its penetration) and how often (the number of times shoppers acquire the brand).

In China, local brands occupied the top ten "most-chosen" spots, with dairy brand Yili taking top place. By Kantar Worldpanel's reckoning, its products have been chosen by 88.5% of the population on average 7.8 times a year, generating a CRP total of 1,109m.

The report noted how Yili's marketing department had leveraged an extensive product portfolio to build mental availability and drive growth, using celebrity brand ambassadors and sponsoring popular reality TV shows.

Yili displaced food and beverage brand Master Kong, which dropped into second place (CRP total: 1,1068), while Mengniu, another dairy brand, retained third place (CRP total: 1,043m).

These three were well ahead of the rest, as the fourth most-chosen, food and beverage brand Want Want amassed a CRP total of 587.4m, and the fifth, dairy brand Bright, had 506.9m Consumer reach Points.

Jason Yu, General Manager at Kantar Worldpanel, noted that Chinese brands were an important part of the shopper repertoire and that was true far beyond the top ten.

"Looking at sector specific rankings we see familiar names including Vinda, Bluemoon, Junlebao, Space 7 etc. racing ahead of their global competitors," he said.

"With the slowdown in FMCG market growth and consumers trading up to more premium products, local brands are rapidly capitalizing on these trends and reshaping the competitive landscape," he added.

The pattern is not limited to China, as, globally, local FMCG brands grew almost twice as fast as their multinational rivals in 2015 – at 6.2% compared to 3.4%.

Data sourced from Kantar Worldpanel; additional content by Warc staff