Sun-Art Group consolidates its leadership in China

The growth of the Chinese FMCG market continues to grow slowly with 2.6% compared to the same period last year.

The latest figure 12 weeks ending 4th December from Kantar Worldpanel shows that the growth of total FMCG continue to grow slowly with 2.6% compared to the same period last year.

Nationally, Sun-Art Group is consolidating the position of the market leader with 7.5% share, up from 6.8% a year ago. Geographically, the retailer’s strong performance has strengthened its leadership in East and North where the market share expanded to 15.2% and 6.1% respectively. In South and West, the retailer grew substantially that market share saw increase to 4.3% and 1.9%.

Yonghui reached 2.3% market share nationally, gaining 0.4% from the same period a year ago. The group’s investment in opening new stores (62 news stores in 2015) has helped expand its shopper base as penetration saw significant uplift, especially in West and North where the market share increased to 4.2% and 2.3% respectively.

Local giants and regional players continue its expansion in the western region

The fastest growing region for FMCG is West, which grew spending by 4.1% in the latest quarter against year ago. Retailers are seeing potential in this area reflected in the recent mergers and investment from regional players.

HongQi showed stable growth after the acquisition of Huhui earlier in 2015, accounts for 1.5% of the market in the region. The expanded store coverage and ambitious plan of new store opening suggests retailers are seeing growth opportunity in this part of China.

Although Bubugao lost its National share to 2.8% (mainly due to losses in South region where it is down 0.5% from a year ago ) it continued to grow in West, reaching 1.4% market share (up 0.2% a year ago). Its takeover of Nancheng in West region suggests Bubugao’s should be looking to expand further in here.