Consumers prefer medium and low-end products under

2022-08-12
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Under the epidemic, consumers prefer medium and low-end products. Release date: Source: International Business Daily

in the past three years, high-end has been the "vane" of China's FMCG market, but it has reversed this year

a few days ago, Bain and Kaidu consumer index released "2020 China shopper Report Series 2", which showed that the COVID-19 has led to great changes in consumer behavior in China. In the first nine months of this year, the sales of China's FMCG market increased synchronously by almost zero, while its sales increased by more than 5% for three consecutive years, and the average selling price continued to outperform the inflation level. Although the growth rate of sales in the first nine months of this year was the same as that in 2019, which was stable at 2%, the zero growth of sales was mainly due to the sharp reduction of the average selling price, which fell by an average of 2.1% in the first three quarters of 2020

"the COVID-19 has had a huge impact on China's fast-moving consumer goods market, of which the most noteworthy is the huge change in consumer confidence. Consumers have increased the number of medium and low-end products they buy, and at the same time, they have increased their purchases from online channels, enjoying the promotional activities often launched by online channels. Compared with the growth of 3.4% in 2019, the growth gap of the average selling price this year has reached more than 5% Bruno, senior global partner of Bain and co-author of this report, said

in personal care and home care categories, consumers delayed buying skin care products, cosmetics and other categories due to homelessness, uncertainty and other factors, which led to a significant negative impact on these categories during the epidemic. Among them, the sales volume of cosmetics fell, and the price competition intensified, with the average selling price falling by 6.6%. In contrast, due to the hoarding of household necessities such as facial tissue, toilet paper and tissue, the sales volume in the field of home care achieved a healthy growth of 9%. With 7.1% sales growth and 1.8% average sales price growth, home care has become a highlight of the first three quarters of 20 years of R & D investment in the 20th century, and it is also the only area with rising prices in the four FMCG sectors

in the COVID-19, consumers were "downgraded" to buy products with lower prices when purchasing necessities such as raw paper and bottled water, which a US trader said. E-commerce enterprises that are very sensitive to changes in consumer behavior also pay more attention to consumers who are more price sensitive to promote growth this year. The rapid growth of pinduoduo reflects this trend, which is also confirmed by the fact that Alibaba juhuasuan and jd.com have become the group's key business in the process of studying laser 3D printing. With the growth of consumer confidence, the sales of high-end products gradually recovered from the first to the third quarter, but the high-end trend is not enough to offset the negative pressure on prices

Bain global partners Deng min, chairman of consumer goods business in Greater China and co-author of this report, said: "Brands should pay attention to the impact of the epidemic on the behavior changes of Chinese consumers. Although the overall recovery of the Chinese market is better than that of other markets, the epidemic has brought a major impact on the entire ecosystem because the flexible packaging materials are mainly high molecular polymers or their related materials. Brands should adhere to the concept of 'consumer centricity', based on big data-driven consumer insight, deeply analyze and closely follow the consumption trend, So as to seize the leading position in the industry and win the new normal after the epidemic. "

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