Market Analysis: Double Standards For Consumers, 2019 Nielsen Report On China'S Urban Fast Retailing Big Data, Revealing Chinese Consumers

The market of FMCG market is divided into two levels, and the potential of waist cities should not be underestimated.


In September 17th, Nelson released the unveiling of the high-energy Market: Nelson's report on China's urban fast retailing big data (2019). The report brings together more than 30000 data labels, including consumers, stores, geographical features, products and sales volume, to see the future growth of urban retail in China.


Double standards for Chinese consumers


The report shows that Chinese consumers have obvious double standards in terms of "service" or "product". In terms of service, consumers are impatient with their daily needs and demand immediate realization. On the contrary, they can queue up for hours at the expense of something they like. In terms of products, consumers are smarter than ever, and rationally choose cost-effective products. But for those products that match their style and interest, they can also spend willfully regardless of cost.


At the same time, the report shows that the three types of high potential consumption groups, such as high-end consumers, mainstream youth (18-34 years old, who earn more than adequate food and clothing) and Volkswagen (25-44 year old children with a higher income than those with adequate food and clothing), gradually decrease with the downfall of urban echelons, and their consumption power gradually decreases. In particular, high-end and mainstream youth accounted for 11% and 37% respectively in the head of the Golden City, 4% of the high-end people in the city of waist strength, 28% of the mainstream youth, and 2% and 25% of the high-end people and the mainstream youth in the rear cities.


China's cities are developing rapidly and different cities are developing differently.


Cities with outstanding performance have certain similarities in modern scene, convenient life, good balance, and active market, but they also have their own characteristics. Compared with A-level cities, the B cities in the 50 cities of head gold are more outstanding in four key characteristics.


1., the utilization rate of cities is better, the utilization rate of B level cities is 56%, and that of Grade A cities is 43%.


2.36% of the mainstream youth accounted for 33% of the A-level cities.


3. modern channel sales accounted for 78%, slightly higher than 76% of A-class cities.


4. the per capita consumer goods index of A-level cities is 19, while that of B cities is 22.


Cities with waist strength also exhibit two characteristics:


First, widely distributed, but the market potential can not be underestimated, contributing 40% of the national fast food market, with 37% of the country's retail stores.


Two, the population density is small, but the consumption power is high, the consumer goods index per capita is 22, higher than the head 20 and the tail 15.


China's fast moving consumer goods market two level differentiation serious


The study also found that China's fast food market showed a serious two stage differentiation. The first 100 cities contributed 50% fast sales, while the other 2086 cities had the same volume of sales as the 100 cities. 80% of the mainland sales were from 50 head cities and 478 waist cities.


Although online channels are driving the growth of China's consumption, the two engines are the norm. By the end of July 2019, the overall growth rate of FMCG was 13.7%, of which the growth rate of online and offline sales channels was 36% and 4.9% respectively.