Domestic Consumer Market Continues To Improve After The Epidemic: Foreign Funded Enterprises Have Increased The Weight Of New Products In The Third China International Fair

On November 5, the third China International Import Expo was held as scheduled in Shanghai National Convention and Exhibition Center. This is an important international exchange platform provided by China against the background of the global spread of the new crown pneumonia epidemic and the continuous downturn of the world economy. It is also a pragmatic and powerful move for China to continuously expand its opening up to the outside world.

Under the epidemic situation, China's market, which was the first to recover, showed the world a "template" for how to recover the consumer market. In the first three quarters of the domestic consumer market continued to be better, "new and old friends" from all over the world exhibited more and more updated products, technologies and services on the platform of ICIF.

Richemont, the global luxury group that signed the contract for the first time this year, won more than 500 square meters of exhibition net area. UNIQLO, the parent company of UNIQLO, also signed a 1500 square meter booth for the first time. In terms of FMCG manufacturers, P & G presented 83 products in 12 categories at the 3rd China International Fair. Unilever has a platform of nearly 700 square meters, more than 20 imported brands and more than 400 products.

"China has become our global innovation center and the home of our future core competitiveness, including new digital technology, new retail, sustainable consumption technology and beauty technology." An Gong, chairman and CEO of L'Oreal Group, said that the spirit of openness and sharing embodied China's attitude as a confident power and its determination to further open up and share a better future with the world.

In the post epidemic era, China's market has become an increasingly important growth engine for multinational enterprises. In the relatively mature and stable consumer goods market, ICIF provides import manufacturers with a newer and broader new product display platform and landing channel to connect with more potential business objects.

Key words: New

Consumer goods are the area where the most new products and first-line products are displayed in the three fairs.

As the first place of many new products in the world, ICIF has become the "accelerator" for L'Oreal, the largest cosmetics group in the world, to introduce new products and make explosive products. L'Oreal, which has been in the exhibition for the third year, made its debut with five new brands, including high-end beauty brand Valentino and four fragrance brands.

"With the increasing uncertainty of the world, people urgently need an open and inclusive world and a grand ceremony for all inclusive and win-win results, so as to carry the expectation of shared prosperity of the world and restore confidence in a better future." Fabry, President and chief executive officer of L'Oreal China, said that L'Oreal was promoting the fair to surpass "the first place of global new products" and further upgrade to be the global first place of "new ideas, new scenes and new solutions".

This year, the area of Shiseido's booth has doubled compared with that of last year, and signed a three-year cooperation memorandum with ICIF at the first time, hoping to continuously enhance its brand influence in the Chinese market with the help of ICIF. Shiseido has also brought two new brands to be released. The ginza is the first overseas exhibition outside Japan and duty-free shops, and Baum is the first overseas exhibition outside Japan.

LEGO Group's 378 square meter exhibition stand is themed with "making a new world with music". The product area of Chinese cultural elements with Chinese traditional architectural features presents LEGO Monkey King series and other products. In addition, LEGO Group will launch new products in the Expo for the third consecutive year.

As of October 31, 2020, LEGO Group has opened 207 flagship stores of LEGO brand in mainland China, nearly double the growth rate compared with the time when the Expo was held in 2019.

"In the first half of this year, despite the impact of the new outbreak, we continued to maintain double-digit growth in China. China's recovery rate is leading the world. " Huang Guoqiang, senior vice president of LEGO Group and general manager of China, told the 21st century economic report that Lego will continue to invest in brand building and protection and retail business development in China, "we will open 80 brand retail stores in 2021, and the number of LEGO brand retail stores in mainland China will reach 300 by the end of 2021."

"New friends" also brings a lot of new products: UNIQLO, with the theme of "tomorrow Museum" with an area of 1500 square meters, is the largest exhibition stand of consumer goods (5.2h Pavilion) in the Expo, including 10 innovation exhibition areas and 6 clothing technology. This is the first time that UNIQLO lifewear global brand Expo is presented in China after New York, Paris and London. It is also the world's first show of + J Designer Series, and 3D fully formed seamless knitting machine also makes its debut in China.

ADM made its debut as an exhibitor at the Expo to show its agricultural products trade, human nutrition, animal nutrition and other products. It is reported that ADM will sign several billion US dollars of memorandum of understanding with several Chinese partners, such as COFCO group, COSCO, 93 group and Yuntianhua.

"Old friends" are also constantly adding weight: Danone brings nearly 200 health products to the exhibition, and the number of exhibits has increased by 50% for two consecutive years. Nearly 50 products are on the debut in China for the first time. Since last year, more than 40 countries, such as Germany, have been introduced into China.

"At a time of global economic and trade crisis, China will hold the third ICIF as scheduled and fulfill its promise of further opening up with practical actions, which will help accelerate the recovery of global economic growth." Bruno chevot, senior vice president of Danone, said, "the third ICIF will bring more growth impetus to the global economy under the epidemic situation, and help global trade recover faster and develop better."

This time, the exhibition of fashion products and cosmetics in the fashion exhibition area of "fashion" and "back to the world" was also reflected. Including French fashion brand Lanvin, California women's clothing brand St. High end fashion brands such as jordani, Germany, Germany, Germany, Germany, Germany, Germany.

IKEA is also constantly showing more diverse ideas: IKEA takes "recycling" as the core concept, recycles PET materials to make souvenirs for the third ICIF, provides products and sustainable information communication for public areas such as the reception hall and shared rest area, so as to promote the green, circular and sustainable exhibition concept to get further attention and practice.

The recovery trend of import product market is better

According to the latest data of the National Bureau of statistics, in the first three quarters, the per capita disposable income of national residents was 23781 yuan, a nominal increase of 3.9% over the same period of the previous year. After deducting the price factor, the actual increase was 0.6%. The median per capita disposable income of China's residents was 20512 yuan, an increase of 3.2%.

In the first three quarters, the per capita expenditure on food, tobacco and alcohol consumption was 4546 yuan, an increase of 5.5%; the per capita expenditure on clothing was 847 yuan, down 11.9%; the per capita expenditure on daily necessities and services was 896 yuan, a decrease of 3.3%.

Dong Lihua, director of the Department of foreign trade and economic cooperation of the National Bureau of statistics, pointed out that the total retail sales of consumer goods increased by 0.9% year-on-year in the third quarter, and the quarterly growth rate turned positive for the first time in the year. The consumer market continued to improve: the growth rate of urban consumption market turned positive, and the rural market recovered better than the urban market.

New consumption has maintained rapid development. In the first three quarters, online retail sales of physical goods increased by 15.3% year-on-year, 1.0 percentage points faster than the first half of the year, which was significantly better than the total retail sales of social consumer goods in the same period; the proportion of online retail sales of physical goods accounted for 24.3% of the total retail sales of social consumer goods.

As China's economic growth rate turned positive in the third quarter, the consumption of imported goods has gradually recovered. According to the latest research report on China's urban household consumption by Kaidu consumer index, the year-on-year growth rate of fast-moving consumer goods in the third quarter was 4.1%, and the growth rate of imported goods decreased from - 13.5% in the first quarter to - 3.1% in the same period last year. The overall recovery trend is good, and the demand and confidence of consumers for imported products have been significantly restored.

In terms of the source countries / regions of imported goods, the source countries / regions where Chinese consumers purchase FMCG are relatively concentrated. As of the third quarter, the top five source countries / regions account for about 80% of the sales volume.

Chinese consumers' demand for imported products is still there. At this time, the fair will be a powerful bridge connecting imported goods with the demand of Chinese consumers.

The 21st century economic report reporter saw on the spot that many enterprises have signed up for the 4th ICIF. Pharmaceutical enterprises include AstraZeneca, Merck, Bayer, Johnson & Johnson, Siemens Medical, etc., while consumer goods enterprises include L'Oreal, king of flowers, Panasonic, tapestry, Unilever, etc. There are also many enterprises on the spot to inquire about the signing of contracts.

Under the epidemic situation, many countries have closed their borders and restricted cross-border travel, which has brought pressure on the supply chain. At the same time, it has also affected the development of some indirect channels (such as purchasing on behalf of others), resulting in different degrees of impact on imported infant milk powder and cosmetics.

For imported milk powder and beauty brands, the Expo is a platform and opportunity for direct dialogue with Chinese distributors and consumers. Access, a brand management company, has introduced a number of overseas brands to display at the Expo, including the latest brand Savar, viva glow, Australian oral beauty brand, thalissi, a Spanish skin care brand.

?