Domestic competition for foreign fast-moving consumer goods (FMCG) in China is growing, but branding expert Ashley Dudarenok expects there will still be a market for those foreign brands, she writes in Dao Insights. “To sum it up, the FMCG market in China in 2023 is very fluid,” she writes.
FMCG brands have had a difficult journey in China since the onset of the COVID-19 pandemic. The pandemic has resulted in wide-ranging disruptions to the FMCG industry in China, from supply chain disruptions down to decreasing demand for products and services. While the pandemic has harmed foreign FMCG brands in China, the good news is that the market is beginning to recover in 2023 and is projected to continue to do so in the years ahead.
In 2023 the Chinese government seems to also start encouraging foreign investment and brands to enter the country to cater to its rapidly growing market. While there is an ongoing rise of the national wave or “Guochao,” one simply cannot deny the value and quality that foreign goods can still offer.
Despite the challenging environment, foreign FMCG brands in China adapted to the changing market conditions quickly. Companies such as Unilever, Nestle, and Procter & Gamble were able to quickly ramp up production and introduce new products to meet the changing consumer needs.
Additionally, they expanded their online presence via virtual shopping experiences and delivery services, as well as offering discounts. This allowed them to continue to reach consumers and maintain their market share despite the pandemic. Foreign FMCG brands are still often seen as premium and appealing to Chinese consumers seeking high-quality products…
To sum it up, the FMCG market in China in 2023 is very fluid. The market itself, ever-changing consumer preferences and trends, and domestic or foreign competitors are always changing. You can learn more about the Chinese market and how the market has changed during the pandemic in the recently released 650-page-long 2022 Mega Report: China E-Commerce & Digital Space. International brands must watch and monitor the relevant trends in the Chinese consumer market to have a baseline on what sticks or what doesn’t. Foreign FMCG companies will remain a strong player in the Chinese FMCG scene, and it’s on its way to steady recovery.
Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers’ request form.
Are you looking for more branding experts at the China Speakers Bureau? Do check out this list.