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Online buyers help to sustain growth of daily goods

ONLINE purchase of fast moving consumer goods is outpacing overall FMCG market, a latest report shows, highlighting that global sales of groceries through e-commerce channels reached US$48 billion in the 12 months ended June this year, adding 15 percent from the year earlier period.

The third annual Future of E-commerce in FMCG study released by WPP's data management unit Kantar shows that globally e-commerce now accounts for 4.4 percent of all FMCG sales, with China the fastest growth of 47 percent over the period.

The FMCG market as a whole has been losing momentum, and in China the overall FMCG market growth is merely 3 percent, as people are looking for more convenience while shopping.

Established online retailers such as Tmall and are also aggressively expanding their online supermarket businesses.

"Online grocery market size is expected to grow to make up 9 percent of the FMCG market and be worth US$150 billion by 2025,” commented Stéphane Roger, Global Shopper and Retail Director at Kantar Worldpanel. . “With new entrants such as Amazon, the industry is facing a shake-up.”

Kantar Worldpanel General Manager in China Jason Yu expect online FMCG will grow to become a US$36 billion business with a contribution of 15 percent to the total market by 2025, compared to the current 4.2 percent value share.

The survey also reveals purchasing preference for online shoppers, for example, Chinese consumers' average spending on online groceries stood at US$20 compared to an average of in-store bill of US$15.

Once shoppers have begun shopping online they are more likely to continue doing so.

Among Chinese consumers who have purchased FMCG through online retailers, they allocate 7.5 percent of overall spending towards e-commerce, resulting in fewer trips to physical stores.


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