P&G, Yili and Mengniu top brands in reaching Chinese consumers, survey finds
Procter & Gamble, Inner Mongolia Yili and China Mengniu Dairy topped the ranks of fast moving consumer goods (FMCG) companies that reached the most Chinese households in 2016, a survey found.
The country’s two biggest dairy giants – Yili and Mengniu – each reached 146 million urban Chinese families in the 52 weeks ended October 7, meaning 88 per cent of households in Chinese cities had purchased at least one item from the two brands, data from retail marketing data provider Kantar China found.
Among the top 10 companies boasting the biggest Chinese customer base, Cola Cola and Master Kong were the only two whose market penetration had diminished in 2016. with each dipping 0.9 per cent, according to the report issued on Thursday.
Chinese consumers yearning for a healthier lifestyle bolstered demand for premium dairy products, but battered demand for instant noodles and beer – commonly seen as contributing to health problems like obesity.
Eight years after the 2008 Chinese milk scandal that damaged the reputation of Chinese food exports and propelled a consolidation in the domestic dairy sector, consumers have built up some confidence in home-grown players that partner with western peers.
Meanwhile, Yili inked deals with American dairy farmers and invested in baby formula projects in New Zealand, aiming to source milk directly from overseas. It also splashed out millions of yuan to make an appearance in the Hollywood blockbuster movie Transformers 4.
Official figures indicated the combined market share of domestic infant formula brands in China increased to 53 per cent in 2015 from 40-45 per cent from 2008 to 2014.
Both Mengniu and Yili had been struggling to recover from the milk scandal of 2008 when their liquid milk products were found tainted with poisonous chemicals. Soon after the contamination was discovered, the two firms were stripped of their status as “Chinese national brands”.