Chinese shoppers turn to home-grown mainland brands

Domestic consumer goods makers on the mainland are gaining ground on global rivals with Chinese shoppers spending 7 per cent more on local brands last year compared to an increase of 3 per cent for foreign brands, a global market research study shows.

Kantar Worldpanel launched its Asia brand power report yesterday to chart the shift in the competitive landscape of the market for so-called fast-moving consumer goods - products sold quickly and at relatively low cost - in nine Asian countries including China.

Despite slowing growth, 70 per cent of local brands on the mainland recorded sales increases last year, while only 50 per cent of foreign brands in China did the same.

Some 44 per cent of mainland brands said they had expanded their customer base during the period, compared to 33 per cent of companies globally.

"The progress made by home-grown brands is significant," said Jason Yu, general manager of Kantar Worldpanel China, which surveyed around 300 major consumer brands on the mainland including food, beverage, personal and health care products.

Yu said mainland consumer brands had been doing a better job in adapting to market changes, understanding local shoppers' needs, penetrating online sales channels and establishing a widespread presence in lower-tier cities.