2017亚洲品牌力量（英文版）_26页_5mb

ASIA'S RISING RETAILERS AND FMCG GROWTH

Core Content

Asia is witnessing a significant transformation in the FMCG (Fast-Moving Consumer Goods) sector, driven by the rapid growth of local retailers and their strategic partnerships with FMCG brands. These retailers are reshaping market dynamics by offering more convenient, accessible, and community-focused shopping experiences that cater to the evolving needs of Asian consumers.

Main Views

1. Local Brands Outperform Multinationals

• Asian markets are dominated by local FMCG brands that have outpaced multinational competitors.
• These brands are deeply attuned to the emotional and functional needs of consumers.
• They often offer more accessible pricing and innovative strategies tailored to local demographics.

2. Partnerships Between Retailers and Brands

• The success of local FMCG brands is closely tied to partnerships with local retailers.
• These partnerships enhance brand mental availability and support innovative retail strategies.
• Retailers act as gatekeepers to growth, enabling brands to reach new customer segments.

3. Demographic Shifts and Shopping Behavior

• Rapid demographic changes, including aging populations and urbanization, are reshaping shopping habits.
• Smaller households and working populations are driving demand for convenience and fresh food.
• These changes require retailers to adapt their offerings and formats to meet the needs of their customers.

4. Adapting to Fresh Food and Ready Meals

• Fresh food and ready meals are becoming increasingly important in Asian retail.
• Retailers like Yonghui in China and PX Mart in Taiwan are leveraging these trends to expand their market share.
• Convenience stores and minimarts are playing a key role in meeting this demand.

5. Smaller Package Sizes and Consumer Experimentation

• The trend towards smaller, single-use packages is growing in popularity.
• This format encourages experimentation with different brands and products.
• It also supports more affordable pricing and helps retailers compete in crowded markets.

6. Community-Centric Retail Models

• Convenience stores and minimarts are becoming community hubs.
• They provide not only retail services but also social and digital connectivity.
• Examples include Alfamart in Indonesia, Wumart in China, and 7-Eleven in Thailand.

7. The Role of Technology in Retail Integration

• Technology is playing a vital role in integrating online and offline shopping experiences.
• Digital innovations such as apps, mobile payments, and geo-targeted promotions are enhancing customer engagement and loyalty.
• These tools support both convenience and personalization, making the shopping journey more seamless.

8. Supply Chain Optimisation Through Digital Tools

• Digital integration helps optimize supply chains and manage product mixes effectively.
• Retailers use data analytics and online platforms to adjust their offerings based on consumer behavior and preferences.
• This ensures that products are available where and when consumers need them.

9. Differentiated Product Offerings for Ageing Populations

• Ageing populations are not a monolithic group; they have diverse needs and preferences.
• Retailers like Olive Young in Korea and PX Mart in Taiwan are developing differentiated product ranges that cater to these varied needs.
• Healthier, more sustainable options are becoming more important for this demographic.

10. Rural and Urban Market Opportunities

• Brands should not overlook the growing purchasing power in rural areas.
• Local retailers are increasingly important in both urban and rural markets, especially in the context of economic and social changes.

Key Information

• Yonghui (China): A fresh food supermarket that has expanded to 580 stores across 19 provinces by adapting to changing eating habits.
• PX Mart (Taiwan): Has diversified its product range and introduced smaller package sizes to appeal to younger, urban shoppers.
• 99 Speedmart (Malaysia): Has focused on smaller, more accessible package sizes and leverages centralized purchasing to keep prices low.
• Alfamart (Indonesia): Acts as a "True Community Store," offering a wide range of FMCG products and integrating digital services like app-based ordering and CRM data.
• Saigon Co.op (Vietnam): Introduced Co.op Smile, a hybrid store format that blends street shops and convenience stores, and is expanding through franchising.
• 7-Eleven (Thailand): Has evolved into a community hub by offering a wide range of services, including bill payments, cinema bookings, and eCommerce pick-up.
• Wumart (China): Offers community services like haircuts and laundry in addition to fresh food, and has developed a digital platform (Dmall) to enhance customer experience and streamline payments.

Conclusion

The success of Asian FMCG brands is increasingly dependent on their ability to form strong partnerships with local retailers and adapt to demographic and behavioral shifts. By focusing on convenience, community, and technology, these retailers are not only reshaping the retail landscape but also driving FMCG growth in ways that multinational brands have yet to fully replicate. For brands looking to succeed in Asia, understanding and aligning with these local retail strategies is essential.