Table of Contents
Executive Summary
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- The market
- Growth slower than overall retail sales
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- Figure 1: China – Total market value for physical store grocery retail sales, 2011-21
- Companies and brands
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- Figure 2: China – Top 10 supermarket and hypermarket retailers’ value market share, 2014 and 2015
- Market shares being squeezed
- The consumer
- Grocery shopping now as much online as in-store
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- Figure 3: Retail channels shopped from by consumers in the past six months, July 2016
- Consumers trying online fresh, chilled and frozen food shopping
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- Figure 4: Products bought from supermarkets and/or hypermarkets and/or online retailers in the last six months, July 2016
- Convenience remains the key channel choice motive
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- Figure 5: Reasons for choosing to shop at supermarkets, hypermarkets or online grocers in the last six months, July 2016
- Food safety remains the top differentiator
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- Figure 6: Factors important to consumers when deciding which supermarket, hypermarket or online grocery retailer to shop at, July 2016
- Grocery shopping can still be an enjoyable experience
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- Figure 7: Consumer preferences when shopping at supermarket, hypermarket or online grocery retailers, July 2016
- Private label proves its potential
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- Figure 8: Consumer attitudes towards shopping at supermarket, hypermarket or online grocery retailers, July 2016
- Key consumer groups
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- Figure 9: Key consumer groups based on consumer attitudes towards shopping at supermarket, hypermarket or online grocery retailers, July 2016
- What we think
Issues and Insights
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- What future for physical stores in an online world?
- The facts
- The implications
- The chill-chain challenge
- The facts
- The implications
- The mobile grocer
- The facts
- The implications
- Making grocery shopping pleasant
- The facts
- The implications
The Market – What You Need to Know
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- Slow but steady ahead
- The rise of online grocery
- Online, mobile, social and virtual
- First city, then suburb, now countryside
Market Size and Forecast
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- Physical stores facing slowing growth
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- Figure 10: China – Total market value for physical store grocery retail sales, 2011-21
- Online impact
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- Figure 11: China – Total online retail market value, 2011-21
Market Segmentation
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- The rise of online grocery
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- Figure 12: China – Grocery retail outlet numbers and sales value, by sector, including online grocery retail, 2012-16
Channels to Market
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- The push to grow online grocery
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- Figure 13: China – Online retail sales value, by sector, 2012-16
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- Figure 14: China – Online retail sales value % share, by sector, including online grocery retail, 2012-16
- Creating new competition
- Social media shopping
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- Figure 15: Monthly active users of QQ, Qzone, WeChat and Sina Weibo, December 2013-15
- Can retailer-owned shopping sites succeed?
Market Drivers
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- The wider consumer economy
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- Figure 16: China – Total retail sales and consumer expenditure share of GDP, 2011-15
- The pocket supermarket
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- Figure 17: China – Mobile internet users, shoppers and mobile online shopping market value, 2011-16
- Opening up the rural market
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- Figure 18: China – Rural population and poverty, 2005-25
- Figure 19: Average rural and urban per capita disposable household income, 2010-14
- Rural online
- Taobao villages
Companies and Brands – What You Need to Know
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- Leading chains losing share
- Targeting higher value and wider spread
Market Share
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- Market shares being squeezed
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- Figure 20: China – Top 10 supermarket and hypermarket retailers’ value market share, 2014 and 2015
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- Figure 21: China – Top 10 grocery retailers’ value retail turnover, 2014 and 2015
- China Resources leading by store numbers
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- Figure 22: China – Top 10 grocery retailers’ market share, by store numbers, 2014 and 2015
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- Figure 23: China – Top 10 grocery retailers’ outlet numbers, 2014 and 2015
- Ranking by revenue per outlet
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- Figure 24: China – Top 10 grocery retailers’ average sales revenue per outlet, 2014 and 2015
- Ranking of leading online retailers
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- Figure 25: China – Leading online B2C retail portals’ share of market value, 2014 and 2015
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- Figure 26: China – Top three online B2C retail portals’ share of market value, 2014 and 2015
Competitive Strategies
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- Bricks-to-clicks cooperation
- Bricks-to-clicks versus clicks-to-bricks
- Food companies going direct to consumers online
- The rise of the high-end greengrocers
- Pagoda: China’s premier greengrocer chain
- FruitDay: financing greater expansion
- Private label
- High-end supermarkets
- Cross-border online competition
- Geographical expansion
- Could mobile grocery trucks make a comeback?
The Consumer – What You Need to Know
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- Grocery goes online
- Fresh and frozen food find online favour
- Convenience remains key to channel choice
- Food safety remains paramount
- Accentuate the enjoyment
- Promoting private label
- Key consumer groups
Channels Used for Grocery Shopping
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- Grocery goes online
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- Figure 27: Retail channels shopped from by consumers in the past six months, July 2016
- The online/offline grocery gender and age gap
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- Figure 28: Retail channels shopped from by consumers in the past six months, by age and gender, July 2016
What People Buy by Channel
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- Online makes inroads into fresh and frozen food sales
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- Figure 29: Products bought from online retailers in the last six months, compared with the previous year, July 2015 and July 2016
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- Figure 30: Products bought from supermarkets and/or hypermarkets and/or online retailers in the last six months, July 2016
- Older women lead fresh food online shopping
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- Figure 31: Products bought from online retailers for home delivery in the last six months, by gender and age, July 2016
- Online food shopping driven by income
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- Figure 32: Products bought from supermarkets and/or hypermarkets and/or online retailers in the last six months, by monthly household income group, July 2016
Reasons for Shopping
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- Convenience, convenience, convenience!
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- Figure 33: Reasons for choosing to shop at supermarkets, hypermarkets or online grocers in the last six months, July 2016
- Shopping reasons by gender and age group
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- Figure 34: Reasons for choosing to shop at supermarkets, hypermarkets or online grocers in the last six months, by gender and age, July 2016
Factors Influencing where People Shop
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- Food safety sensitivity increases
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- Figure 35: Factors important to consumers when deciding which supermarket, hypermarket or online grocery retailer to shop at, by important choice factors when deciding which supermarkets/hypermarkets to visit, July 2016 and July 2015
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- Figure 36: Factors important to consumers when deciding which supermarket, hypermarket or online grocery retailer to shop at, July 2016
- Key choice factors by income group
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- Figure 37: Factors important to consumers when deciding which supermarket, hypermarket or online grocery retailer to shop at, by monthly household income group, July 2016
Shopping Preferences
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- Most people still enjoy shopping
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- Figure 38: Consumer preferences when shopping at supermarket, hypermarket or online grocery retailers, July 2016
- Preferences differ sharply by gender
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- Figure 39: Consumer preferences when shopping at supermarket, hypermarket or online grocery retailers, by gender and age, July 2016
- High income, high integration
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- Figure 40: Consumer preferences when shopping at supermarket, hypermarket or online grocery retailers, by monthly household income group, July 2016
Attitudes towards Grocery Shopping
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- Big potential for private label
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- Figure 41: Consumer attitudes towards shopping at supermarket, hypermarket or online grocery retailers, July 2016
- Attitudes towards online grocery shopping by income
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- Figure 42: Consumer attitudes towards mobile grocery shopping at supermarket, hypermarket or online grocery retailers, by monthly household income group, July 2016
- Attitudes towards speed and convenience by income
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- Figure 43: Consumer attitudes towards convenience/speed of grocery shopping at supermarket, hypermarket or online grocery retailers, by monthly household income group, July 2016
- Attitudes towards quality by income
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- Figure 44: Consumer attitudes towards quality of grocery shopping at supermarket, hypermarket or online grocery retailers, by monthly household income group, July 2016
- Attitudes towards service and loyalty by income
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- Figure 45: Consumer attitudes towards service and loyalty when grocery shopping at supermarket, hypermarket or online grocery retailers, by monthly household income group, July 2016
Key Consumer Groups
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- Key consumer groups
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- Figure 46: Key consumer groups based on consumer attitudes towards shopping at supermarket, hypermarket or online grocery retailers, July 2016
- Fresh produce seekers
- Who they are
- What they like
- How to market to them
- Convenience-driven shoppers
- Who they are
- What they like
- How to market to them
- Quality-driven shoppers
- Who they are
- What they like
- How to market to them
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- Figure 47: Key consumer groups based on consumer attitudes towards shopping at supermarket, hypermarket or online grocery retailers, by consumer segmentation, July 2016
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Total luxury retail market value
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- Figure 48: China – Total grocery outlet retail sales value, 2011-21
- Forecast Methodology
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