Table of Contents
Overview
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- What you need to know
- Covered in this report
- Sub-group definitions
Executive Summary
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- The market
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- Figure 1: Best – and worst-case forecast of total grocery retail (online and offline), China, 2013-23
- Companies and brands
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- Figure 2: Top 10 comprehensive offline retailing groups sales value, China, 2018
- The consumer
- Family status is one of the most influential factors on the grocery shopper profile
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- Figure 3: Repertoire analysis of grocery shoppers – by family status, August 2018
- Consumers show preference to buy different products from different grocery channels
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- Figure 4: Grocery shopping channel, August 2018
- Consumers choose retailers for different reasons however mainly driven by product selection, convenience and price
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- Figure 5: Reasons for choosing different channels, August 2018
- More people shop without a shopping list
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- Figure 6: Grocery shopping behaviour, by generation, August 2018
- Online shopping experience becomes as important as product quality
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- Figure 7: Top factors preventing consumers from buying online, August 2018
- What we think
Issues and Insights
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- Different retailers targeting different consumption occasions
- The facts
- The implications
- Driving consumers’ experience of shopping crucial for retailers
- The facts
- The implications
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- Figure 8: Waitrose launched healthy eating specialist in store
- “Old style” has not entirely gone out of style for young consumers
- The facts
- The implications
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- Figure 9: Consumer shopping at Wanyou market
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- Figure 10: Pike Place promotion about its Christmas activities, 2018, US
The Market – What You Need to Know
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- Market growth slow down
- Shift in consumer spending with BPC taking more share
- Online grocery retail grows steadily and creates new challenges
- Macro factors have significant impact on the market
Market Size, Segmentation and Forecast
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- Grocery retail market will slowdown in growth
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- Figure 11: Best – and worst-case forecast of total grocery retail (online and offline), China, 2013-23
- Figure 12: Grocery market share by category, China, 2018 est
- Different grocery segments face different levels of slowdown in growth rate
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- Figure 13: Total grocery retail value sales and CAGR by sector, China, 2013-23
- Figure 14: Share of grocery retail sales by category, China, 2013-23
- 16% grocery shopping takes place online
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- Figure 15: Online VS offline grocery value sales, China, 2013-18
- Figure 16: Online grocery value sales share by segments, China, 2018 (est)
Market Drivers
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- Domestic economy to slow in future
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- Figure 17: Personal disposable income of Chinese consumers per personal, 2017-18 Q1-Q3, China
- Changes in consumers’ lifestyles
- Consumer sophistication
- Complication of the retailers
Key Players – What You Need to Know
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- Competition remains intense for offline retailers
- Online and offline retailers are merging into new era
- Innovation on a physical level and beyond
Company Sales of Key Competitors
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- Annual sales of leading players
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- Figure 18: Top 10 comprehensive offline retailing groups sales value, China, 2018
Competitive Strategies
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- Collaboration of online giants and traditional leaders to move towards new retailing era
- Amplify online retailers unique feature as media platform
- Small brick-and-mortar compete by being experience-driven
- Loyalty programmes based on multiple consumption scenarios enhance consumers’ shopping experience
- Pingduoduo’s growth shows how grocery retailing can leverage social media
Who’s Innovating?
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- Ole experimenting new ways of automated shopping
- Hema brings total transparency in product sourcing
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- Figure 19: Hema products with QR code to track product information, China, 2018
- What’s new in global markets?
- Seamless retailing for the grocery sector
- Increasingly seeking of eco-friendly consumption
- Individualizing the grocery shopping for different consumers
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- Figure 20: Butternut Curry from Tesco’s vegan range “Wicked Kitchen”. UK, 2018
- Humanizing the shopping experience
The Consumer – What You Need to Know
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- Singles buy fewer types of groceries
- Supermarkets lead, but are increasingly challenged by online retailers in non-fresh product sectors
- Product selection, price and convenience are key factors driving purchase
- Young consumers: shop with a list and demand more in-store activities
- Concerns over online shopping shift from product quality to service elements
Grocery Shopper Profile - Who Are the Grocery Shoppers
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- Consumers with larger size of family household buy more types of groceries
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- Figure 21: Repertoire analysis of grocery shoppers – by family status, August 2018
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- Figure 22: Incidence of shopping on different grocery categories, by marital status, August 2018
- Gender bias still observable, but less paramount in BPC and household care
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- Figure 23: Incidence of shopping on different grocery categories, by gender, August 2018
Grocery Shopping Channels
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- Super/hypermarkets still take the lead
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- Figure 24: Grocery shopping channel, August 2018
- Warehouse retailers are losing appeal as bulk-buy fits less well with consumer lifestyles
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- Figure 25: Incidence of consumers buying grocery from warehouse stores, by demographic, August 2018
- Wet market is still relevant, especially for young consumers
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- Figure 26: Incidence of consumers shopping in wet markets, by generation, August 2018
- C-stores become a critical touch point for reaching young consumers
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- Figure 27: Incidence of consumers shopping in C-stores, by demographic, August 2018
- Competition between super/hypermarkets and online retailers is fiercest in BPC and household care
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- Figure 28: Incidence of consumers buying grocery via offline and online comprehensive channels, August 2018
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- Figure 29: Incidence of consumers buying grocery via offline and online comprehensive channels, August 2018
- New retailers such as Hema and Super Species are already grabbing shares in food shopping
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- Figure 30: Incidence of consumers buying grocery via new retail channels, August 2018
- Social e-commerce and food delivery apps starting to excel in certain product categories
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- Figure 31: Incidence of consumers buying grocery via social ecommerce channels and food delivery app, August 2018
Why Choosing Different Channels
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- Retailers need to be competitive on three things: choice, price and convenience
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- Figure 32: Reasons for choosing different channels, August 2018
- Strengths and weaknesses of each channel
- Offline comprehensive retailers
- C-stores
- Wet markets
- Online channels
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- Figure 33: “more imported goods or premium goods” as reason to choose grocery shopping channels, by city tier, August 2018
- O2O channels
Grocery Shopping Attitudes
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- Eco-friendly and organic factors act positive
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- Figure 34: Attitudes towards grocery shopping, August 2018
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- Figure 35: Willingness to pay more, by age generation, August 2018
- Figure 36: Attitudes towards a price premium, by shopping planning behaviour of shoppers, August 2018
- Consumers born in the 90s plan purchases and are responsive to promotions
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- Figure 37: Attitudes towards a shopping planning, by generations, August 2018
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- Figure 38: Methods for saving, by selected demographics, August 2018
- Consumers aged 20-24 and consumers with kids are experience seekers
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- Figure 39: experience seekers, by age, August 2018
Attitudes towards Online Grocery Shopping
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- Online retailers battle on product price and variety
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- Figure 40: Top factors driving consumers to buy online, August 2018
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- Figure 41: Aveeno Tmall Super Brand Day offline event
- Concerns for online shopping starts to shift towards in-direct-relevant with products
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- Figure 42: Top factors preventing consumers from buying online, August 2018
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- Figure 43: Factors prevent consumers to buy online, by selected demographics, August 2018
Meet the Mintropolitans
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- Mintropolitans seem more likely to be advanced grocery shoppers
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- Figure 44: Incidence of shopping at different channels, by consumer classification, August 2018
- Mintropolitans are more likely to pay for premium pricesr for grocery shopping
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- Figure 45: Attitudes towards a price premium, by mintropolitans and non-mintropolitans, August 2018
Appendix – Market Segmentation
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- Figure 46: Total value sales of grocery retail market by segments, China, 2013-23
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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