Growth slows but Asian FMCG brands gain on home ground

According to Kantar Worldpanel's Asia Brand Power 2015 report, local brands now attract 74 per cent of total FMCG spend, and grew their sales 8 per cent in the last year, compared with 4 per cent for global brands.

The brands that grew gained on average 685,000 new shoppers over the year, while the brands with declining sales lost 628,000 shoppers, indicating that increasing reach and penetration has a direct impact on sales growth.

Marcy Kou, Kantar Worldpanel’s chief executive for Asia, said the report showcases the Asian players that every ambitious brand should be aware of and inspired by.

“Local players are currently winning the game, and we’ve examined the journeys of those that have achieved the most significant sales growth and household penetration in their respective markets,” she said.

“Many have already expanded internationally. These brands come from a variety of sectors, but all are exceptional and should be proud of what they’ve achieved,” she added.

Kou pointed out that there are 4.4 billion consumers in Asia and the more of them brands can win as customers, the closer they’ll get to winning the battle for dominance in the FMCG market. 

Kantar Worldpanel has also identified the 10 Asian brands that grew their penetration the most within their home market in the last year, gaining an average of 5.4 million new shoppers*:

	Brand name	Country of origin	Owned by	Category	New shoppers gained in 2014
1	Bluemoon	China	Blue Moon	Fabric detergent	10.2m
2	Garuda	Indonesia	Garuda Food	Snacks, biscuits	8.9m
3	Teh Pucuk Harum	Indonesia	Pt. Mayora Indah Tbk	Ready-to-drink tea	7.6m
4	Teh Gelas	Indonesia	Orang Tua	Ready-to-drink tea	6.6m
5	Nihar	India	Marico	Hair care	5.5m
6	Sun Kara	Indonesia	Sambu Group	Coconut cream	5.5m
7	Bright	China	Bright Group	Dairy products	5.4m
8	Space 7	China	Heng An Group	Sanitary protection	4.9m
9	Tata	India	Tata	Salt, tea, spices	4.7m
10	Vinda	China	Vinda	Paper products	4.6m

*Analysis of the top 50 most-chosen brands in each of the nine Asian countries covered in the report

Other highlights of Kantar Worldpanel’s analysis include:

• The power of local brands is strongest in food and beverages categories, where they have claimed 85 per cent of the Asian market through their ability to cater to the local palate.
• In Korea, local brands claim 92 per cent of the FMCG market—the highest in all of Asia.
• Asia’s FMCG slowdown has been felt most acutely in China, where growth declined by a third from 15.8 per cent in 2011/12 to 5.4 per cent today. China is still responsible for 75 per cent of total FMCG growth in Asia, however.
• In China, consumers’ spending on local brands increased 7 per cent in the last year, compared with 3 per cent for global brands. 70 per cent of local FMCG players are growing their sales, compared with 50 per cent of the global brands operating in China. In terms of penetration, 44 per cent of Chinese brands increased their shopper base in the last year, compared to 33 per cent of global brands operating in the market.

Kantar Worldpanel has also identified the Top 10 Chinese brands that have grown their shopper base within China the most within the last year:*