Staff Reporters
Apr 29, 2021

Too many SKUs: 70% of bottled teas account for 2% of sales

TOP OF THE CHARTS: A glut of underperforming product variants is hogging valuable shelf space in Hong Kong and other markets, according to NielsenIQ.

Too many SKUs: 70% of bottled teas account for 2% of sales

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Source: NielsenIQ

More from this source:

  • The percentage of <2% product variants is also bad in other categories in Hong Kong, such as sanitary protection (56%) and sauce (47%).
  • It's not just Hong Kong, either: According to Nielsen's report, 75% of SKUs contribute to less than 2% of category sales across the top 15 emerging and developing markets (Russia, Singapore, Thailand, India, Indonesia, Turkey, UAE, Saudi Arabia, Greece, Malaysia, Australia, Hong Kong, China, Vietnam, Philippines). Beverages, instant noodles, chocolate, and detergent are some of the most over-SKU'd categories.   
  • Studies by Bain & Company show that with a 10% to 20% SKU reduction, FMCG companies can achieve savings of up to 10% in production costs, a 10% reduction in supply chain costs, 10% lower inventory and optimisation of up to 5% in raw materials and packaging costs.
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Top of the Charts: Key data at a glance

 

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