Fast-moving consumer goods attract online customers

Total revenue of the fast-moving consumer goods industry in Vietnam grew by 4.4%, but on the e-commerce channel alone it increased by 33%.

This figure was published in the annual report "The Future of E-commerce in FMCG" by Kantar Worldpanel.

Mr. Fabrice Carrasco - General Director of Kantar Worldpanel Vietnam, Indonesia and the Philippines commented: "E-commerce will become the trend of fast-moving consumer goods in the future, attracting many brands to participate and quickly completing business processes. Therefore, businesses need to be ready because the change will become a reality faster than you think".

The report also showed that globally, FMCG sales via e-commerce channels increased by 15% in the 12 months to June 2016, reaching US$48 billion, accounting for 4.4% of total sales revenue.

Mr. Stéphane Roger - Global Director of Shopping Behavior and Retail Channels of Kantar Worldpanel commented that overall, the fast-moving consumer goods industry is slowing down and users are looking for convenience through online shopping. This shopping channel is forecast to account for 9% of the total market share and reach a value of 150 billion USD by 2025 globally. Support from "giants" like Amazon will help users easily access the new trend.

“Online sales are likely to gradually cannibalize in-store sales. Therefore, retailers need to react quickly to develop a solid e-commerce model,” said Stéphane Roger.

South Korea, a leader in digital electronics, is now the world’s largest online FMCG market. China has the strongest growth rate in 12 months, up to 47%, accounting for 4.2% of the total online market share of the global FMCG sector.

Most European countries have been relatively slow to adopt this format, with the exception of the UK (6.9% market share) and France (5.3%). The situation is similar in Latin American countries.

Kantar Worldpanel research shows that once consumers start shopping online, they are more likely to continue doing so. This group of users spend more money online every year, leading to a decline in the number of times they shop in physical stores.

50% of online FMCG sales are beauty products, growing 8.1% over the past year. Online shopping basket values ​​are growing, with shoppers spending more per transaction online than they would on a traditional store. Additionally, 55% of online shoppers will use their previous shopping list for their next purchase, so brands need to focus their efforts on getting on this list.

According to VNE