The latest study by Nielsen, the global measurement and data analytics company, shows that there has been an improvement of consumption willingness as China has effectively controlled the contagion, which will bring new vitality to domestic economic development.
Justin Sargent, president of Nielsen China, said: “Since the outbreak of the virus, China’s experience in fighting off the disease has been a barometer for the world. As people’s life gradually returns to normal, consumer-driven domestic demand is now recovering in China, which has injected optimism into the wider global market.”
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The retail industry has shown positive signs of recovery
Faced with the crisis, China’s economy and consumer market are extremely resilient. Taking the 2008 financial crisis as an example, China’s economy and FMCG industry rebounded rapidly after dropping during that period.
Justin Sargent said: “China’s consumer market has begun to show signs of recovery. Driven by a number of government policies aimed at spurring consumption, the retail industry continues to improve and new consumption momentum has emerged.”
According to data released by the National Bureau of Statistics, the total retail sales of consumer goods shrank 7.5 percent year-on-year in April, a decrease of 8.3 percentage points over the previous month. It showed consumption has been gradually picking up.
Kateryna Edelshtein, vice president of Nielsen China, said: “While we saw the decline of the overall retail business, a few industries have finally returned to growth and are stabilizing. FMCG posted positive growth of eight percent in April, mainly driven by online momentum.”
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Businesses like online shopping, online education, remote office, health and technology grew during the pandemic and are still developing. Online consumption remains popular.
Nielsen research showed FMCG online sales climbed 33 percent year-on-year in January and February, 32 percent in March and 43 percent in April. So far this year, the number increased 37 percent year-on-year, maintaining a growing momentum.
FMCG omnichannel sales rose 3 percent year-on-year in the first two months, fell 6 percent in March and went back to growth of 8 percent in April. So far this year, omnichannel sales grew 4 percent.
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