The future of e-Commerce in FMCG

Kantar Worldpanel 27/11/2017

Global e-commerce grocery market grows 30%. Online FMCG sales reach 0.5% share in Vietnam, recorded a significant uplift of 69% in comparison to last year.

Xem trước:
  • E-commerce growth outpaces the overall FMCG market in the 12 months to March 2017
  • Online sales now contribute 36% of global grocery growth
  • In 2025 e-commerce will represent 10% of all FMCG spend
  • South Korea and China will continue to lead the way of FMCG E-commerce growth
  • Vietnam e-commerce, though small in size, is among top growing e-commerce markets globally

Sales of groceries through e-commerce platforms grew by 30% in the 12 months to March 2017, according to the report “The Future of E-commerce in FMCG” by Kantar Worldpanel, published today.

The study shows that e-commerce now accounts for 4.6% of all FMCG sales globally. Whilst the e-commerce channel is growing, the FMCG market as a whole is sluggish, increasing just 1.3% during the same period. E-commerce now contributes to a record 36% of global FMCG growth and will continue to outpace growth in offline FMCG retail. “Our projections show that in 2025, online FMCG will be a USD 170 billion-dollar business and hold a 10% market share” says Stéphane Roger, Global Shopper and Retail Director at Kantar Worldpanel.

Global hotspots

In terms of absolute value growth, the top six contributors are all leading power economies, led by China and the US. The other top performing countries are South Korea, the UK, Japan and France. Last year, value increased by 52% in China, 41% in South Korea, 8% in the UK, 7% in France and 5% in Japan and in the US.

However, the online grocery sector is also expanding into new markets. There has been significant value growth, for example, in Thailand (+104%), Malaysia (+88%) and Vietnam (+69%) where e-commerce is in early stages.

In Vietnam, e-commerce channel has evolved thanks to booming internet usage and smartphone ownership along with massive investment of key retail players, and now takes 0.5% of the FMCG market in 4 key urban cities of Vietnam. The percentage of e-commerce shoppers grew from 5.4% to 8.8% of urban 4 cities population in the last year alone, and an online trip size is at triple value of an offline basket.

David Anjoubault - General Manager of Kantar Worldpanel Vietnam commented:

“Although the size of Vietnam e-commerce market is still small compared to other formats, it holds a strong potential because the value growth of e-commerce within FMCG is up to 69%, which makes Vietnam become one of the countries with the highest e-commerce growth rate in the world.

It’s now the critical time for investors to enter this promising market, while current retail giants should gradually move their offer online & take advantage of their brand equity with omni-channels strategy, to be successful and to defend their current position. On the whole, consumer trust and high logistics cost for delivery model are major challenges that need to be addressed by businesses in order to move Vietnam e-commerce forward”.

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