China's consumer goods industry to grow by $200 billion
Updated: 2016-03-03 18:24
By Chen Yingqun(chinadaily.com.cn)
China's consumer goods and services industry will grow by $200 billion by 2020, accounting for about 60 percent of growth in Asia, a report said.
In"The future is now: understanding the new Asian consumer", professional services company Accenture estimates that the consumer goods and services industry will grow by as much as $700 billion globally by 2020, with nearly 50 percent, or $340 billion, coming from Asia – specifically China, Indonesia, India, Singapore and Thailand.
Consumer packaged goods companies must fully embrace digital commerce or risk losing out to newer industry players in the battle for an estimated $340 billion worth of market growth in Asia Pacific, the report said.
If these companies don't take action now, they risk losing out on the new generation of consumers. They must couple traditional models with new ones where consumer engagement is digital and one2one, social influence is perceived to be the trustworthy source and shopping is one click away, said Fabio Vacirca, senior managing director of Accenture's products operating group in Asia Pacific.
"The entire sales and marketing ecosystem is changing dramatically on the back of the new generation of consumers and pervasive digital technologies. In Asian markets the change is faster and in many cases it means leapfrogging the traditional models," he says.
The report estimates that retail sales across Asia Pacific's booming consumer markets are on course to top $10 trillion by 2018, with approximately one-quarter coming from digital commerce.
Despite the heavy influence from e-tailers and online marketplaces, the digital commerce market in the Asia Pacific region remains under-penetrated for consumer packaged goods companies, particularly in the grocery-product category.
In addition, using knowledge of consumer preferences and evolving demands, leading distributors in the market, such as Alibaba, have been adapting by reinventing and tailoring offerings to redefine the value chain and make the consumer their focal point.
Despite the market seeing some digital transformation by packaged goods companies, it is still not enough for many consumers. Accenture's research shows that consumers are not satisfied with their purchase journeys.
Today's top"ask", according to the report, is for a single platform where they can enjoy unique experiences and enable impulse decisions, receive tailored product recommendations and where they are always connected to their favorite brands.
This represents an outstanding opportunity for traditional companies to capture the next wave of growth. By focusing on providing stronger digital commerce they can bridge existing gaps in consumers' purchase journeys and provide the seamless shopping experiences they're looking for.