Gartner L2 Digital IQ Index  March 31, 2015

Beverages: China 2015

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The 2015 Digital IQ Index: Beverages China assesses the digital performance of 66 Beverage brands in China, spanning eight product categories. Today, the market for fast-moving consumer goods in China looks less welcoming to outsiders, with 60 percent of foreign brands reporting declining market share. In response, global beverage brands are expanding regional product offerings, evolving joint ventures, or engaging in acquisition binges—underscoring the lack of competitive advantage enjoyed by foreign brands in adjacent segments (e.g., packaged food, personal care, and home care). This study examines brand efforts in the site and e-commerce, digital marketing, social media, and mobile dimensions, with a particular focus on brand performances across leading e-tailers and online grocery outlets.

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Beverages: China 2015

March 31, 2015

Today, the market for fast-moving consumer goods in China looks less welcoming to outsiders than it did four years ago. 60 percent of foreign brands report declining market share and, challenged by the success of local players, The Coca-Cola Company and PepsiCo have seen their combined share of soft drink volume drop 4.6 percent since 2009. Yet, Chinese shoppers report the highest willingness among global consumers to purchase online in 18 of 22 product categories. In the Food & Beverage segment, purchase intent in China has jumped to 57 percent and to 34 percent in Alcoholic Drinks. Online spending in the Food & Drink segment is expected to more than triple by 2019, to roughly $35 billion dollars. Unique consumer behavior coupled with unfamiliar digital platforms complicates marketing investments in China. However there is opportunity for brands committed to understanding the digital ecosystem. New and established platforms are vying for position across Chinese cities. Since its launch in 2012, Tmall Supermarket has consolidated items carried by multiple merchants into a unified storefront, forcing a new approach to logistics. In May 2014, Amazon invested $20 million in online grocer Yummy77—the retail giant’s first investment in a Chinese company. In January 2015, Yihaodian announced it had reached nearly 90 million registered users and doubled product selection to more than eight million SKUs. Global Beverage brands will either prepare for these new modes of online disruption—or watch the opportunity in China shift to more agile local brands. This study attempts to quantify the digital competence of 66 beverage brands across eight categories in the Chinese market. Download the full study here:

L2 Research Briefing


[codepeople-post-map] At this research briefing, L2 Co-founder and Head of Research Maureen Mullen will summarize insights gleaned from a year’s worth of research and education while giving member brands a window into 2016 predictions. The briefing will include data-driven insights, trends and best practices specific to the Asian markets to help brands make digital investment decisions.

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