In the third quarter of 2024, Chinese consumers' spending on FMCG and T&D increased by 4.3% year-on-year, significantly up from the 0.9% growth rate in Q2. FMCG and T&D registered a year-on-year growth of 5.0% and 3.51%, respectively. The data was sourced from NIQ retail research and GfK retail monitoring data.
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GfK retail monitoring data indicates that sales in China's T&D market (technical consumer goods, home appliances, DIY and home improvement) grew by 3.51% year-on-year in the third quarter of 2024, marking a significant increase from the 1.13% growth rate in the first quarter.
Benedict Hong, Customer Success Lead of GfK China, states: 'Smart features and cost-effectiveness have become the core competitive advantages in the T&D market. Companies need to accurately grasp new consumer demands for scenarios and functions under Full View insights, quickly upgrade and iterate products, and continuously meet consumers' needs for convenience, performance, health, user-centred design, and sustainability.'
As the national trade-in subsidy policy takes root, the Chinese home appliance market saw a full rollout of this policy by the end of Q3, leading to a successful rebound in appliance categories, achieving a year-on-year growth of 1.4%. Among these, major appliances performed particularly well, with a year-on-year growth rate of 5.9%. According to GfK CMM data, retail sales of major appliances offline grew by 36.8% year-on-year in September 2024, significantly outpacing the overall offline home appliance market's growth of 34.6%. Online sales of major appliances increased by 24.3% year-on-year, also surpassing the overall online home appliance market growth of 13.2%. The performance of terminal sales indicates that the trade-in policy has positively impacted consumer replacement demand.
The DIY market declined by -5% in Q3 2024, with all product categories affected. Nevertheless, two sectors bucked the trend: furnishing/decoration grew by +2.8%, and gardening increased by +4.9%, driven by the strong performance of high-pressure cleaners (+38.7%) and mowers (+20.9%) in large DIY stores.
More information:
NIQ
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