Report: Winning omnichannel to grow in retail

The fragmentation of the FMCG landscape continues apace. Which channels are doing best?
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Escalator in shopping mall
Stéphane Roger
Stéphane
Roger

Global Shopper & Retail Director, Spain

In 2018, 96% of FMCG growth took place outside hyper and supermarkets, e-commerce grew 20%, discounters have been appearing almost everywhere, and new hybrid retail formats are becoming more common place around the globe.

While GDP growth has been stablein recent years, growing on average +3.5% per year, FMCG growth has been slowing—from +6% to +2.1% since 2012. The table below may suggest growth in every region, but the data alone does not always tell the whole story. In fact, 2018 saw a continued slowdown in every market we’ve analysed—other than China Mainland and the US.

FMCG value growth (%)

2017
(vs 2016)

2018
(vs 2017)

Global

1.9%

2.1%

Africa & Middle East

8.8%

6.1%

Asia

3.1%

2.8%

Eastern Europe

5.3%

1.2%

Western Europe

2.7%

1.7%

Latin America

5.7%

3.9%

US

0.9%

1.6%

Source: Kantar

The fragmentation of the FMCG landscape continues apace. Across the channels we’ve analysed, there is an obvious divide between those doing well and those struggling to keep up. E-commerce is far outstripping any other medium—achieving 20.3% growth in 2018, accelerating on its 15% growth in 2017.

% Global value share
by channel

2017

2018

2018 Growth
(vs 2017)

Forecast
2025

E-commerce

4.3

5.1

20.3

10.1

Hyper/Super

56.9

55.8

0.1

48.0

Discounters

10.3

10.6

5.7

13.4

Convenience

4.1

4.1

2.5

4.4

Cash & carry

3.3

3.4

5.4

5.1

Traditional trade

8.4

8.4

2.4

8.3

Drugstore & pharmacy

6.7

6.6

1.0

6.2

Others

6.0

6.0

n/a

4.5

Source: Kantar

Our publication Winning Omnichannel – Finding growth in reinvented retail explores where to grow and how to win in a context in which global sales grew just 2.1%. This is our most comprehensive Omnichannel study yet, based on data from across 47 countries, representing 83% of GDP providing a unique picture of retail & shopper dynamics across the globe.

Winning OmniChannel cover

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