NIELSEN: THE FMCG MARKET IS CHANGING BEFORE OUR EYES

Last year, real incomes of Russians fell by 0.2%. The consumer confidence index is falling.

It would seem unclear why retail trade turnover grew in 2018 by 2.6%, while the FMCG market volume - by 5.9%, of which 3.1% was due to real consumption. Nielsen believes that the retail landscape is changing due to a growing number of sales channels, online commerce, and intense competition.

Here is some of Nielsen’s basic research data:

• 75% of FMCG accounts for food retail.
• In the fourth quarter of last year, sales in supermarkets, hypermarkets, and convenience stores increased by 7.3%, while sales in the traditional trade channel rose only 1.9%.
• The total revenue of FMCG product manufacturers increased by 9.2%.
• Private label sales were down by 4.4% in money terms; in supermarkets, sales of private labels were down by 1%.

Marina Volkova, Analytics and Consulting Director at Nielsen Russia: "The FMCG retail sector continues to transform actively. Recently, one of the major players launched an online store, someone else announced a new platform for cross-border trade in everyday goods, and someone else introduced a subscription plan for order delivery. Some players discovered new niches for themselves by investing in parcel terminals, where you can pick up an online order, and by launching self-service points in business centers. And we should not forget about foodtech companies, which are seriously encroaching on FMCG’s traditional territory: their revenues and audience continues to grow at double-digit rates."