Investment opportunities of China's FMCG market: the dawn of a recovery?
Jan-Feb sales data on dairy, condiment, sanitary pads and Baijiu industries
In our latest 8-minute video roundup of Chinese investment, we said that the recent tech rally of Chinese equities might have some short-term volatility. Although we're still bullish on Chinese equities, it's a good time to start looking for opportunities instead of chasing new highs for Chinese tech stocks.
In the last newsletter, we also mentioned that after the tech rally, there are some initial signs of positive sentiments spreading into broader sectors of Chinese equities, especially the consumer sectors. We mentioned a few good names to watch. In today's newsletter, we will continue this series and update you on other interesting opportunities in the consumer sectors, using our proprietary data to show recent trends.
The recent surge in China’s dairy stocks, triggered by Inner Mongolia’s groundbreaking fertility subsidy policy on 13 March, underscores the dynamic interplay between policy tailwinds and consumer demand in the essential goods sector. This has also drawn investors' attention to China's FMCG market — is it bottoming up? Are there any signs of recovery in demand and improvements in the competitive landscape? Which companies are outperforming their peers?
Against this backdrop, our analysis for January-February 2025, based on BigOne's exclusive offline supermarket data*, reveals emerging investment opportunities in China's dairy and condiment segments.
*BigOne Note: This article is based on BigOne Lab's China retail supermarket data. The offline supermarket sample includes an average of 70,000 to 80,000 active stores monthly, covering all 31 provinces in the country. These datasets track the operational status of various sectors and brands, including alcoholic beverages, daily necessities, and condiments. The following trends are derived from the BigOne offline supermarket sample and do not represent a prediction of overall company performance.
In our previous articles, we conducted many in-depth analyses leveraging this dataset, including the impacts and reactions of Nongfu Spring to the nationalism incidents last year, as well as the investment opportunities in the summer economy, among others. This content is exclusively available to our paid subscribers.