The biggest names in global fmcg are losing market share across the BRIC countries.
The world’s 50 biggest suppliers, excluding the four based in emerging markets, lost share in all four markets (Brazil -1.4 percentage points, India -1.3 points, China -0.7 points, Russia -0.4 points), according to the Global 50, a report produced for The Grocer by OC&C Strategy Consultants.
OC&C said the growing strength of local suppliers was a major factor behind the falling market share figures.
“The BRIC markets are fiercely competitive with strong local players in most categories who have been outcompeting the Global 50 through a combination of superior route to market, nimbler innovation and in some cases also a more aggressive stance on consolidating their positions through acquisitions,” said OC&C partner Will Hayllar.
The inclusion this year of Tingyi as the first Chinese company in the Global 50 reflects the increased power of local players. Tingyi has developed an enviable distribution network and also benefited from a partnership with PepsiCo.
The loss of market share for international players also reflects a deliberate focus on profitability, added Hayllar.
Emerging markets remain the main engine of Global 50 growth. Companies generating more than 50% of sales from Asia and Africa grew 3.6%, whereas those with less than 30% of their turnover from these regions experienced average growth of just 1.6%, said OC&C.