Partnering with China’s retailers: A guide for consumer-goods companies
The Chinese consumer sector looks vastly different today compared with just five years ago. The retail environment—both offline and online—has shifted, consumers have become savvier omnichannel shoppers, and local consumer-packaged-goods (CPG) manufacturers are giving global players a run for their money. Growth among CPG companies slowed to below five percent in 2016, down from 15 percent in 2011. It’s a complex and fast-changing market that increasingly requires CPG companies to develop top-notch sales capabilities. Indeed, a recent survey indicates that CPG executives see key-account management (KAM) as the most critical capability for driving growth in China.
KAM in China, however, is a relatively new concept, and many CPG companies operating in the Chinese market are currently at a low level with regard to sales skills and technologies. And in a context where the balance of power between manufacturers and retailers is just about even, KAM dynamics and considerations are very different from those in Europe or North America. What will it take for a CPG sales organization to excel in China? In this article, we examine three trends shaping China’s consumer sector and their implications for key-account management. Mckinsey – Read more…