Market of FMCG and service sectors in China
Keywords:COVID-19, coronavirus, FMCG, analysis, e-commerce, service sector.
Introduction. The fast-moving consumer goods (FMCG) industry is one of the basic ones for the existence of society and almost the first industry that directly felt the impact of the corona crisis and needed prompt adaptation.
Problem. China has been named the undisputed leader in economic growth over the past few years, so analyzing the impact of the pandemic on the underlying sectors of the economy is an important aspect to study this country.
The aim of the article is to determine the state and trends of the impact of COVID-19 on FMCG and service sectors in China.
Methods. The research was conducted by the following methods: monographic; analysis and synthesis, induction and deduction; systems analysis; classification-analytical; graphic.
Results. The overall impact on the Chinese economy and industries as a result of the COVID-19 outbreak is negative with neighborhood/housing lockdowns and strict preventative and surveillance measures by Chinese authorities effectively keeping consumers at home. Some industries in China have already seen dramatic downturns. These are mainly offline segments requiring physical contact or presence in a store, such as travel, consumer foodservice, alcoholic drinks and luxury. The outbreak has benefited categories that consumers believe can help alleviate the effects of COVID-19, such as air purifiers, detergents and antibacterial creams. Industries to be positively impacted by this are consumer health, home care and tissue and hygiene. Industries with a strong online presence prove resilient.
Conclusions. Considering all changes during corona period and investigation above, profound changes are expected in China’s organisations: better prepared for future risks, strong boost to e-commerce, short-term negative hit on specific industries, strong recovery anticipated.
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