The Ghost Festival, one of the most important traditional holidays in Taiwan, is a critical peak season for FMCG manufacturers. Through monitoring the market dynamics, we can have a better understanding of consumer purchase behaviors and preferences, which could be utilized for strategy planning for upcoming Chinese New Year campaigns.
Nielsen Retail data showed that total FMCG market grew by 3.2% this Ghost Festival compared to last year; food and beverage categories grew by 3.3%, and non-food grew by 2.7%. This was the first time that food and beverage reported with a faster growth than non-food categories in recent few years.
When viewing overall performances among different channels, chain supermarkets outperformed all other channels with nearly double-digit growth. This is resulted from several marketing activities of the leading retailers, including extending shopping hours to 24 hours on selected dates before the festival as hypermarkets usually did; lucky draws upon reaching certain targeted purchase amount with more valuable gifts; as well as holding concerts and launching themed products for the ghost festival, etc. All measures mentioned allowed more communications with consumers via more aspects.
On the other hand, hypermarkets, the only channel that declined in actual sales values, suffered a first-time decrease during the Ghost festival period, showing that hypermarkets faced a big challenge due to the various marketing strategies of chain supermarkets this year. On the other hand, for convenience stores that entered the Ghost Festival battlefield starting since a few years ago, their performance was quite good, too. Via listing products in multi packs to draw more consumers, these stores increased both the convenience for customers and the growth this year.
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