9/1/04 (Oilmandi) - India’s fast moving consumer goods (FMCG)manufacturers would love to replicate China’s success story. The growth inthe urban Chinese FMCG market, at 9%, comfortably beats the Indian urbanFMCG market, which grew at 2.2% for the year ended April ’04.

The growth of the top 10 categories in China indicated a largely positivetrend, with large categories like juices and skin moisturisers recordingdouble digit growth.

The top 10 FMCG categories in India have recorded a mixed trend, with thelargest category, toilet soaps, recording a negative 1.1% growth andrefined edible oils growing at 20%.

The Chinese market had a more balanced development with two-pronged growthfrom non-food categories, which grew by 6%, and food categories, whichgrew by 12%.

On the other hand, large non-food categories in India declined in value,while the urban packaged food market with refined edible oil grew at 20%and biscuits grew at 8.9%.

A comparative study of India and China by AC Nielsen shows that the foodcategory in the local FMCG market grew by 6.8%, while the non-foodcategory recorded a decline of 1.2%.

One of the main reasons cited for China’s progress is better developmentof modern trade channels within the urban geography, a key factor drivingconsumption.