Major risks in the next 12 months per local enterprises are changes in consumer behavior (84.52 percent), changes in distribution channels (71.43 percent) and profit reduction (66.67 percent), according to a survey conducted by NielsenIQ, sina.com reported.

A total of 79 valid questionnaires focusing on Chinese enterprises in fast-moving consumer goods were received from local FMCG Chinese enterprises, among which 17.86 percent were small companies with an average annual turnover below 100 million yuan ($13.94 million), 38.1 percent were medium-sized enterprises (average annual turnover from 100 million yuan to 1.5 billion yuan), and 44.05 percent were large companies (average annual turnover above 1.5 billion yuan). The surveyed enterprises were distributed in food (60.7 percent), personal care (22.62 percent), home care (15.48 percent), non-alcoholic beverages (14.29 percent), medicine (8.33 percent) and baby food and care (8.33 percent).

Among them, large enterprises are most concerned about changes in consumer behavior, while small and medium-sized enterprises are more worried about changes in distribution channels.

When asked about the current challenges facing companies, the top three challenges surveyed by local enterprises were how to develop an omnichannel strategy (51.19 percent), build consumer loyalty (46.43 percent) and attract new customers (44.05 percent). Among them, large and medium-sized enterprises are more concerned about new product development, while small ones are more price sensitive and therefore more concerned about finding the right pricing strategy. Compared with European and American respondents who are generally concerned about the challenges brought by inflation and raw material prices, Chinese enterprises are more concerned about the growth of their own enterprises and have confidence in the Chinese consumer market.

In the face of external challenges, the surveyed enterprises choose to adopt more active strategies to deal with challenges, such as increasing investment in market research (47.62 percent), optimizing product lines (47.62 percent) and restructuring distribution channels (44.05 percent). In the face of huge inflationary pressure, European and American companies are more cautious in their approach to the challenge, preferring to replace cheaper raw materials and increase marketing investment and other short-term market strategies.

In terms of channel layout, e-commerce channels (82.14 percent), hypermarkets (72.62 percent) and chain supermarkets (72.62 percent) are the three most widely distributed channels for local enterprises. Among them, small enterprises give priority to the layout of online channels. E-commerce channels, their own online channels are the two most widely distributed channels. Medium-sized companies pay attention to the layout of near-field small channels, and the utilization rate of convenience stores is higher (second only to traditional supermarkets, hypermarkets, and online e-commerce). Globally, more than 70 percent of European companies surveyed expressed concern that the future will continue to focus on traditional channels.

In the next 12 months, omnichannel strategy, traditional offline channels, and interest-oriented e-commerce platforms are the channels that local companies surveyed are most concerned about. Among them, large and medium-sized enterprises pay most attention to omnichannel strategy and traditional offline channels; small businesses are more concerned about e-commerce.