Goldman Sachs Gao publishes third-quarter China retail industry research Report

Summary: View the latest quotes Beijing time November 3 afternoon news, Goldman Sachs Gao today released the third quarter of China's retail industry research report, the only product will and Poly-Mei excellent products expressed optimistic. The following is the full report: 96 A-share consumer stocks in the third quarter of the industry to see the latest market

Beijing time November 3 afternoon news, Goldman Sachs Gao today released the third quarter of China's retail industry research report, the only product will and Poly-Mei excellent products expressed optimistic.

The following is the full report:

Third-quarter earnings of 96-a-share consumer stocks: revenue grew 5% per cent year-on-year, up from 3% in the first quarter and the second quarter, driven by home appliances

We analyzed the third quarter revenue data of 96 a-share listed companies in many consumer fields. The average revenue growth rate was 5%, higher than the first quarter and the second quarter of 3%, while the chain continued to grow. 7 of the 10 sub-industries grew better in the third quarter than in the second quarter. However, the growth rate in the third quarter of 2013 was 9%, so the overall trend is still weak and showing signs of differentiation.

Consumer durables the biggest growth in the third quarter

Only 3 of the consumer sector's revenue growth rate exceeded 10%, respectively, for supermarkets, home appliances and dairy products. Thanks to the promotion of gree and Suning, the home appliance industry's revenue growth rate rose from 7% in the first half of this year to 11% in the third quarter. Other consumer sectors, including clothing, footwear and department stores, have been weak, but have been slightly boosted by negative growth in the first half of the year.

The food and beverage industry, beer/soft drink growth has slowed markedly, demand for dairy products remain strong, the demand for alcoholic beverages industry remains weak

In the third quarter, the beer industry was unusually weak, with revenue growth of 2% per cent, well below 8% in the second quarter. This is probably because the World Cup stimulated market demand. Coca-Cola China's sales fell markedly, from 10% in the first half to 1% in the third quarter. The alcoholic beverage industry has yet to show signs of stabilisation, with total revenue falling 10% per cent year-on-year, similar to the second quarter.

Multinationals continue to face challenges in the Chinese market in the third quarter

The trend of multinationals in the Chinese market in the third quarter remains basically the same. Coach and Starbucks, two of the fastest-growing companies in China, have recorded revenue growth of 10% and 21% in the third quarter, below 20% and 23% in the second quarter. In the food and beverage industry, Coca-Cola's third-quarter Chinese sales fell year-on-year (as did sales of Pepsi-Cola's Chinese market). Nestlé, Unilever and Colgate all face a slowdown in the Chinese market, with one major exception being Kimberly Clark. The company reported a 25% increase in sales of diapers, as a result of strong sales of electricity dealers.

Lack of clear direction towards the end of the year, focusing on the company's ability to maintain market share

As market demand slows down, we will focus on companies that can, or at least, successfully defend their market share. The companies that meet this standard include: the only product will, Poly-US excellent products, Chow Tai Fook, six-fu jewelry, gome, Sunart Retail, Yong-Hui supermarket and unified enterprise China. (D-Gold)