The private label market in China shows great potential for development. Though uptake has been slow in recent years compared to North America and Europe, Chinese consumers have warmed to the concept thanks to increased R&D by retailers, leading to more innovative products at highly competitive prices.
In 2019, private label brands accounted for 16.3% of FMCG sales globally and 1% in China. In 2020, China’s private label market grew by 22.7%, exceeding that of the FMCG market by more than 12 times (the growth rate of the FMCG market in the same period was only 1.8%). With government intentions to boost domestic spending and promote reinforcement of domestic brands, private labels are expected to enjoy increased visiblity.
In this R3 Category Report we review:
The appeal to mid and high earners
Building differentiation in new categories
Re-constructing the consumer journey
Case studies of Freshippo, Yonghui Superstores, and Sam’s Club