About Private Label
Private Label, also referred to as Private Brand, involves manufacturers and suppliers engaging in contract manufacturing to produce proprietary products for retailers, brand owners, e-commerce platforms, wholesalers, and other distribution channels. Private label products are typically sold exclusively in the retailers' stores or on their e-commerce platforms.
From chain supermarkets, convenience stores, e-commerce platforms, to specialty stores etc., retailers are vigorously developing private brands, such as:
Chain supermarkets & convenience stores: "Daily Fresh" of Freshippo, "TOPVALU" of AEON, "Great Value" of Walmart, "Member's Mark" of Sam's Club, "Kirkland Signature" of Costco, and "FamilyMart Collection" of FamilyMart, among others.
E-commerce platforms: "JDmade" of JD.com; "Lifease" of NetEase, and others.
Specialty stores: Muji, Miniso, etc.
Hotels and restaurants: "Colonel Sanders" of Yum! China, "αTOUR PLANET" of Atour Hotel, among others.
Why Join the Private Label Industry?
- Why do retailers (buyers) join the private labels?
The private label value chain runs from the bottom up — from manufacturers and brand owners, to supply chain service providers, retailers, and ultimately consumers. Along this chain: retailers decide what to sell; manufacturers determine how to make it; and the supply chain defines how efficiently, sustainably, and precisely the two ends are connected.
- Collaborative growth and profit enhancement
- Brand ownership and differentiation
- Operational efficiency and supply agility
- Customer loyalty and long-term competitiveness
- Why Supply Chain Service Providers Are Entering the Private Label Market
- Role and Model Transformation: Integrating Resources to Enable Agile Retail–Supplier Collaboration
- Market and Channel Insight: Trend-driven Selection and Order-oriented Production
- Manufacturing Resource Advantage: Building Stable and Compliant Supply Systems
- Operational Excellence: Enhancing Cost Efficiency and Execution
- Why should OEM/ODM enterprises join private labels?
OEM Enterprises: Activating Capacity and Ensuring Steady Growth in the New Consumer Landscape
- Diversified business portfolio and risk dispersion
- Improved capacity utilisation and operational efficiency
- Closer connection to markets and consumer insights
ODM Enterprises: Innovation-led Growth and New Value Creation
- Securing stable, large-scale orders and building commercial resilience
- Gaining direct access to consumer data and market insights
- Driving internal innovation and achieving higher profitability
- Building brand equity through innovation and capability transfer
The Private Label Market in China
China's private label market share and development potential. China’s Private Label Market: Current Landscape, Opportunities and Consumer Trends
Industry Overview: Private Labels Enter a Phase of Accelerated Growth
In recent years, China’s private label market has maintained steady growth, with an overall penetration rate of 3–5% across the retail sector. Among the country’s top 100 supermarket chains, the share of private label sales has risen from 3.2% in 2019 to 5% in 2022, representing a market size of around RMB 40 billion, with an average sales value of RMB 500,000 per SKU. According to the 2023–2024 China Private Label Development Report, 73% of retailers reported year-on-year growth in private label sales, supplier sales increased by 8.55%, and consumer penetration reached 45%, meaning nearly half of Chinese households have purchased private label products at least once.
These figures illustrate that private labels in China are evolving from an “experimental stage” to a “mainstream phase”, becoming an increasingly important driver of retail profitability. The market is shifting away from a focus on low-cost alternatives towards a new era defined by quality, brand value and consumer experience.
