Private labels gain popularity

Just 2 percent of people in China have never purchased private label products, while 17 percent often buy such goods, according to a survey released by Shanghai Licensing Association's private label specialty committee on Friday.

Private label products are brands that carry the name of retailers, especially supermarkets and hypermarkets. Because middlemen are eliminated, private label prices are very competitive — an effective way to offer consumer products with higher quality but lower prices.

“From the survey, we can see private label products have been gaining popularity among Chinese people,” said Chee Ngai Ng, managing director of Samplenomics, which conducted the survey.

In Europe, private label products account for about 35 percent of all goods sold. But in China, they are less than 5 percent of sales. In big cities like Shanghai, the proportion is higher and people have a growing awareness of private label products, according to the committee.

Selecting good models in designing, manufacturing and marketing such products, the association is giving a Challenge Award this year, together with its partners in Europe, to encourage more retailers to use private labels. The results will be announced at the the annual Shanghai Private Label Fair in December when more details from the survey will be released.