Public awareness of private label products on the rise
Online retailers are joining with vendors of private-label products to raise consumer awareness.
JD.com has signed an agreement for strategic cooperation with the Private Label Fair Asia as the e-commerce firm plans to expand its private-label business.
Private-label products are brands which carry the names of retailers, typically convenience stores, supermarkets and hypermarkets. By eliminating middlemen, private-label prices are usually more competitive than other brands.
"It is a fresh sector for JD.com and we hope to learn from our predecessors," said Huang Jie from JD.com.
Private-labels on the Chinese mainland started more than two decades ago. But the penetration remained low compared with more than 30 percent in some European markets.
To raise public awareness of private-label products, the Shanghai Licensing Association will continue to host a competition in partnership with Private Label Fair this year to select best practices in the sector.
"Private label is also an effective way to differentiate strength of retailers in a highly competitive market," said Cao Jian, president of the Shanghai Licensing Association.
The competition, which is now in its 5th year, is in motion. It has recruited a jury of retailers, consulting firms, professors and consumers. The competition will offer awards including best private-label products, best marketing practices, best suppliers and best retailing teams.
The competition is part of the 2021 Shanghai Private Label Fair, which will be held at the Shanghai New International Expo Center in November. The winners will be announced then.