Rising trend for 'private labels' on food products

In line with overseas markets, Chinese retailers – especially larger supermarkets – see value in putting their own brand name on what they sell. The potential for growth is huge.

The 2017 Shanghai Private Label Fair will feature more food and overseas exhibitors, reflecting changing demand from domestic consumers, the fair organizer said on Thursday.

The fair, from November 28-30 at the New International Expo Center, will host nearly 500 exhibitors and cover 20,000 square meters, said Yao Zheng, secretary-general of the Private Label Special Committee of the Shanghai Licensing Association.

The number of food producers is up 30 percent over last year’s fair, in line with global trends.

Private label products carry the retailer’s brand name, especially supermarkets and hypermarkets. Without middlemen, this increases price competitiveness.

The international exhibition zone will include exhibitors from 16 countries, including South Korea for the first time which will showcase cosmetics, electronics, clothing, and infant care products.

Kong Fu’an, an official with the Shanghai Commission of Commerce, said the emergence of private labels in China shows that retailers see value in more control over what they sell.

The private label market still has great potential in China as such branding makes up only 5 percent of total retail sales, compared with 24 percent in the West.

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