Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Attitudes toward Private Label - China - March 2016

“Private label has a minor presence in China. Overall, the share of private label innovation stayed flat at 3-4% between 2011 and 2014, while in some European countries this figure is a lot more significant. For example, Spain (40.5%), the UK (31.4%), France (30.9%) and Germany (27.2%) all saw private label have a strong share of NPD activities during 2015."

– Esther Lau, Research Analyst

This report looks at the following areas:

  • The balance between premium and good value for money
  • International supermarkets should expand imported private label range made with environmental-friendly elements
  • Upgrading convenience food solutions holds the key for growth
  • Scope to harness the health and baby-oriented connotation of private label beauty and personal care products

Branded products still have a clear advantage over private label in consumers’ perception. The top three attributes associated with private label are good value for money, practical and easy to use. In contrast, shoppers relate quality guaranteed, premium and safe with branded products.

Looking ahead, Chinese shoppers express their wish to see both value/economy private label ranges with lower prices, and premium tiers with enhanced functions for greater quality assurance. Private label providers need to make extra effort to focus on quality in addition to affordability in order to clearly differentiate themselves from branded competitors.

This report focuses on consumer usage and purchasing of products produced by retailers for exclusive sale by them, such as supermarkets, department stores, premium supermarkets, grocery multiples, direct selling outlets and specialist beauty retailers.

  • Manufacturer brands: products which are available in grocery stores. Examples include Heinz, L’ Oréal, Nestlé, Procter & Gamble.
  • Private label: products which are controlled and managed by retailers, carrying either the retailer’s name or exclusively created name. Examples included Walmart (Great Value), CR Vanguard (Run Zhi Jia), Lianhua Supermarket (Lianhua Better Living). This group also includes tertiary/venture brands which are exclusively made for a retailer, such as Watsons’ Natural Balance Rose Moisture Smoothing)

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Products covered in this report
        • Methodology
          • Abbreviations
          • Executive Summary

              • The market
                • Private label share tends to grow when the economy is suffering
                  • Who’s innovating?
                    • Branded products remain dominant, but there is a slowly increasing trend for private label innovations
                      • Figure 1: Private label share by category and growth, China, 2015 (Household, Food, Drink, Beauty & Personal Care)
                    • The consumer
                      • Private label Consumers
                        • Figure 2: Target groups of attitudes towards private label products, by demographics, November 2015
                      • 75% of respondents have purchased private label products
                        • Figure 3: Usage of private label products in the last six months, November 2015
                      • Quality and functionality-driven
                        • Figure 4: Attitudes towards private label products, November 2015
                      • Expand imported private label products to China
                        • Figure 5: Preference of buying private label products from different retailers in the last six months, November 2015
                      • Scope to invest in premium offerings
                        • Figure 6: Attributes associated with private label and branded products, November 2015
                      • 40% of new private label food and drink products carry the claim of economy
                        • Figure 7: Usage of private label food and drink products in the last six months, November 2015
                      • Similar to branded products, a high percentage of private labels have moisturising function and are inspired by botanical/herbal scent
                        • Figure 8: Usage of private label beauty, personal care and household care products in the last six months, November 2015
                      • Develop joint promotion opportunities for branded and private label products
                        • Figure 9: Factors that would encourage consumers to buy private label products, November 2015
                      • What we think
                      • Issues and Insights

                        • The balance between premium and good value for money
                          • The facts
                            • The implications
                              • International supermarkets should expand imported private label range made with environmental-friendly elements
                                • The facts
                                  • The implications
                                    • Upgrading convenience food solutions holds the key for growth
                                      • The facts
                                        • The implications
                                          • Scope to harness the health and baby-oriented connotation of private label beauty and personal care products
                                            • The facts
                                              • The implications
                                              • The Market

                                                • What you need to know
                                                  • The future for private label products in China
                                                    • Private label innovation is set to rise
                                                      • The top companies for private label innovation vary significantly between 2014 and 2015
                                                      • Market Factors

                                                        • Private label share tends to grow when the economy is suffering
                                                          • Scope to increase private label innovation
                                                            • Higher growth in European markets
                                                            • Who’s Innovating?

                                                              • Branded products remain dominant, but there is a slowly increasing trend for private label innovation
                                                                • Figure 10: Private label share vs Branded share, China 2010-15
                                                              • Only 5.6% and 3.8% of new private label products belong to food and drink categories
                                                                • Figure 11: Private label share, by category, China, 2015
                                                              • Food categories 2015
                                                                • Figure 12: Share of private label in new product launches of food products in China, by product category, 2015
                                                                • Figure 13: Dried Jackfruit, Walmart, China, December 2015; Dried Peaches, Family Mart, China, May 2015
                                                                • Figure 14: Share of private label in new product launches of food products in China, by product sub-category, 2015
                                                                • Figure 15: Percentage-point change in the share of private label in new food product launches, by product sub-category, 2014-15
                                                              • Drink categories 2015
                                                                • Figure 16: Share of private label in new product launches of drink products in China, by product category, 2015
                                                                • Figure 17: Share of private label in new product launches of drink products in China, by product category, 2015
                                                                • Figure 18: Percentage-point change in the share of private label in new drink product launches, by product sub-category, 2014-15
                                                                • Figure 19: Peach Juice Jelly Drink, CR Vanguard, China, May 2015; 100% apple juice, METRO Cash & Carry, China, December 2015
                                                                • Figure 20: Raspberry Flavoured Triple Distilled Vodka, Walmart, China , July 2015; Rose Cider, Auchan, France, December 2015
                                                              • Beauty and personal care categories 2015
                                                                • Figure 21: Share of private label in new product launches of beauty and personal care products in China, by product category, 2015
                                                                • Figure 22: Share of private label in new product launches of beauty and personal care products in China, by sub- category, 2015
                                                                • Figure 23: Percentage-point change in the share of private label in new beauty and personal care product launches, by product sub-category, 2014-15
                                                                • Figure 24: Nourishing Herbal Shampoo, Mannings, China, December 2015; Honey Skin Nourishing Body Wash, Lianhua Supermarket, June 2015
                                                                • Figure 25: Illuminating Colour Correction Base, Watsons Personal Care Stores, China, September 2015; Shimmer lip gross, Watsons Personal Care Stores, China, July 2015
                                                              • Household Care categories 2015
                                                                • Figure 26: Share of private label in new product launches of household care products in China, by sub- category, 2015
                                                                • Figure 27: Facial Tissue, Aeon, China, June 2015; Mini Pocket Tissue, Aeon, China, February 2015
                                                                • Figure 28: Percentage point change in the share of private label in new household care product launches, by product sub-category, 2014-15
                                                                • Figure 29: Percentage-point change in the share of private label in new household care product launches, by product sub-category, 2014-15
                                                                • Figure 30: Quality Laundry Soap, Auchan, China, May 2015; Michelia Alba Scented Handwash Laundry Detergent, Tesco, China, March 2015
                                                              • The percentage for private label innovation is a lot higher in European and American regions
                                                                • Figure 31: Private label share vs Branded share, International markets, 2015
                                                                • Figure 32: New product launches in the UK, branded vs private label, 2015
                                                                • Figure 33: New product launches in France, branded vs private label, 2015
                                                                • Figure 34: New product launches in Belgium, branded vs private label, 2015
                                                                • Figure 35: Chicken and Sarlat Potatoes, Leader Price – DLP, France, December 2015; Gratin with Broccoli, Pork and Creamy Cheese Sauce, Carrefour, Belgium, November 2015
                                                              • Green packaging and ethical positioning is rising on the global stage
                                                                • Figure 36: Share of new product launches in the Chinese market, by claims, private label, 2015
                                                                • Figure 37: Share of new product launches in the UK, France and Spain, by claims, private label, 2015
                                                                • Figure 38: Share of new product launches in the Chinese market carrying environmental-friendly package and product claims, private label vs branded, 2011-15
                                                                • Figure 39: Pouring Brandy Cream with Channel Island Cream & Courvoisier VS Cognac, Tesco UK, December 2015; Limited Edition Pocket Tissues, Auchan France, December 2015
                                                            • Key Players

                                                              • The change in private label innovation
                                                                • Figure 40: Share of private label launches in food, drink, beauty, personal care and household care markets in China, by company, 2015
                                                              • Walmart
                                                                • Figure 41: Share of private label launches in China, Walmart, 2015
                                                              • Watsons
                                                                • Figure 42: Share of private label launches in China, Watsons Personal Care Stores, 2015
                                                              • CR Vanguard, Tesco
                                                                • Figure 43: Share of private label launches in China, Tesco, 2015
                                                              • A strong comeback for Aeon in the near future
                                                              • The Consumer

                                                                • What you need to know
                                                                  • Five different types of private label consumers
                                                                    • Opportunities for international supermarket chains
                                                                      • Premium range with functionality-driven innovations
                                                                      • Private Label Consumers

                                                                          • Figure 44: Target groups of attitudes towards private label products, by demographics, Nov 2015
                                                                        • Young and Environment-driven
                                                                          • Demographics
                                                                            • Characteristics
                                                                              • Price-Conscious and Deal Hunters
                                                                                • Demographics
                                                                                  • Characteristics
                                                                                    • Brand-Conscious
                                                                                      • Demographics
                                                                                        • Characteristics
                                                                                          • Private Label Neutral
                                                                                            • Demographics
                                                                                              • Characteristics
                                                                                                • Old and Curious to Private Label
                                                                                                  • Demographics
                                                                                                    • Characteristics
                                                                                                    • Usage of Private Label Products

                                                                                                      • 75% of respondents have purchased private label products
                                                                                                        • Figure 44: Usage of private label products in the last six months, November 2015
                                                                                                      • Consumers in their 40s have lower private label awareness
                                                                                                        • Figure 45: Usage of private label products in the last six months, by age, November 2015
                                                                                                    • Attitudes towards Private Label

                                                                                                      • Brand and quality-driven
                                                                                                        • Figure 46: Attitudes towards private label products, November 2015
                                                                                                      • Functionality-driven – product differentiation
                                                                                                        • Figure 47: Attitudes towards private label products, by gender and age, November 2015
                                                                                                        • Figure 48: Curry Sauce, Carrefour, Belgium, December 2015; Banana Flavoured British 1% Fat Milk, Sainsbury’s, UK, February 2016
                                                                                                    • Preference of Different Retailers

                                                                                                      • Expand imported private label products to China
                                                                                                        • Figure 49: Preference of buying private label products from different retailers in the last six months, November 2015
                                                                                                        • Figure 50: Preference of buying private label products from different retailers in the last six months, by demographics, November 2015
                                                                                                      • Health and beauty chain retailers are on the rise
                                                                                                        • Figure 51: Shampoo, Watsons Personal Care Store, China, December 2015; Lovely Sweet, Body Lotion, Mannings, China, November 2015
                                                                                                        • Figure 52: Moisture Body Cream, Auchan China, December 2015; Crème Handwash, Tesco China, February 2015
                                                                                                      • Future of convenience stores in private label
                                                                                                        • Figure 53: Preference of buying private label products from different retailers in the last six months, by gender and age, November 2015
                                                                                                        • Figure 54: Crispy Black Chocolate Bar, Family Mart, China, June 2015; Seaweed Cheese Rolls, Family Mart, China, May 2015
                                                                                                        • Figure 55: Chia Seed & Fig Cookie, Lawson, Japan, February 2016
                                                                                                    • Private Label Products vs Branded Products

                                                                                                      • Scope to invest in premium offerings
                                                                                                        • Figure 56: Attributes associated with private label and branded products, November 2015
                                                                                                        • Figure 57: Share of new launches in the Chinese food, drink, beauty, personal care and household care market carrying premium and economy claims, private label vs brands, 2011-2015
                                                                                                      • Focus on convenient packaging to tap into fast-paced lifestyles
                                                                                                        • Figure 58: Attributes associated with private label and branded products, by age, November 2015
                                                                                                        • Figure 59: Share of new launches in the Chinese food, drink, beauty, personal care and household care market carrying ease of use and convenient packaging, private label vs brands, 2011-15
                                                                                                        • Figure 60: Thai Style Rice with Prawns & Vegetables, Lidl, France, July 2015; Porridge with Berry Compote, Mark & Spencer, UK, Jan 2015
                                                                                                    • Usage of Private Label Food and Drink Products

                                                                                                      • 40% of new private label food and drink products carry economy claim
                                                                                                        • Figure 61: Share of new product launches in the Chinese food and drink market, by claims, private label vs branded, 2015
                                                                                                      • Different clusters and preferences for different private label food and drinks
                                                                                                        • Figure 62: Usage of private label food and drink products in the last six months, by target groups of attitudes towards private label products, Nov 2015
                                                                                                      • Innovation in bread and baked goods
                                                                                                        • Figure 63: Usage of private label food and drink products in the last six months, November 2015
                                                                                                        • Figure 64: Grape Flavoured Sachima, Walmart, China, April 2015
                                                                                                        • Figure 65: Whipped Custard Cream Mini Croissant, Lawson Japan, January 2016; Olive Oil Cheese Bun, Lawson, Japan, February 2016
                                                                                                      • Opportunities for child-oriented private label food
                                                                                                        • Figure 66: Share of new product launches in the Chinese food and drink market carrying babies, toddles and children claims, private label vs branded, 2015
                                                                                                        • Figure 67: Red Bean Flavoured Nutritious Cereal, RT-Mart, China, December 2015; Pineapple Flavoured Juice Jelly, Auchan, China, October 2015
                                                                                                      • Frozen food and prepared meals can be the next winner
                                                                                                        • Figure 68: Chargrilled Vegetable & Pesto Woodfired Pizza, Marks & Spencer, UK, August 2014; Superfood Steak Meatball & Wholewheat Pasta Bake with Kale, Marks & Spencer, UK, February 2016
                                                                                                      • Repertoire Analysis
                                                                                                        • Figure 69: Repertoire of usage of private label food and drink products in the last six months, November 2015
                                                                                                    • Usage of Private Label Beauty and Personal Care and Household Care Products

                                                                                                      • Botanical inspirations and moisturising functions
                                                                                                        • Figure 70: Share of new product launches in the Chinese beauty and personal care market, by claims, private label vs branded, 2015
                                                                                                      • Different clusters and preference for private label beauty and personal care products
                                                                                                        • Figure 71: Usage of private label beauty, personal and household care products in the last six months, by target groups of attitudes towards private label products, Nov 2015
                                                                                                      • Upgrading colour cosmetic and skincare products for the older generation
                                                                                                        • Figure 72: Usage of private label beauty, personal care and household care products in the last six months, November 2015
                                                                                                        • Figure 73: Pro-Contour Neck & Jaw Cream, Marks and Spencer, UK, Feb 2016
                                                                                                        • Figure 74: Anti-Ageing Body Lotion, Aldi Nord, Germany, January 2016
                                                                                                      • Private label baby personal care products set to rise
                                                                                                        • One similarity shared by private label food and drinks and beauty products is targeting children as a high growth segment. According to Mintel’s Baby Personal Care – China, August 2015 Report, parents are very conscious of the quality of baby-related items’ so their purchase behaviour becomes more sophisticated. As a result, the baby personal care market will continue to enjoy sustainable growth in the next five years. This makes it particularly important for international retailers to leverage their reputation and exploit opportunities to offer safer child-oriented imported products in China. Chinese consumers place much higher trust on 100% imported goods when it comes to baby-related items.
                                                                                                          • In 2015, only 0.9% and 1.2% of new launches were associated with the babies or children labels, respectively. Tesco and Mannings are launched baby body care products, with Chinese parents concerned about the quality of baby-related items quality.
                                                                                                            • Figure 75: Share of new product launches in the Chinese beauty and personal care market carrying babies, toddles and children claims, private label vs branded, 2015
                                                                                                            • Figure 76: Baby Shampoo with Honey, Tesco, China, April 2015; Children Orange Shampoo, Tesco, China, April 2015
                                                                                                            • Figure 77: Baby Shampoo, Mannings China, February 2016; Baby Whip Hand Cream, Mannings, China, February 2016
                                                                                                          • Environmentally-friendly and anti-bacterial functions to enhance image of household cleaning products
                                                                                                            • Figure 78: Share of new product launches in the Chinese household care market, by claims, private label vs branded, 2015
                                                                                                            • Figure 79: Environmentally-Friendly Bathroom Cleaner, Auchan, China, November 2014
                                                                                                            • Figure 80: Ecological Dishwashing Liquid with Lemon Essential Oil, Biocoop, France, February 2016; Biodegradable Garbage Bags, Carrefour – CM,I France, Jan 2016
                                                                                                          • Repertoire Analysis
                                                                                                            • Figure 81: Repertoire of usage of private label beauty, personal care and household care products in the last six months, November 2015
                                                                                                        • Motivation for Buying Private Label Products

                                                                                                          • Put greater effort into marketing activities to build private label equity
                                                                                                            • Figure 82: Factors that would encourage consumers to buy private label products, November 2015
                                                                                                            • Figure 83: Factors that would encourage consumers to buy private label products, by target groups of attitudes towards private label products, November 2015
                                                                                                          • Develop joint promotional opportunities for branded and private label products
                                                                                                            • Figure 84: Factors that would encourage consumers to buy private label products, by target groups of attitudes towards private label products, Nov 2015
                                                                                                            • Figure 85: Lianhua Better Living Olive Oil China, March 2015
                                                                                                            • Figure 86: Lavender Petal Facial Mask, Watsons Personal Care Stores, China, January 2016
                                                                                                            • Figure 87: Eye Gel, Watsons Personal Care Stores, China, January 2016
                                                                                                        • CHAID analysis

                                                                                                          • Methodology
                                                                                                            • How to market cheaper options to appeal to Mintropolitans?
                                                                                                              • Figure 88: Attitudes towards private label products – CHAID – Tree output, Nov 2015
                                                                                                              • Figure 89: Attitudes towards private label products – CHAID – Table output, Nov 2015
                                                                                                          • Meet the Mintropolitans

                                                                                                            • Why Mintropolitans?
                                                                                                              • Who are they?
                                                                                                                • Figure 90: Demographic profile of Mintropolitans vs Non-Mintropolitans, by gender, age and personal income
                                                                                                                • Figure 91: Demographic profile of Mintropolitans vs Non-Mintropolitans, by marital status, city tier and education level
                                                                                                              • Blurring the image of private label and branded products
                                                                                                                • Figure 92: Attitudes towards private label, by Mintropolitans vs Non-Mintropolitans, November 2015

                                                                                                            Attitudes toward Private Label - China - March 2016

                                                                                                            US $3,990.00 (Excl.Tax)