Core Insights - The report by NielsenIQ highlights the increasing focus of retailers on private label development as a strategic response to competitive pressures and changing consumer demands [1][2] Retail Challenges - Retailers face challenges such as channel diversification, price transparency, and evolving consumer needs, prompting 68% of management to prioritize product structure adjustments, with private label development as a key strategy [1] Consumer Intent and Market Potential - 56% of Chinese consumers express a willingness to increase purchases of private labels, surpassing the global average, with over 60% recognizing private labels for their value and cost-effectiveness [2] - Private labels currently show a sales growth rate of 12.9%, with an average price 16% lower than manufacturer brands, indicating a strong market entry strategy based on price [2] Quality Perception and Consumer Behavior - Only 50% of consumers believe private labels match the quality of manufacturer brands, which is below the Asia-Pacific average, and over 70% still prefer familiar big brands [7] - The consumer mindset of valuing both price and quality is reshaping the development path of private labels [2][7] Types of Private Labels and Strategies - Three main types of private labels exist: 1. Low-price volume products focusing on basic functionality, contributing over 80% of sales 2. Quality-focused products that leverage market trends, driving over 90% sales growth 3. Differentiated innovative products that achieve over 70% sales growth through unique features [7][8] Strategic Planning for Private Labels - Successful private label development requires systematic strategic planning, including selecting suitable categories, researching competitor products, and establishing pricing and packaging strategies [9][15] Supply Chain and Marketing - Effective supply chain management is crucial for private label success, particularly for imported or rapidly innovating products, while marketing strategies must encompass a complete cycle from trust-building to sales conversion [15] Complementary Relationship with Manufacturer Brands - The development of private labels should complement rather than replace manufacturer brands, as consumers have different functional expectations from each, creating opportunities for collaborative growth [16] Future Outlook - Private labels are transitioning from a focus on price advantage to a multi-value proposition, requiring retailers to balance quality, price, and innovation to meet rational consumer expectations [22]

Core Insights - The NielsenIQ report indicates that private labels in supermarkets are entering a critical development phase, transitioning from a low-price strategy to a focus on quality and differentiation [1][2]. Industry Trends - 68% of retailers prioritize optimizing product assortments, including private labels, as their main resource investment for 2025, highlighting its strategic importance [1]. - 56% of Chinese consumers are willing to purchase more private labels, surpassing the global average of 53% [1][11]. - Private label sales in modern channels are projected to grow by 12.9% by 2025, significantly outpacing manufacturer brands at 4.8%, while still being priced 16% lower than manufacturer brands, showcasing a clear value advantage [1][19]. - Despite this growth, 77% of consumers still prefer familiar branded products, and 50% believe manufacturer brands are worth a premium, indicating challenges for private labels in overcoming quality trust and brand loyalty barriers [1][12][16]. Category Performance - Categories showing growth for private labels include yogurt, flavored milk, and packaged water, which leverage "big item" strategies and quality upgrades to attract consumers [1]. - Innovative categories like ready-to-drink tea are exploring differentiation through technological advancements [1]. - Categories experiencing declines, such as soap and skincare products, reflect high brand dependency among consumers, indicating insufficient competitiveness for private labels [1]. - Freshly baked goods and ready-to-eat meals are emerging growth areas, with short-shelf-life baked bread sales increasing significantly and ready-to-eat meal counts growing by 3.5 times, demonstrating consumer attraction to "real ingredients" [1]. Strategic Recommendations - Successful development of private labels requires a multi-faceted approach, including careful category selection based on supply chain capabilities and overcoming procurement barriers for imported goods [2]. - Retailers should enhance product development, supply chain management, and brand building to transition from a low-margin, high-volume model to a high-margin, focused sales strategy [2]. - Collaborative marketing between manufacturer brands and private labels can enhance category flow and avoid direct competition, fulfilling different consumer needs for mutual benefit [2].