Exponential Growth! China's Domestic Brand Consumer Market is Growing Rapidly

In the past In 2021, China's retail private brands rapidly rose, blossoming and competing fiercely. According to data released by Daymon Worldwide and Kantar, the overall growth of China's private brand market reached 22.7%, more than 12 times that of fast-moving consumer goods, achieving rapid growth compared to two years prior. How did this imported concept of private brands achieve such rapid growth in recent years? And what are some of the new development trends?

I · Significant Increase in Private Brand Awareness ·

Daymon's research found that in 2021, the awareness of private brands in China significantly increased compared to the previous two years. The proportion of consumers who have heard of or understand the concept of private brands reached 92%, far exceeding the 74% in 2019. Among them, 50% of consumers can accurately name at least one private brand, and 35% of consumers purchased private brand products in the past six months. Among those who haven't purchased, 87% are willing to try. This shows that over the past few years, through increased investment in R&D and innovation, faster product development, expanded product categories, and optimized marketing strategies by retailers, private brands have become more widely known, accepted, and tried by consumers, gradually integrating into their daily lives.

Developing private brand businesses not only cultivates customer loyalty, but also diversifies product lines and individual products. Compared to branded products, private brand products represent cutting-edge market trends and hold immense potential for sustainable development. Therefore, more and more retailers are announcing private brands as their core future strategy, such as JD.com, Hema, Dingdong Maicai, and Yonghui.

II · Diversified Multi-Brand Layout Takes Shape ·

Daymon's research shows that most retailers have adopted a multi-brand strategy, including entry-level brands targeting budget-conscious consumers and emphasizing price advantages, mid-range brands competing with national brands and highlighting cost-effectiveness, and even high-end brands surpassing national brands. Categories cover food, non-food, and fresh produce. The diversified brand layout reflects that private brand products have entered a wider range of categories, and also shows that some retailers have become aware of the segmentation of consumer groups and the differences in needs among different groups. The product development approach has gradually shifted from being primarily driven by category characteristics to being consumer-centric.

III · Using Private Brands to Showcase Member Value ·

With the explosive expansion of paid membership stores in 2021, competition among private brands has entered a new phase. Unlike traditional supermarkets, paid membership stores charge annual fees between 200 and 300 yuan. To persuade consumers to pay for membership, the store's goods must offer higher cost-effectiveness, stronger differentiation, and greater value for members. Therefore, while expanding the number of stores, membership stores are focusing on increasing their private brand penetration rate. The rise of membership stores shows that private brands are gradually moving away from simply replacing and imitating national brands, becoming representatives of retailers conveying value and gaining a competitive advantage through differentiation in the retail market.

  IV · Building Omnichannel Operations ·  

The pandemic changed the consumption habits and information access methods of some consumers. Their understanding of private brands is no longer solely reliant on offline channels but is more dispersed across word-of-mouth marketing, online promotion, and live streaming.

In response to the increasingly fragmented information access channels for consumers, The 2022 Shenzhen International Private Brand and New Consumer Goods Expo (Marca China) will bring together major live e-commerce, community e-commerce, traditional e-commerce platforms, anchors, private domains, and MCN agencies to help exhibitors optimize channel layout and development, enhance product omnichannel reach, expand diverse consumption scenarios through various forms of cooperation, and achieve strong alliances with more channel merchants.

V · Focus on Quality, Not Low Prices ·

In Daymon's 2021 consumer survey, the biggest concern for consumers who did not purchase private brands was "worry about product quality." This indicates that the key to improving private brand conversion is not to further lower product prices, but to improve product quality. Improving product quality control, using high-quality raw materials, and using high-quality packaging design can alleviate these consumer concerns.

The 2022 Shenzhen International Private Brand and New Consumer Goods Expo (Marca China) brings together 400+ excellent manufacturers and contract manufacturers for new product procurement and high-quality product selection.

VI · Category Innovation Centered Around Lifestyle ·

Facing new consumer groups, private brands are beginning to innovate across categories around "lifestyle," creating private brand products that better suit the lifestyles of new consumer groups. Paying attention to changes in consumer habits, combining product development and iteration with emerging consumption scenarios, helping consumers achieve their life aspirations, will continue to be the mainstream trend of private brand innovation. At the same time, extending from prioritizing functional products to more emotionally driven products is also a necessary path for companies to make new attempts and for private brands to steadily develop.

In Another Daymon survey shows that in China, private brand consumers have higher spending power than non-private brand buyers. Their purpose of consumption is not to save money, but to pursue a high-quality life and are willing to spend money on valuable products. In the new year, private brands will see more high-quality, innovative products that meet segmented needs, providing more value to consumers while bringing greater returns to retailers.

Data Source:

PLSC/Daymon Worldwide/Digital 100, Private Brand Consumer Survey, October 2021, N=2411;

《 2020 China Private Brand Daymon White Paper》

Marca China

Shenzhen International Private Brand Expo & New Consumer Goods Expo

China Brand 2022 is expected to attract 400 exhibitors from more than ten countries and regions, 10,000 professional visitors, and cover an exhibition area of 20,000 square meters. Exhibits will cover active areas of private label brands such as food, home, and leisure, and will strengthen and upgrade professional areas such as beauty and personal care, organic health, pet supplies, and packaging design. At the exhibition, exhibitors can contact professional buyers from various fields, including supermarkets and convenience stores, brand owners and brand operators, specialty stores, new retailers, e-commerce platforms, social e-commerce, hotels and restaurants, wholesalers, distributors, agents, and import and export traders, to deeply connect with market demand.