---
title: "Private Labels Become a Battleground, with Manufacturers and Products as the Real Weapons"
description: "As consumerism shifts toward extreme value for money, the retail industry is undergoing a new round of reshuffling. Hema has launched a bold 'discount transformation,' Yonghui Superstores has added 'authentic discount stores,' and Dingdong Maicai has opened 'Dingdong Outlets'... Retailers are extending their reach into discount models, trying to seize the low-price high ground. As a representative means of hard discount, private labels are a must-fight battleground. Retail giants Costco and Sam's Club have private label SKU ratios exceeding 30%, while Aldi, which is increasing its presence in China, has a private label SKU ratio of..."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2024-05-29"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/VMd_YU2LARBnrUPn1o64Lg"
translation: "https://xinjignxiao.com/zh/articles/%E8%87%AA%E6%9C%89%E5%93%81%E7%89%8C%E6%88%90%E5%BF%85%E4%BA%89%E4%B9%8B%E5%9C%B0-%E7%94%9F%E4%BA%A7%E5%95%86%E4%B8%8E%E4%BA%A7%E5%93%81%E6%89%8D%E6%98%AF%E7%9C%9F%E6%AD%A3%E6%AD%A6%E5%99%A8-2041dd58.md"
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---

# Private Labels Become a Battleground, with Manufacturers and Products as the Real Weapons

> As consumerism shifts toward extreme value for money, the retail industry is undergoing a new round of reshuffling. Hema has launched a bold 'discount transformation,' Yonghui Superstores has added 'authentic discount stores,' and Dingdong Maicai has opened 'Dingdong Outlets'... Retailers are extending their reach into discount models, trying to seize the low-price high ground. As a representative means of hard discount, private labels are a must-fight battleground. Retail giants Costco and Sam's Club have private label SKU ratios exceeding 30%, while Aldi, which is increasing its presence in China, has a private label SKU ratio of...

As consumerism shifts toward extreme value for money, the retail industry is undergoing a new round of reshuffling. Hema has launched a bold 'discount transformation,' Yonghui Superstores has added 'authentic discount stores,' and Dingdong Maicai has opened 'Dingdong Outlets'... Retailers are extending their reach into discount models, trying to seize the low-price high ground. As a representative means of hard discount, **private labels are a must-fight battleground.** Retail giants Costco and Sam's Club have private label SKU ratios exceeding 30%, while Aldi, which is increasing its presence in China, has a private label SKU ratio reaching 90%. Although domestic retailers have also long been intensifying their efforts to develop private labels, such as **Hema, Yonghui, Tianhong, and JD.com**, the sales share of private label products in domestic supermarkets is only 5% (source: CCFA '2023 China Supermarket Private Label Case Report'), far lower than Europe's 34% (source: PLMA) and the US's 29% (source: IRI Unify). This indicates that domestic private labels are worth deep exploration but urgently need breakthroughs. At this stage, retailers must work on both the quantity and quality of private label products, with quality control and differentiation as the core. Both actions are closely related to upstream manufacturers. Finding good partners and good products is the most critical step on the front line. However, how to find good partners and products is a problem troubling the retail industry, especially given the fact that China has countless source factories. The Shenzhen International Private Label Fair is an international exhibition deeply rooted in the private label field, selecting high-quality private label source factories from around the world, covering active private label areas such as food, beverages, and daily necessities, as well as new trends like pets, health, and smart home, bringing together good partners and good products. **The exhibition will be held on June 26-28 at the Shenzhen Convention and Exhibition Center (Futian).**
**Choosing Private Labels**


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