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Consumers showing tilt toward private labels

Small retailers using high-quality products to overcome pricing challenges and compete with large, established brands

By WANG ZHUOQIONG | CHINA DAILY | Updated: 2026-01-21 07:48
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Shoppers walk past a supermarket stocked with Chinese New Year goods in Lianyungang, Jiangsu province, on Jan 9. GENG YUHE/FOR CHINA DAILY

The Spring Festival product landscape in China is undergoing a major shift, with consumers placing increasing emphasis on health, innovation, and personalization in their holiday shopping.

Traditionally dominated by red-themed goods symbolizing prosperity and good fortune, this year's offerings have diversified toward more youthful and vibrant designs, reflecting the evolving tastes of younger, trend-savvy consumers.

At a Walmart store in Shenzhen, Guangdong province, for example, the shelves are adorned with colorful hues and playful, eye-catching designs — an obvious appeal to small families and younger shoppers.

In addition to these fresh aesthetics, popular brand collaborations and viral cultural elements have made their way into limited-edition gift sets in an effort to stimulate demand.

Walmart's shelves now feature products including Zootopia 2 IP licensed items, countdown calendar chocolates and candy blind box sets in collaboration with leading confectionery producer Hsu Fu Chi, as well as cilantro-flavored yogurt, and "Mahjong Tile" biscuits symbolizing "a great start".

Zhu Jun, senior vice-president of Walmart China, said that Spring Festival celebrations are diversifying.

"Whether it's family reunions, travel, or self-care relaxation — they all reflect today's customers' pursuit of a better life," he said.

Jason Yu, general manager of CTR Market Research, said today's consumers are placing greater value on individuality, emotional connection, and design appeal. "By incorporating popular trends — vibrant colors, modern designs, and new intellectual properties — brands can break free from the homogeneity of traditional Spring Festival offerings and create products that resonate with younger consumers," he said.

This evolution is not only aesthetic, but also represents new opportunities for innovation, particularly within the growing private-label sector.

Private-label products are now central to the fast moving consumer goods market in China. According to the 14th China Shopper Report 2025, jointly released by Worldpanel and Bain & Company, private-label goods accounted for 2 percent of FMCG sales in the third quarter of 2025, reflecting a 44 percent growth over the prior two years.

Retailers are moving quickly to tap into this demand, expanding their private-label portfolios by leveraging shopper insights and integrated supply chains. Retailers such as Walmart, or Wumart, no longer just keep pace with consumer trends, they are proactively meeting them by developing exclusive products tailored to these new preferences.

For example, Walmart China, in particular, has embraced this trend with its "Marketside" line, which focuses on fresh ingredients, health-conscious options, and simple formulations. The company has developed nearly 1,000 stock-keeping units under its private label, a segment that, while still in its early stages, has already become a key component of Walmart's overall strategy, said Zhu.

Zhu said that the company is expanding its private-label offerings as part of a larger format shift, which emphasizes meeting the evolving needs and preferences of consumers. By prioritizing partnerships with leading brands and cocreating products with suppliers, Walmart is positioning itself for long-term growth, he added.

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