Private labels need 'proper mechanism'

Chinese consumers are increasingly becoming aware of private label products but they are still limited in stores in the country unlike foreign countries where they are common.

This is because "a proper mechanism is yet to be established," Brian Sharoff, president of the Private Label Manufacturers Association, said at the annual Private Label Fair, a three-day event that opened yesterday at the ShanghaiMart.

Private label products are those branded with the name of retailers, especially supermarkets and hypermarkets. For new players, a private label can save marketing and distribution costs as well as help suppliers bypass tedious procedures for selling brand-less products at big retailers.

"But it usually takes more than six months for a retailer in China to select a private label manufacturer due to quality control considerations," Sharoff said. "This is really too long for a producer to wait, especially in the fast moving consumer goods industry."