Retailers like Aldi and Hema increase private label product offerings to improve profit margins.
According to Huxiu, a 2026 report by the China Chain Store & Franchise Association and Boston Consulting Group shows private-label share in Chinese supermarkets at 8%, with 40% of consumers willing to buy private-label products, and projections for 20-30% penetration over the next five years. The report notes Aldi's private-label share in China exceeds 90%, while Hema is around 35-40%; Hema briefly reduced SKUs to about 1,800 before expanding to about 6,000. It also explains how private labels can improve margins by changing product definition and direct connections with manufacturers.
Key facts
- 01Private-label share in Chinese supermarkets is 8% (2026).
- 0240% of consumers are willing to buy private-label products.
- 03Projected private-label penetration to 20-30% in the next five years.
- 04Aldi's private-label share in China is over 90%; Hema is around 35-40%; Hema reduced SKUs to about 1,800 and later expanded to about 6,000.
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