What: The largest market in the world (for now) is changing its nature.

Why it is important: Is it the advent of private labels for Chinese department stores just like in the rest of the world?

In 2023, China's retail market is expected to grow by over 9% CAGR by 2026, with domestic brands significantly contributing to this growth.

E-commerce brand Wudashu attributes this to the changing behaviour of Chinese consumers who seek personalised and trendy products. Retailers, in response, are developing domestic brands with suppliers to meet this demand, benefiting from reduced marketing costs and competitive products.

Despite the overcapacity issue, suppliers are now aligning with suitable retailers to ensure a healthier retail sector. Livestream shopping, a retail channel that originated in China, is also contributing to the growth, becoming a USD 512bn market.

What is behind the surge in China’s domestic retail brands?