Korean Consumer Goods Target China's Private Brand Market with New Opportunities

The Korea Trade-Investment Promotion Agency (KOTRA) hosted the 2026 China Retail Partnering Plaza on September 1 in Shanghai to explore collaboration opportunities in the Chinese private brand (PB) market.

Amid rising demand for differentiated PB products from local Chinese retailers, 80 Korean consumer goods companies participated alongside over 100 global retailers and buyers, including ALDI and METRO. The event featured five programs, including a Korea-China consumer goods partnership forum, PB partnering consultations, export consultations, an exhibition showcase, and export consulting tailored to the characteristics of different Chinese distribution channels.

KOTRA notes that the evolving competition in the Chinese retail market is pushing retailers away from simple price-centric PB offerings toward a focus on product premiumization and differentiation. For instance, the Member’s Mark brand in SAM'S Club accounts for about 30% of total sales, while Hema reported that PB products make up nearly 50% of its sales. This trend has notably increased the need for partnerships where manufacturers and retailers collaboratively develop products, opening new opportunities for Korean companies with strong new product development capabilities.

At the event, export consultations resulted in 450 deals and a proposed contract value of $10 million. A representative from METRO expressed interest in continuing to develop innovative products targeting Chinese consumers in collaboration with Korean manufacturers, noting the success of a PB product launched last year with a Korean food company.

Another participating company stated that cooperation on PB product development could secure solid distribution channels amidst intensifying competition in the Chinese market. The event allowed participants to directly understand the needs and collaboration directions desired by local retailers.

KOTRA aims to expand the identification of partnership opportunities in the collaborative development model, assisting Korean companies with everything from product planning to supply chain management. This initiative also lays the groundwork for potential joint market entry into third countries.

According to Kim Jun-ki, head of KOTRA's Shanghai Trade Center, there is a clear trend towards premiumization and intensified competition in China's consumer market. He highlighted the increasing interest from global and local retailers in developing differentiated PB products, reiterating the agency's commitment to supporting Korean companies to leverage PB as a new avenue for expanding consumer goods exports.