China retail and appliance markets shift toward private labels and new standards

China's retail and appliance sectors are undergoing significant shifts driven by new regulatory standards and changing consumer habits. In the appliance market, new national standards for energy efficiency and sterilization are reshaping purchasing logic. Midea has positioned itself as a leader in this transition, offering products that meet strict new requirements for energy savings and high sterilization rates, such as its PST+7.0 purification technology.

Simultaneously, the retail landscape is seeing a massive surge in private label brands. In 2025, sales of supermarket private labels in China exceeded 380 billion yuan, representing a 17% year-on-year increase. While the market share of these brands remains lower than in Europe or the US, consumer acceptance is growing, with 56% of Chinese consumers expressing willingness to purchase more private labels due to perceived cost-effectiveness.

This shift is largely driven by supermarkets moving away from the traditional “shelf rental” model—relying on fees from brand manufacturers—toward a model that captures higher margins through their own brands. This transition is most prominent in categories with low brand differentiation, such as water, tissues, and detergents, and is seeing rapid penetration in lower-tier cities.