Since last year, the word "white label" has dominated chinese retail and e-commerce, from clothes and fmcg to appliances, it seems that no other segment has been affected by such a close-quarter battle against white-label products.
No other segment faced such a close-quarter battle against white-label equivalents than beauty, specifically c-beauty, as opposed to beauty white label retailer-owned private labels, such as asda's george or costco's kirkland.
The term white label has quickly come to refer to the manufacturer's own brands, as well as the e-tailer's own brands, who are gaining attention, especially on e-commerce and social commerce platforms such as e-commerce and social commerce platforms such as e-commerce and social commerce platforms.
The white labels often referred to as being part of the supply chain and retail market in april 2024. tiktok's chinese sister app douyin started reporting on the sudden influx of "white label" products that were entering the market in april 2024. these oem-turned-labels quickly found an audience by june, with "affordable substitute" () and "rational consumption" being the most common consumer trends, these oem-turned-labels quickly found a following.
White labels were everywhere, from sales livestream channels to alibaba's enabling ordering that was once unhearded.
However, sales from 1688 merchants (usually manufacturers) directly from taobao, including creator, made it to douyin's list of fastest-growing brands.
For this reason, analysts often referred to the massive exposure and traffic generated by the website, which made it so popular in the first half of 2024. many others also believe it was a change of trust from the platform, which made it so popular.
Following 618, e-commerce platforms began to shift away from absolute low prices to focus on gross merchandise quantity (gmv).
Some white-label companies have devolved into unsustainable price wars, while others have turned themselves into brands, which has resulted in the fact that well-known c-beauty brands such as kans and proya have remained at bay.
Although white-label rivals have also made it to the top of the sales charts in december, there has been a significant reshuffling among these brands.
Douyin, one of the key white labeling companies, has announced that it will control brands and white labels under one roof, although not as two distinct groups.
The reason it gave was that over the past two years, many of the white labels' white labels had grown to become brands, so having centralisedised control would help with the dynamism between the two companies in january 2025. kans, the c-beauty brand, and proya in second place, according to douyin, while chinese brand guyu has surpassed l'oréal to be number three on the top 20 skincare companies on the list.
7 of the 13 chinese brands are classified as white labels, from dcexport, lefilleo, to hexkin, compared to only 3 in january 2024, with 7 of the 13 chinese brands listed as white labels, including 3zt (), xiaoshumei, and ell, out of a total of 7 of the top 20 cosmetics/fragrance/beauty products, including 3zt (), xia 3zt's beauty ranking has risen dramatically since being in the top 2023, with familiar names such as joyruqo and dr wen falling out of the top 20 positions, while 2024 lists have changed dramatically, with popular names such as joyruqo and dr wen falling out of the top 20. although white-label companies are exempt from the effort of retaining a brand, they are also limited to a short-term strategy, in beauty or other industries, with the majority of their sales coming from kans in january 2024. however, when asked about specific hero products, particular livestreamers, and influencers, it becomes difficult for them to distinguish between each other.
2025: pundits question whether it is likely for white labels to turn into brands and become profitable, while analysts worry more about how deeply interconnected these labels are with their channels and platforms, as well as the short-term outlook they have.
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