Supermarket chains struggle to compete with e-commerce and maintain profit margins as brand loyalty shifts to online retailers

Chinese supermarkets face declining foot traffic and margin compression from dominant e-commerce platforms, forcing them to develop private label products to differentiate and improve profitability. Traditional retailers lack the brand recognition, supply chain efficiency, and customer data capabilities of online competitors, making it difficult to launch and scale own-brand products effectively. Current solutions fail because supermarkets lack expertise in product development, sourcing, quality control, and marketing needed to compete with established national brands.