Private label brands still have a long way to go in Hong Kong

The 17% growth of private label brands in Hong Kong in 2011 is way below Asian peers.

The Nielsen report found that private-label brands remain relatively undeveloped in Asia and contribute less than eight percent of sales in modern trade outlets.

Growth of private label brands was highest in Taiwan, Korea and Indonesia, with sales increasing by over 20 percent.

According to Nielsen, sales of private-label products are beginning to gain traction in basic grocery categories– such as paper products, plastic wraps and water– and staples, like rice, and cooking products, where a low price is more important to shoppers.

"Private-label growth in Asia is hindered by low levels of consumer trust in categories where there is strong brand loyalty," it said.