Private labels are brands owned and marketed by modern retailers at prices lower than national brands across categories.These are normally in store brands.
Higher margins,cheaper price and better bargaining power for the retailers are the main reasons for growing of private labels.In the long run,retailer can use the private labels to attract customers.And the trend is more in package foods.India is a price sensitive market, and in certain products categories, brands are not present at price points affordable to all. In such cases,private label to fill the gap, which is around 15-25% cheaper than the national brand
For example the Tasty Treat's Cornflakes competes with Kellogg cornflakes,Tasty Treat Noodles ,Sach tooth paste etc.Aditya Birla has in-house labels in more than 40 categories.The list includes Feasters Noodles,110% Dishwash Bar,Kitchens Promise Pickles and Fresh-ODent toothbrushes.
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Some Iformation
Whats their share of organised retail product market in India
Private labels constitute around 10-12 % of the organised retail product market in India
Why are private labels growing
Higher margins,cheaper price and better bargaining power for the retailers.In the long run,retailer can use the private labels to attract customers.
Whats the degree of their penetration among Indian retail companies
Its highest in Trent with 90%,followed by Reliance Retail (80%),Pantaloon (75%),Nilgiri's (38%),Indiabulls /Piramyd (30%) and Foodworld (22%).
Source: KPMGs report titled Indian Retail: Time to Change Lanes
Higher margins,cheaper price and better bargaining power for the retailers are the main reasons for growing of private labels.In the long run,retailer can use the private labels to attract customers.And the trend is more in package foods.India is a price sensitive market, and in certain products categories, brands are not present at price points affordable to all. In such cases,private label to fill the gap, which is around 15-25% cheaper than the national brand
For example the Tasty Treat's Cornflakes competes with Kellogg cornflakes,Tasty Treat Noodles ,Sach tooth paste etc.Aditya Birla has in-house labels in more than 40 categories.The list includes Feasters Noodles,110% Dishwash Bar,Kitchens Promise Pickles and Fresh-ODent toothbrushes.
Read more
Some Iformation
Whats their share of organised retail product market in India
Private labels constitute around 10-12 % of the organised retail product market in India
Why are private labels growing
Higher margins,cheaper price and better bargaining power for the retailers.In the long run,retailer can use the private labels to attract customers.
Whats the degree of their penetration among Indian retail companies
Its highest in Trent with 90%,followed by Reliance Retail (80%),Pantaloon (75%),Nilgiri's (38%),Indiabulls /Piramyd (30%) and Foodworld (22%).
Source: KPMGs report titled Indian Retail: Time to Change Lanes
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