Introduction Private label

Brand owned not by a manufacturer or producer but by a retailer or supplier who gets its goods made by a contract manufacturer under its own label. Also called private brand.

Private brands are also known as

Corporate brand

Store brands

Own brand

Retailer brands.

Private Brand Growth

Some of the factors for this growth include:•Consumer Value - Store brand programs offer high quality products at retail prices that are often 10-30% less than national brand varieties.•Retailer Profitability - On the average, retailer's profit margins on private brand products are 10% higher than the profit margins on national brands.•Consumer Confidence - Educated consumers recognize the value of private brand products and are unwilling to pay premium prices for national brand products.

Contribution of sales

GROWTH OF PRIVATE LABEL BRANDS• The Marketing Whitebook 2010-11, the retail sector in India was worth $410 billion, of which organized retail comprised 5% at $51 billion. •private label brands constitute 10-12% of organized retail in India.

RISE OF PRIVATE LABELS

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• Gaining prominence in big retail outlets • Recession spears private label appeal

• Brands in their own right • Private labels do matter : - Highly profitable - Bargaining Power - Improved planning - Consistency in stock availability

“Five years back, our private label brands were around 17.5% in terms of sales and today they are almost 22.5 %— at 5% increase

- says Salil Nair COO, Shoppers Stop Ltd.

Growth driversRetailers need differentiation and better profit margins. They imitate designer brands which will reduce their R&D expenses.Better margin and better control in deliveries.Independent pricing strategy.Brand equity and loyalty.

SOURCE:- Private label from consumer perspective 2010

Private Label Apparel Brands

SHOPPERS STOP PANTALOONS

Austin Reed

UMM/ Lombard

Wear Denim/ RIG

Biba / kashish/Stop

7 East / Jeevah / Life

Mario Zegnoti/ Tantra

T Base / Veda

Vettorio fratini/ Mens wear

Ajile

Rangmanch

Annabelle

Honey

Private Label Apparel Brands

WALMART BIG BAZAAR

OP/ STARTER

AFL

NIGH HOOD

FADED GLORY/ PLAINS

GEORGE

DICKIES

MISS TINA/ WHITE STAG

SASSON

SPUNK

SHRISHTI

D J& C

SACH

Challenges faced by Private Labels

Higher risk of inventory. Higher Research and Development expense. Markdown or return allowances will not be

available. Failure of the product will create a negative

image about the retailer. More marketing expenses.

Private labels are slowly becoming the protagonist in the big Indian retail growth story.