Private Lable Products
...Organized retail is on the threshold of a boom in India. But as companies line up to grab a bigger and bigger slice of the retail pie, another battle is likely to change the face of the industry -- the one between the manufacturer brands and the retail chains’ private label brands. Worldwide experience shows that as retailers become more powerful, they have increasingly focused on their own brands at the expense of manufacturer brands.
Private labels, also called store brands, are made by the retailer or a third-party supplier to the retailer's specifications. Private label goods and services are available in a wide range of industries from food to cosmetics to web hosting.. Historically, private labels were seen as low-priced, low-quality products. In recent years, however, companies have started using private labels to market higher quality items, and many believe high-quality private labels will increase their presence.
There has been a significant increase in private label brands in the recent years worldwide. In Europe, private label goods now account for about 45% of products sold in supermarkets, compared to 25% in the USA. Wal-Mart, for instance, has a 40% private label representation in their stores. Survey shows that 50 per cent of Indian retail will be occupied by private labels within the next 10 or 15 years.
In this paper the authors are going to bring out the consumer perception and the challenges faced by Chennai retailers in marketing their private label brands.
1. Introduction
1.1 Meaning
Private label products or services are typically those manufactured or provided by one company for offer under another company’s brand. Private label goods and services are available in a wide range of industries from food to cosmetics to web hosting. They are often positioned as lower cost alternatives to regional, national or...
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