PRIVATE LABELS /

STORE BRANDS
 Private brands are brands owned, merchandised and sold by
the retailers themselves

 Contract manufacturing, large national brand, regional brand

and small quality-specific manufacturers are sources of private
labels
 Initially viewed as low – cost imitation of branded products

 Known as cheaper and nasty substitutes to national brands

 WHERE AND WHY DID IT START??
 Built retail empires solely on the development of its own brands
(A&P, ALDI, MIGROS, TESCO)

 The shift of power from national brand marketers to national

retailers

 Offering up of manufacturing capacity for private labels

 Strong house brand

PRIVATE LABELS V/S NATIONAL BRANDS
(European & US markets)
Till 2008
 Excess expenditure on advertising by national brands

 Innovation to provide superior value

 Introduction of new products – competitive advantage – brand

equity
 Private labels were not established and only focused on price utility

Since 2008
 Private labels have acquired 25% & 50% in most European
markets and nearly 20% in U.S
 Intensifying involvement in new product development – fueled
growth
 Consumer familiarity and improved quality has reduced initial
perception of risk involved in purchase of private labels
 THE INDIAN SCENARIO

 Higher margins and better bargaining power for the retailers

 Perspective of customer is changing
 Able to offer innovation similar to established brands
 Customer gets similar quality at a cheaper price
 Gaining significance in the
apparel, home care,
consumer durables and
FMCG segments

 Slowly gaining more store

space

 Constitute 10-12% of
organized retail in India

 Current economic downturn

Five years back, our private label brands were around 17.5%
In terms of sales and today they are almost 22.5% -
A 5% increase.
So now we have started dedicating a bigger space for this.
All our brands have good representation in our stores
So that they have a visual impact. 

Mr. SALIL NAIR

Customer Care Associate &
COO, Shoppers Stop Ltd.
 BENEFITS
 Brand name

 Higher margins

 Differentiation

 Strong customer loyalty

 Freedom with pricing strategy

 Enables control over sales, marketing & distribution

 Private label rights allow alteration of the product

 DISADVANTAGES

 Question of consistent quality brands

 Same packaging, changed manufacturer

 Customer’s perspective

 Advertising

 Improper brand portfolio management results in a negative impact

on customers
 FUTURE OF PRIVATE LABELS
ing “Planni
p e n ng to la
o
to lets t o othpas un c h o u
a r d t t e b r a r ow n
w
for resh o u S A C H an n d u n d er t
ng d n e w soup he nam
o o ki c e f
r y” u n d e r T a n e
“L relian ou n t A S T Y TREA d n o odles
5 0 e c T ”
2 ss th
acr o  Identify the needs of your

customer base
 Leverage the consumer
connection
 Communicate at the point of sale
“Pan  Manage brand architecture
with taloon
r to range
its n VLCC f etail ar e p la n n in g
p are l
e o
and w line r manu in talk
e “We ar the men’s ap
e
be a
ut y
of h f
ealt acturin
s upgrad e n t it,
g m
prod
ucts
h g and se r e qu ired”
e r
” if furth
THANK YOU