private label brand
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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.
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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.
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Contribution of sales
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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.
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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
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“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.
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SOURCE:- Private label from consumer perspective 2010
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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
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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
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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.
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Private labels are slowly becoming the protagonist in the big Indian retail growth story.