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Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
Retailing
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Retailing

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This is a short presentation related to Retailing with an special emphasis on Private Labels / Store Brands.

This is a short presentation related to Retailing with an special emphasis on Private Labels / Store Brands.

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  • - if you can’t get the product right, there are major consequences such as: Big mark downs which lowers gross margin and profit Negative image with customers, less bargaining power with national brand suppliers Established brands have been doing this for years, they have gone through the issues with design, production, sourcing and the know how.
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    • 1.  
    • 2. What is Retailing? <ul><li>All the activities involved in selling goods or services directly to final consumers for their personal, non business use. </li></ul><ul><li>Retailers - businesses whose sales come primarily from retailing. </li></ul><ul><li>Retailers can be classified as: </li></ul><ul><ul><li>Store retailers </li></ul></ul><ul><ul><li>Non store retailers </li></ul></ul>
    • 3. What is Organized Retail ? <ul><li>Any retail outlet chain (and not a one shop outlet) which is professionally managed , (even if it is family run) has accounting transparency (with proper usage of MIS and accounting standards) and organized supply chain management with centralized quality control and sourcing can be termed as an organized retailer in India. </li></ul><ul><li>(Dept. of Company Affairs) </li></ul>
    • 4. Classification By Product Line Specialty Stores Department Stores Supermarkets Discount stores Narrow Product Line, Deep Assortment e.g. Food world, Music world, Health and Glow Large retail space, Wide Variety of Product Lines e.g. West side, shoppers stop, lifestyle, pantaloons, Spencer's Self service, Wide Variety of Food, Laundry, & Household Products e.g. food world, Trinetra, Ponnu, Modern, Nilgiris Less than retail price, profits through volumes e.g. Subhiksha, Margin free, Supply co., Pantaloons, Big bazaar, Gaint hyper market Hypermarkets Huge Superstores, wide variety of product range e.g. Giant Hyper market, Number one shoppers city, Sahara mall etc. Store Type Length and Breadth of Product Assortment
    • 5. PRIVATE BRANDS/MERCHANDISE BRANDS <ul><li>Introduction :- </li></ul><ul><li>Private brands also known as store brands, own brands and merchandise brands. </li></ul><ul><li>Private brands are products developed by a retailer and available for sale only from that retailer. </li></ul><ul><li>Private brands products that carry the name of the seller, not the manufacturer </li></ul>
    • 6. <ul><li>These are available in a wide range of industries from food to cosmetics to web hosting. </li></ul><ul><li>They are often positioned as lower cost alternatives to regional, national or international brands, although recently some private label brands have been positioned as &quot;premium&quot; brands to compete with existing &quot;name&quot; brands. </li></ul>
    • 7. <ul><li>Some of the retail players having private brands in India are as follows: </li></ul><ul><li>Shoppers' Stop </li></ul><ul><li>Westside </li></ul><ul><li>Big bazaar </li></ul><ul><li>Globus </li></ul><ul><li>Spencer's Daily </li></ul><ul><li>Reliance fresh </li></ul><ul><li>Sahara – Sahara mall </li></ul><ul><li>Music World </li></ul>
    • 8. Types of Private Label <ul><li>Generics </li></ul><ul><li>Copy cats </li></ul><ul><li>Value Innovators </li></ul><ul><li>Premium Store Brands </li></ul>
    • 9. GENERICS private brands <ul><li>Generic – very low promotional , very low margin. </li></ul><ul><li>Same or better quality at better price , average 20-40% less than national brands. </li></ul><ul><li>Eg.- Big bazar </li></ul><ul><li>“ LOOKS” = “LUX” </li></ul><ul><li>(6) = (10) </li></ul><ul><li>Both Lux & Looks are kept in same shelf for sale. </li></ul>
    • 10. COPY CATS private brands <ul><li>In this category only the brand name will be copied (which almost sounds like original). </li></ul><ul><li>The copycats are mostly manufactured within the company by the retailer him self. </li></ul>
    • 11.  
    • 12. VALUE INNOVATORS <ul><li>A little bit of innovation happens & brand provide something more than national brand at affordable price. </li></ul><ul><li>Eg - Croma offers its own AC & TV under brand name CROMA. </li></ul>
    • 13. PREMIUM STORE BRAND <ul><li>Premium store Private Labels are more expensive than national brand & will have superior quality, good features & design. </li></ul><ul><li>Eg.- In Globus F21 is very superior quality wise & offers better features & design especially for women segment. </li></ul><ul><li>In west side 80% of the merchandise are own brand & they are far superior in quality as compared to national brand. </li></ul>
    • 14.  
    • 15. Private brands in India: <ul><li>Private brands in India in a growing stage. It will be difficult to get the details of sales in India because of the highly unorganized structure of Indian retailing. </li></ul><ul><li>Private labels become national lifestyle brand </li></ul><ul><li>Eg- globus , west side </li></ul><ul><li>Biggest threat to national brands </li></ul>
    • 16. <ul><li>A recent survey conducted by Ipsos MORI for the Private Label Manufacturers Association found that 41% of shoppers now identify themselves as &quot;frequent&quot; buyers of store brands or private labels. Almost seven out of ten of those surveyed agreed that the private-label products they buy are as good as, if not better than, their national brand counterparts. </li></ul><ul><li>Private labels started as cheap, inferior products and more recently became copycats. Today, best-practice retailers are using &quot;premium store brands&quot; to help position the retailer as a &quot;brand.&quot; The emergence of the new premium private labels is the hottest trend in retailing. </li></ul>
    • 17. <ul><li>Costing of National Brand Vs Private Label </li></ul>
    • 18. Advantages <ul><li>More margin for retailers </li></ul><ul><li>Eg.- Shoppers stop have only five private brands and it accounts to 20% of their annual turnover. </li></ul><ul><li>Private labels can offer huge discounts which the national brands cannot offer. </li></ul><ul><li>Eg.-Big Bazzar offers noodles, pasta, soups under their label “ TASTY TREAT ”. They introduced cornflakes for Rs 99 with free bowl worth Rs 60. </li></ul><ul><li>Rise of customized products. </li></ul><ul><li>Eg- Spencers daily’s private label “ EKTAA ” has food items based on cultural and geographical considerations. </li></ul>
    • 19. <ul><li>Some time private label will be priced more than national brand by offering superior quality & can even attack national brand. </li></ul><ul><li>Eg.- John miller is a private label by pantaloons which competes John players. </li></ul><ul><li>Food Bazaar's private label in snacks category is dominant wit h 16% share overcoming ITC’s Bingo. </li></ul><ul><li>Consumer report survey compared 21store brands with premium brands and ‘3 times store brands won outright and 11 times it was a tie’. </li></ul><ul><li>Walmart’s great value potato chips tied with Lay’s potato chips. </li></ul>
    • 20. Private Label Pros & Cons <ul><li>PROS </li></ul><ul><li>Exclusivity & differentiation </li></ul><ul><li>Bring customer loyalty </li></ul><ul><li>Better margin </li></ul><ul><li>Better control in deliveries </li></ul><ul><li>Brand equity </li></ul><ul><li>Freedom in pricing strategy </li></ul><ul><li>Increase bargaining power with both national brands and PL factories </li></ul><ul><li>CONS </li></ul><ul><li>Inventory risk </li></ul><ul><li>Higher R&D expense </li></ul><ul><li>Higher marketing expense </li></ul><ul><li>No markdown or return allowance from branded suppliers </li></ul><ul><li>If product fails, will create negative image </li></ul><ul><li>Quality control, complex production & import issues </li></ul>
    • 21. PRIVATE LABELS IN VARIOUS PRODUCT LINE <ul><li>IN APPARELS </li></ul><ul><li>Pantaloons: </li></ul><ul><li>Bare – Denim : Agile – Sports wear </li></ul><ul><li>Rig - Weekend Wear </li></ul><ul><li>Westside: </li></ul><ul><li>Gia – For women </li></ul><ul><li>Stone river classic – Teens </li></ul><ul><li>Too fast for u – Young men </li></ul>
    • 22. PRIVATE LABELS IN VARIOUS PRODUCT LINE <ul><li>IN COSMETICS </li></ul><ul><li>Pantaloons: Star and Sitaara </li></ul><ul><li>IN GROCERIES </li></ul><ul><li>True Mart – Uttam (Cereals, Masala Powder, Dry Fruits ) </li></ul><ul><li>Big Bazaar – Tasty Treat </li></ul>
    • 23. FDI in Multi Brand Retail Trade <ul><li>40% of products sold in Wal-Mart are store brands, or products offered by Wal-Mart and produced through contracts with manufacturers. </li></ul><ul><li>  It had 38 stores operating with 1,500 employees and sales of $44.2 million </li></ul><ul><li>The proposed site of Walmart India is 2,24,000 Sq ft </li></ul><ul><li>They will be composed of Super star, discount store, neighborhood stores </li></ul>
    • 24. CONCLUSION <ul><li>Retailer private labels have come a long way. Banish the old image of cheap products. Today's sophisticated retailers are successfully experimenting with premium store brands. </li></ul><ul><li>Rather than perceiving them as a poor cousin to manufacturer brands, many consumers can be persuaded to pay more for top quality private labels. </li></ul>

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