IntroductionPrivate labelBrand owned not by a manufacturer or producer but by a  retailer or supplier who gets its goods m...
Private Brand Growth  Some of the factors for this growth include:•Consumer Value - Store brand programs offer highquality...
Contribution of sales
GROWTH OF PRIVATE LABEL BRANDS• The Marketing Whitebook 2010-11, the retail sector inIndia was worth $410 billion, of whic...
RISE OF PRIVATE LABELS• Gaining prominence in big retail outlets• Recession spears private label appeal• Brands in their o...
Growth drivers  Retailers need differentiation and better profit margins.  They imitate designer brands which will reduc...
SOURCE:- Private label from consumer perspective 2010
Private Label Apparel                            Brands     SHOPPERS STOP                           PANTALOONS       Austi...
Private Label Apparel                         Brands      WALMART                             BIG BAZAAR    OP/ STARTER   ...
Challenges faced by Private Labels Higher risk of inventory. Higher Research and Development expense. Markdown or retur...
Private labels are slowly becoming theprotagonist in the big Indian retail growthstory.
PRIVATE LABEL BRAND
PRIVATE LABEL BRAND
PRIVATE LABEL BRAND
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PRIVATE LABEL BRAND

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PRIVATE LABEL BRAND

  1. 1. IntroductionPrivate labelBrand 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 asCorporate brandStore brandsOwn brandRetailer brands.
  2. 2. Private Brand Growth Some of the factors for this growth include:•Consumer Value - Store brand programs offer highquality products at retail prices that are often 10-30% less than national brand varieties.•Retailer Profitability - On the average, retailersprofit margins on private brand products are 10%higher than the profit margins on national brands.•Consumer Confidence - Educated consumersrecognize the value of private brand products andare unwilling to pay premium prices for nationalbrand products.
  3. 3. Contribution of sales
  4. 4. GROWTH OF PRIVATE LABEL BRANDS• The Marketing Whitebook 2010-11, the retail sector inIndia was worth $410 billion, of which organized retailcomprised 5% at $51 billion.•private label brands constitute 10-12% of organized retailin India.
  5. 5. RISE OF PRIVATE LABELS• 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
  6. 6. Growth drivers Retailers 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.“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.
  7. 7. SOURCE:- Private label from consumer perspective 2010
  8. 8. Private Label Apparel Brands SHOPPERS STOP PANTALOONS Austin Reed Wear Denim/ RIG Biba / kashish/Stop UMM/ Lombard 7 East / Jeevah / Life Ajile Mario Zegnoti/ Tantra Rangmanch T Base / Veda AnnabelleVettorio fratini/ Mens wear Honey
  9. 9. Private Label Apparel Brands WALMART BIG BAZAAR OP/ STARTER NIGH HOODFADED GLORY/ PLAINS AFL GEORGE SPUNK DICKIES SHRISHTIMISS TINA/ WHITE STAG D J& C SASSON SACH
  10. 10. 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.
  11. 11. Private labels are slowly becoming theprotagonist in the big Indian retail growthstory.
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