This presentation will help you to understand the difference between private labels and brands in retail industry.The pricing and promotional strategy used by retailers in Indian retail industry.

1. Comparison between brands v/s private labels
of “Shoppers Stop” limited Jalandhar.
Presented by:
K.D.Shukla.

2. Objective of the study:
• To understand the importance of private labels.
• Study of total spending capacity of customers in shoppers
stop.
• To understand the pricing strategy of private labels in
shoppers stop.
• To compare private label pricing of shoppers stop with
Lifestyle.
• To compare promotions of PLB of shoppers stop with
Lifestyle.

3. Scenario of current Indian
retail industry:
• The Indian retail market is estimated to be US$ 450 billion.
• It contributes up to 20% in India’s total GDP.
• Fifth largest retail industry In the world.
• Expected to grow at the CAGR of 12%.
• Organized retail share in total market is only 4%.
Source:http://tejas.iimb.ac.in/articles/98.php

4. Current scenario of Indian
apparel industry:
• Current estimated size is US$ 80billion.
• Currently growing at the CAGR of 11%.
• Expected to grow to $220billion till 2020.
• Menswear is contributing 43%, 38% women's wear and 29%
kids wear.
• 21% contribution of private labels.

5. Current scenario of Shoppers
Stop:
• Founded in 1999.
• Currently having 61 stores including 2 airport stores.
• Growing at the CAGR of 16%.
• Total revenue of Rs. 25597 millions.
• Total space of 3.5 million square feet .
• 40.2 million footfall in 2012-13.
• 14000 employees.
• Source: shoppers stop annual report 2013.

6. Key managers of shoppers
stop Board of Directors
S.No Name Designation
1 Mr. Chandru L Raheja Chairman / Chair Person
2 Prof. Nitin Sanghavi Director
3 Mr. Shahzaad S Dalal Director
4 Mr. Ravi C Raheja Director
5 Mr. Nirvik Singh Director
6 Mr. Neel C Raheja Director
7 Mr. Gulu L Mirchandani Director
8 Mr. Deepak Ghaisas Director
9 Mr. Govind Shrikhande Managing Director
10 Mr. B S Nagesh Vice Chairman
Key Executives
S.No Name Designation
1 Mr. Sanjay Chakravarti Finance(Head)
2 Mr. Prashant Mehta Vice President - Legal & Co. Secretary

7. Current scenario of Shoppers
Stop:
• Conversion ratio of 23% in 2012-13.(28% in 2008-2009).
• Apparel contribution is 59.9% in year 2012-13.
• Private label contribution in 2012-13 was 15.9% and growing
at the rate of 16%
• Average selling price increased from 821 in 2009 to 1062 in
2013.
• Average transaction size 2481 RS.
• Source: shoppers stop annual report 2013.

8. What is private label and
national brand.
Private labels National brands
Private labels are produced by,
distributed by, and carry the name of
the retailer.
National brands are produced by,
widely distributed by, and carry the
name of the manufacturer.
Limited distribution Wide distribution
High margin for retailer Low margin for retailer
Control on products. No control on products.

9. Need of private labels
• Higher margin.
• Control.
• Negotiation.
• exclusiveness.
• Store loyalty.

10. Factors affecting the buying
Private labels Brands
Store display Brand loyalty
Packing Brand experience
Credibility Brand image
Advertising Fitting
Promotions Comfort
Price Fabric quality
Variety Price
Behavior Durability
Quality
Availability

11. Share of PLB in total sales.

12. Total footfall:

13. Conversion rate:

14. Average selling price:

15. Transaction size:

16. Shrinkage rate:

17. Consumer’s Perception of In-house Brands
versus Established Brands

18. Private label in men’s formal and semi formal
section
Private label Shirts Trousers Shirts(SF) T shirts
STOP 999-1799 1299-1699 - -
Acropolis 799-899 - - -
Austin reed 1299-2099 1700-1900 - -
Vettorio
fratini
- - 1599-2100 -

19. Brands in men’s formal and semi formal section
brands shirts Trousers T shirts denim
Wills lifestyle 1499-2300 1699-1799 - -
Zodiac 1699-2300
Arrow 1599-2599 1399-2199
Louis phillipe 1799-2399 1699-2199
Van huesen 1499-2000 1599-2000
Park avenue 1299-2199 -
blackberry's 1695-1795
Indian terrain 1599-2299 1099-1199 1699-1899

20. Findings:
• Starting range in formal section is priced below 45% than
brands.
• Word of mouth is positive.
• Pricing is at par with some of well established brands.
• Advertising is missing.
• POS advertising is missing.
• Display .
• Brand recognition is missing.

21. Brands in men’s casual section
Brands Shirts T shirts Denim
Mufti 1500-1800 1299 2199-3299
Numero Uno 1599-1699 799 1800-2499
Pepe jeans 1599-1899 1599 1999-3000
UCB 1799-2599 799-1599 1799-2999
Lee 1399-1899 1099-899 1900-3000
Wrangler 1395-2099 995-1295 2000-3000

22. Private labels in men’s casual section
Private label shirts trousers T shirts denim
Life 1299-1499 599-1199 1499
i Jeans wear 1399-1700 400-1299 1500-1800

23. Findings:
• Average price of shirts in brand is Rs.1400.
• PLB are priced between Rs.1299 to Rs.1700.
• Lack of variety and assortment.
• Latest fashion trend cloths were missing compared with
brands.

24. Private labels in women’s western wear
private
labels
Shirts Deni
m
Legging tops dresses trouse
rs
shurgs
STOP - - - 299-
1099
999 1299 -
LIFE 1199-
1899
- - - 1099-
1799
-
Insense - - - 899-
1199
1299-
1499
- -
i-
Jeanswear
1199 1250 - 499-
999
- - -
Latin
quarters
- - 999 999-
1690
1800-
2490
- 999-
2160
Noi - - - 699-
1299
- - -
ED - - - 599-
1199
- - -

25. Brands in women’s western wear
Brands Shirts Deni
m
Leggi
ng
Tops dress
es
Trou
sers
Tuni
c
shurg
s
shorts
Remanika - - - 390-
1800
1200-
2200
- 1100-
1500
980-
1200
-
Levis 1799 1799-
2399
- 1399 - - - - -
Vibe - 1299-
1899
- - - - - - 1249-
1299
Sepia 1399-
1499
- 899 899-
1199
1099-
1899
899 - - 899
Gypsy - - - 1099-
1599
1995 - - - -
Wills 1299-
1999
- - - - 1699-
2499
- - -
Global
desi
- - 799 1099-
1899
- - 1295-
1795
- -

26. Finding (women’s western):
• Prices are charged at par to brands.
• Quality of fabric is good.
• Staffs are cooperative and product knowledge is good.
• Shorts and shirts is not available in private labels.
• Legging is missing in almost all the private labels.
• Display is attractive and changes regularly.
• Advertising is their on social media platforms such as you
tube.
• Regular promotional schemes.

27. Private labels in ethnic wear
Private
label
Kurti Leggings Dupatta Salwar
STOP 699-1499 - - -
Kashish 899-1799 - - -
M&M - 499 299 599-649
Haute
curry
799-1599 - - -

28. Brands in ethnic wear
Private
label
Kurti Suites Tops
W 799-1099 - 999-1099
Biba - 1799-6000 -
Sana 599-999 - -

29. Findings(ethnic wear):
• Ethnic wear section is doing good in terms of private labels.
• Most of the assortment is private labels.
• Pricing is competitive in kurti section.
• Display is attractive.
• Brand awareness missing.

30. Pricing with comparison with lifestyle
Categories Shoppers stop Lifestyle
Men’s formal 700-2099 599-1400
Men’s casual 400-1800 300-1700
Women’s western 299-2490 199-1899
Women’s ethnic 299-1799 99-1500

31. Findings:
• Shoppers stop pricing in formal section is almost 50% higher
than lifestyle.
• Shoppers stop men’s casual pricing is almost same but when it
comes to assortment lifestyle outplays shoppers stop.
• Shoppers stop women’s western wear pricing 25% higher than
shoppers stop.
• Ethnic sections pricing is higher in case of shoppers stop and
priced at least 20% higher than lifestyle.

32. Promotional schemes comparison with lifestyle
Categories Shoppers stop Lifestyle
Men’s formal Up to 50% off Up to 50% off
Men’s casual Up to 50% off Up to 50% off
Women’s western Up to 50% off Up to 50% off
Women’s ethnic Up to 50% off Up to 50% off

33. Findings:
• Promotional offers are exactly same in both the stores.
• Additional 10% off is there on the first citizen card holder of
shoppers stop and 15% off on lifestyles inner circle.
• Promotion and exposure is more with PLB of lifestyle.
• Variety and assortment in lifestyle casual section is higher .
• Shoppers stop which has only two brand life and stop
compared with lifestyles Forca,MAX, Code, Kappa, fame
forever.

34. Recommendations:
• Prices should be reduced.
• Should take the advantage of odd size fitting.
• Trendy merchandise should be introduced in casual section.
• Display should be neat and tidy and look attractable.
• POP advertising required.
• Employees should be positive about PLB.
• Conversion rate can be increased by adding merchandise
which customer buys without planning (impulse buying).

35. Conclusion:
• Having good mix of private label and brand. i.e. 21% par to
industry average.
• Huge growth opportunity.
• If private labels will come with some exclusiveness then
chances of growth is more.
• Employee training and product knowledge .

36. Thank you.