Private label brands are owned by retailers rather than manufacturers. They are also known as store brands, corporate brands, or retailer brands. Private label brands have grown due to offering lower prices than national brands while maintaining quality, providing higher profit margins for retailers, and gaining consumer confidence. In India, private label brands make up 10-12% of organized retail. Their growth is driven by retailers' needs for differentiation and margins as well as independent pricing strategies and brand equity. However, private labels also face challenges like higher inventory and R&D costs and potential damage to a retailer's image if a product fails.

1. 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.

2. 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.

3. Contribution of sales

4. 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.

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. 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.

8. SOURCE:- Private label from consumer perspective 2010

11. 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 Annabelle
Vettorio fratini/ Mens wear Honey

12. Private Label Apparel
Brands
WALMART BIG BAZAAR
OP/ STARTER NIGH HOOD
FADED GLORY/ PLAINS AFL
GEORGE SPUNK
DICKIES SHRISHTI
MISS TINA/ WHITE STAG D J& C
SASSON SACH

13. 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.

14. Private labels are slowly becoming the
protagonist in the big Indian retail growth
story.