this is presentation depicting the current scenerio of private label industry. are they encroaching the market share of manufacturers brands. Its been prepared by a student of Nirma University.

1. Private Label Brands: Encroaching the big brands share November 24, 2008 By: Dr.Hitesh Gaur

3. Source: adapted from Cotton Inc.

6. From 1996 to 2006, the average retail price declined a minimum of 9% Source: adapted and expanded from Cotton Inc. winter 2003 Product % Change Retail Channel % Change Total -8.9 Total -8.9 Jeans -5.5 Department -13.7 Slacks -11.7 National Chain -9.0 Shorts -4.9 Specialty -5.8 Sweat Apparel -12.6 Mass merchant -7.5 Shirts -8.1 Off-price -4.2 Sweaters -16.3 Other -11.2 Shirts/Dresses -6.1

10. *Sales in billions include all private label & exclusive products Macy’s percentage includes 18% private label and 15% exclusive merchandise Retailer 2006 Total Sales Private Label % to total sales Private Label Sales in USD * JC Penney $19.9 50% $9.95 Kohl’s $15.5 35% $5.42 Wal-Mart $312.4 40% $124.96 Macy’s $27 33% $ 8.9 Target $59.5 32% $19.4

20. Average price gap 37% based on quality equivalent categories Average price gap 21% based on national brand’s quality is perceived to be less than private label brands. Private Label Brands Retail $ Gross Margin National Brands Retail $ Gross Margin Price Difference betw. Brands INC (Macy’s) Dresses $79-129.00 GM 60-69% BCBG Dresses $158-178 GM 48-56% 37% Alfani (Macy’s) Men’s Polo $34.50-42.0 GM 58-68% Nautica Men’s Polo $45-55 GM 50-54% 30-39% Faded Glory (Wal-Mart) Denim $10.77-14.42 GM 38-54% Levi’s Denim For Wal-Mart $19.68 GM 45-48% 37% Sonoma (Kohl's) Menswear $ 16-28.00 GM 60-62% Dickie’s, Shady’s & etc $16 – 40.00 GM 40 – 48% 20 –25%