With the emergence of strong retailers, private label brands have emerged as a must game in the marketplace. Where the retailer has a particularly strong identity, this "Private Label" may be able to compete against even the strongest brand leaders, and may outperform those products that are not otherwise strongly branded.

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The Thing of Private Label Vs Brand
With the emergence of strong retailers, private label brands have emerged as a must game in the
marketplace. Where the retailer has a particularly strong identity, this "Private Label" may be able to
compete against even the strongest brand leaders, and may outperform those products that are not
otherwise strongly branded.
Private Label

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WHAT MAKES PRIVATE LABELS CLICK IN INDIA
While India‘s retail industry continues to scale new heights each year,the private-label area in the
Fashion and FMCG arena has shown incredible consistency and potential. With a projection like that,
India‘s private-label sector is better poised than its counterparts in other emerging economies. It also
highlights shifting attitudes and perceptions with respect to brand loyalty.
Things Retailers Have To Do To Succeed With Private Fashion Labeling:
 Build strategic collaborative marketing partnerships.
 Conduct in depth analyses of consumer purchase attitudes and behaviors.
 Collaborate to optimize in-store inventory management programs at the store level based on
unique needs and wants of key and target consumer segments.
Companies Engaged In Private Labels

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Private labels in fashion can fetch margins of 30-60%, which is almost double the margin on other brands.
From Shoppers Stop to LifeStyle and Myntra to Jabong, all have their own private labels. Myntra seeks to
achieve 35 per cent of its revenue from its private labels in a year of time.
“I think on the private brands side, we’re going to do two different things—we’re going to scale all of our
brands, especially our ethnic collection. The other thing we will do is start selling these some labels on
Jabong, which I think will help our brands. I think with some of our brands you can expect to see offline
stores because we’re starting to actually get them to be real brands,” said Myntra chief executive Ananth
Narayanan. Myntra is about to get into an agreement with Shoppers Stop so as to sell its owned private
label brands like Roadster and HRX to leverage offline sales.
On the heels, Amazon India launched the first of its proposed six fashion private labels. The first brand,
Symbol, was launched by Cloudtail India Pvt. Ltd, its largest seller. Beauty marketplace Nykaa has gone
big with its private label as well. It is expected that Nykaa.com will report revenue of Rs 240-300 crore
by March 2017 with the sales amounting to Rs 80-100 crore. Similarly, online lingerie retailer Zivame has
discarded aggregation of brands in favour of becoming a private label business, a move that will help it
earn higher margins and bolster its bottom line.
Brand
Brand Strength
The increased strength of private labels does not mean that we should write off the brands. Indeed, the
brand is alive and reasonably healthy. It requires only dedicated management to thrive.
Purchase Process Weighs Brand-Name Products
Brand names exist because consumers still require an assurance of quality. The strongest national brands
have built their consumer equities over decades of advertising and through delivery of consistent quality.
Retailers cannot afford to cast off national brands that consumers expect to find widely distributed; when
a store does not carry a popular brand, consumers are put off and may switch stores. For most companies,
the brand names they own are their most important assets.

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Build Trade Relationships.
Retailers and national-brand producers can maximize their profits jointly without excessive emphasis on
private labels. They can do so if manufacturers take these steps:
 Many retailers stress on private-label products because they often deliver a higher percentage of
profit margins than national brands. However,they don’t always take account of promotion costs
for the store name that builds private-label demand.
 A shopper who buys a national brand rather than the private label in the same category spends
more per supermarket visit and delivers a higher absolute and percentage margin to the retailer.
The private-label shopper is not the most profitable for the retailer.
 National-brand manufacturers can suggest and pay for tests that compare the sales and
profitability of private labels goods to a brand under a controlled shelf-space allocation plan.
Conclusion
Fashion is a high profit moneymaker. However,it is still a highly personal, tactile and emotional
experience for the customer. So whether people will buy private label clothing as replacements for the
fashionable brands missing remains an open question. A proportionate blend of both can bring the best
outcome for businesses.