What does the future hold for privale label brands

1. Managing
Retailing Wholesaling and Logistics
What does the future hold for private label brands ?
SHUBHAM VERMA ,
IIT GUWAHATI

2. What are Private Labels ?
A private label is a brand that retailers
and wholesalers develop .
The largest food chain of Britain ,
Sainsbury and Tesco , sell store – label
goods which account half of their sales.
Big Bazar and Reliance mart sell
privately labelled products in India .

3. Private Label
vs
Original

4. Statistics of private Labels
19 % in 1999
25 % today
US market
30% in food products

5. Why do intermediaries sponsor their
own brand ?
(1) Costs of research , advertising ,
sales promotion ,physical distribution
is low . So, HIGHER PROFIT MARGIN
(2)Many consumers prefer store brands
in certain categories . These
preferences give retailers
INCREASED BARGAINING POWER with
marketers of national brands

6. What does the future hold for private labels ?
Experts believe that 50 percent is the volume limit that
private labels could carry due to following reasons :
( 1 ) Competition from strong national brand and
consumer prefer some of them .
( 2 ) They cannot produce every product available in the
market under private label as it is not feasible to
provide t attractive costs.
10 to 12 % (Total private label sale in India )
75%(Reliance , Pantaloons , Trent)
20% (Shopper’s Stop , Spencer )

7. ( 3 ) They need to distinguish themselves from
Generics –unbranded , plainly packaged ,less
expensive version of common products .
( 4) Due coming up of duplicate products ,
stream of brand extension has blurred and has
lead to confusing amount of product proliferation

8. Example of Generics

9. "These slides were created by
Shubham Verma( IIT Guwahati ) as
part of an internship done under
the guidance of Prof. Sameer
Mathur
(www.IIMInternship.com)"