PRIVATE LABEL
Presented by: Vikas Jain
private LabeL means
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.
Types of Private Label
Store brands - The retailer's name is very evident on the packaging. Store sub-brands - Products where the retailer's name is low-key on the packaging. Individual brands - A name used in one category, this is only used to promote a "real" discount product line. Exclusive brands - Again a name used in one category, but to promote "added value" products within the category
Growth in India
In India there is a growing trend towards acceptance of private label brands and thus their penetration is on the rise especially in the apparel, consumer durables, home care and FMCG segments. For instance, Future Group has already tasted the success with its Tasty Treat brand which is just behind Frito Lay in the potato chips segment. Its Care Mate in the baby diaper segment has left behind Huggies in the in-store sales.
Overview
Worldwide Private Label retail sales have passed US$ 1.1 trillion 2007 US apparel & shoes retail sales: $358.6 Billion 2010: 45% apparel sales were private label 2009: 39% apparel sales were private label 2008: 35% apparel sales were private label By 2015, private label merchandise expects to increase by 45% to 65% of total apparel sales
Why private LabeL
Rapidly increasing Middle-class Changing Lifestyle Consumer Choices
Market Expansion
Private Label Pros
Lower Prices
Better Margins Offer consumer greater value Bargaining power to the retailer
How do retailers achieve low PL prices?
Source direct with factories to eliminate middlemen cost Buy in larger volume to receive lower cost
Source from low cost, duty and/or quota free countries: China, Bangladesh, Vietnam, Pakistan, South & Central America, Africa
Private Labels Sold in Shoppers Stop outlet
Kashish - Mens's Ethnic Wear Stop - Western Wear - Men & Women Life - Mens Casual Wear , Jeans Wear Mario Zegnoti - Men's Formal Wear Acropolis - Men's Formal Wear Push and Shove - Eye Wear Vettorio Fratini - Premium Men's Wear
Hyper City PRIVATE LABEL
Currently, HyperCity, positioned as a premium and high-end player among all modern retailers, sells private brands such as Fresh Basket (bakery), Everyday (range of cereals and pulses), Terzo (homecare), Ebano (home essentials), Avorio (lifestyle), Maxit (sports equipment), RiverInc (apparels) andJooJoobs (infant wear)
BIG BAZAAR PRIVATE LABELS
Talking of the private labels success story the most prominent in-store brands would be Future Group-owned Food Bazaars Tasty Treats a quick snacks label, and Fresh n Pure for dairy products. The store also operates in-store brand Premium Harvest in staples such as pulses, atta etc.
Reliance Fresh private labels
Reliance Fresh stocks a high proportion of private labels under the name Reliance Select offering food and staples such as atta, sugar, tea etc. Reliance grocery outlets also offer liquid milk through its own brand Dairy Pure .
Aditya birLa Groups more private labels
At Aditya Birla Groups More one would come across multiple private labels; staples such as pulses are sold under their store brand name More, and sauces, noodles, cookies etc are sold under in-store brand Feasters; private label Kitchens Promise covers spices and pickles
CONCLUSION
If a retailer takes care of the 3Ps Presentation, Preservation and Protection he can out-perform manufacturers brands.