Private Labels Case Study

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Private labels are great assets for retail firms, as they help attract customers, build loyalty and generate large sales margins. Though private labels have evolved worldwide from being cheap substitutes for manufacturers’ brands to strong contenders for them over the years, their role in the Indian market at present is limited. Many Indian retail firms have launched their private labels, but several of them have not been very successful.
Private labels like Food Bazaar’s Fresh-n-Pure, Reliance fresh’s Select and TATA-Trent’s Westside are very popular among Indian consumers. Indian consumers have begun to acknowledge the modern form of retailing as a better option for purchasing their requirements due to the shopping convenience that it provides
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These research works include study by (Deepali Gala, Ramchandra, D. Patil, May 2013) on consumer attitude towards private label and national brand and their behavior towards various retail outlets and Kirana stores available in the Sangli district, Maharashtra India. Deepali Gala, Ramchandra, D. Patil, May 2013 revealed that the customers see private label as a local product which is not been considered same as the national brand. The majority of respondents prefer both national and private label as compared to individual specific brand, but has changed along with change in demographic profile. Product wise preferences shows that, majority customers prefer national brands for purchasing Electronic, Luxury, Sanitary and Clothing items whereas they prefer private label for Food and other miscellaneous items. Private labels purchase is influenced by positive world of mouth. On other hand, poor quality is a major reason for people do not prefer to buy private label products. The major reasons of purchasing private labels are quality followed by price and then availability in the retail outlet. J. Joshua Selvakumar and P. Varadharajan, March 2013 studied similar study in Coimbatore, India and revealed that preference pattern changes with respect to demographic profile of respondents for Private Label brand and national brand. They examined three categories of private labels, namely food and non food FMCG, apparel and consumer durables and found that freshness is the most important factor that contributes the sales growth of private labels. Respondents prefer excellent packaging towards brand and value for money towards Private Labels. It is inferred that quality and price of national brand products are high when compare to private label products, Packaging of national brand products are attractive when compare to the private label products, Risk of buying national brand products are less

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