An Introduction To Indian Retail Industry Essay

Indian Retail Sector Pune Retail Scenario Forever New Introduction Forever New in India STP Marketing Mix Forever New Pune Brand Portfolio Competitive Analysis SWOT Analysis Data Analysis and Interpretation Recommendations and Conclusion Growth Opportunities References and Bibliography

The industry within which Hansson Private Label exists is a very competitive and volatile one. It is dominated by two types of firms, namely, Branded and Private Labels. Tucker Hansson operates as a private label firm. Private Label firms are an emerging market which is competitive based on its ability to have a lower price than its rivals. This market has experienced growth primarily because of this affordability. However this growth would be regarded as organic.

Private labels also bring benefits to local food manufacturers which are the usual suppliers. Lidl offers small local manufacturers the chance to sell their private label products abroad as well as in the country. Overall, however, these advantages remain underestimated by food producers. Most are still trying to maintain own brands but admit that the price difference for the same product under the own brand and under the private label is almost double, and the cost of keeping own brands grows so significantly that it becomes unaffordable for smaller companies.

The Big 3 had high advertising to sales ratios of 10-14%, also deterring entry, because average first year advertising cost for a new brand was over $20 million. We can conclude that total costs related to producing private label products are lower than new branded products. Private label products can offer greater margins to grocers and still sell at lower prices. They have a considerable competitive cost advantage over the new branded products.

In an effort to respond to growing customer needs and enhance their own profitability levels, Wal-Mart decided to develop and sell their own private label products. The strategy behind this change decision was complex and involved a series of factors, such as the rationale for the change, the resources engaged, the strategic steps or the costs and outcomes of the project. These are all assessed throughout the following paper.

Private labels are products marketed by retailers and other members of the distribution chain. Private labels are often referred to as store brands when they actually adopt the names of the store itself in some way and should not be confused with generics. These type of brands typically cost less to make and sell in comparison to national or manufacturer brands. “Thus, the appeal to consumers of buying private labels and store brands often is the cost savings involved; the appeal to retailers of selling private labels and store brands is that their gross margin is often 25 percent to 30 percent – nearly twice that if national brands”. (Keller, 2013, pg.182) This provides a distinct competitive advantage for private labels.

Industry: American Retailing Industry, for example, Target Corporation is an American retailing industry company, founded in 1902 and headquartered in Minneapolis, Minnesota. It is the second-largest discount retailer in the United States, behind Walmart.

An Indian retail industry is one of the fast emerging sector across the world. Retail industry in India is anticipated to grow up to US$ 950 billion by 2018, with the compound annual growth rate (CAGR) of 8.9 per cent from year 2000 to 2018. (IBEF, 2015) The online retail market is anticipated to grow from US$ 3.1 billion to US$ 22 billion (from approximately 10 per cent to more than 15 per cent of the organized retail market) during FY2013 to FY2018.(IBEF, 2015). There has been a considerable growth in Private Label brands in last few years worldwide. Private Label Brands (PLBs) are growing faster than National or Manufacturer’s brands. They are becoming more popular nowadays. Private Labels have gained an increased market share and are growing at a rapid rate. Private labels brands are completely owned products by the retailer they are manufactured, operated and sold by the retailers (generally known as self-label brands, store brands of dealers or retailer’s brands. (Kumar and Steenkamp, 2007).

After consolidating its market leadership with its own brands, it introduced premier international labels, enabling Indian consumers to buy the most prestigious global fashionwear and accessories within the country.

In recent years, due to the change of own profit model, high inflation, increasing operating costs and competition from online commerce, traditional retail businesses have grown slowly in China. Chinese retail business, especially supermarkets need to be transformed and updated. Developing private label brands is one of the most efficient ways to realise supermarkets ' transition and updating, it could reduce costs and improve supply chain system. However, the development of supermarket private label in China is only in start-up stage now which leaves plenty of scope to learn from mistakes and successes from other businesses. The British retail market is the second largest in Europe, and has the highest profit margins in the world. Its supermarket private label has developed into a mature stage (Zhen, 2007). Since there are limited studies in the area of analysing the gap between British and Chinese supermarket in developing private label, this study will help to stop the gap in literature study of comparing the development of private label between China and UK. In addition, it may predict the future developing trend of Chinese private label and benefit Chinese supermarket managers on how to introduce more successful strategies of private label products in further development on the basis of British experience.

Customer demand, no competition, large margins. Every seller strives for those things, but with the positive comes the work, and the work includes getting to know what you should do and most importantly, what you should not do. While building your own private label brand has appeal for lots of reasons, DIY product label-building may not be the best course of action; the private label product business can be steeped with risk. An effective system to use while building a private label product business should include: product evaluation, proper legal vetting, identification to the right manufacturer partners overseas, small minimum order quantities (MOQ) on a wide range of products and all the hard work necessary to get your products launched on Amazon.

Private label brands are those offered by retailers. There are various advantages for the retailers to go for private label brands. The advantages include

Within the social sciences of production and consumption the concepts of macroeconomics and microeconomics help to analyse the broadness of our vast economic system. This research essay will critically review an article published in The Australian “Retail spending rose 0.3pc in January, less than expected”. The author of the article, Dow Jones compares the forecasted growth of retail and hospitality industries. Aspects of consumer sovereignty and market demand explain trends in the post-holiday period of January which Jones raises concern to be enforcing the downward trend of Australia’s economic system.

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This case study talks about the evolution of Emami as a brand in the rural market. Rural market is a market which is still not tapped by many well known brands but Emami took it as an opportunity and are successful in taking full advantage of it. Their major revenue is generated from rural market i.e. 40-45 % of revenue. In this case study we have talked about various brand portfolios and also about their rural strategies.