Customer Perception of Private Labels Brands vs National Brands in Indian Retail Industry

3254 WordsMar 1, 201214 Pages
CUSTOMER PERCEPTION OF PRIVATE LABELS BRANDS VS NATIONAL BRANDS IN INDIAN RETAIL INDUSTRY 1. INTRODUCTION 1.1 INTRODUCTION TO INDIAN RETAIL INDUSTRY: The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from Rs. 35,000…show more content…
Private brands help retailers to increase sales which indirectly add to the bottom line (profit). However store brands are priced 20-30% less than the branded goods. Store brands can used as a powerful tool i.e. The general feeling is that in times of recession, private labels increase their market share, but tend to maintain that market share as economies recover. Thus store brands prove to be a useful tool, depending upon how it is created. Tasty treat is private brand of future group. 1.2.2 EVOLUTION OF PRIVATE LABEL (STORE) BRANDS: The definition of private label branding has evolved significantly over time. Some would argue the term “private label” is a misnomer of great proportions. There is no question that the words “private label” acknowledges the birth, history and existence of generic and store brands. Yet, the term does not adequately capture the extent to which private label has progressed. Today 's retail marketers are managing their proprietary brands with the same combination of care and innovation as manufacturers of national brands. In recent years, retailers have been liberating themselves from the traditional definition of private label marketing as being the poor relative of national brand consumer goods, and, in doing so, opening up huge opportunities for private label branding. These opportunities require the adoption of a different set of marketing and branding

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