Private Labels in India

If one walks into any of the newly sprung retail chains we can see various products which are being sold under their own name or a name owned by the retailer himself. In Big Bazaar one can see various ready to eat snacks under the brand name 'Tasty Treat" , salt and other commodities being packed under the Big Bazaar name itself, and then if you were to go into their consumer durables section you can see "Koryo"range of AC and other appliances.

This phenomenon of retailers using their own brands are more prominent today in the garment retail chains. In westside you would find them selling most of the brands which are owned by westside.

Though in terms of its share of market it is minuscule, but in the coming days going by the trend in other countries private labels, are going to become a force to reckon with. Infact Nirmalya Kumar of LBS, an authority on this area predicts that in the next twenty years private labels would easily account for over 50 percent of retail sales in the country....

The retailer has many advantages from the use of private labels , he would most of the times make more profits by selling private labels than the brands of organized players, and also use it to reduce the bargaining power of the suppliers. In the long run he can actually use the private labels to attract customers to his outlet.....

The consumer also gains as he gets products which are as good as the manufactured ones albeit at a lower cost, only party worried with this development would be the manufacturers ...