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Retail & Consumer Industry - page 52 / 88





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  • Employing specialised staff - Retailers employ specialised and trained staff to develop private labels that offer health benefits to consumers. These trained staff prepare formulations and maintain an active and important role in Research&Development.

  • Ensuring quick time-to-market - Most interviewed retailers indicate that it takes between three to 12 months to launch private label products, given the relative ease in finding manufacturers.

  • Experimenting with products - Some retailers indicate that they are experimenting with private labels and are in the process of identifying underserved categories, finding common features that several customers are demanding for products in stores, etc.

Benefits of private label brands - The retailer’s perspective

  • Retailers can maintain control over development, design, marketing, promotion, positioning, etc.

  • Private labels have higher margins than branded products

  • Private labels help draw footfalls

  • Private label offerings appeal to cost- conscious consumers

  • A private label brand can become synonymous with the retailer, thereby developing brand equity

  • Private labels can, over time, help retailers differentiate their offerings

Benefits of private label brands - The consumer’s perspective

  • Private labels are typically priced lower than branded products

  • Private labels are available across a range of categories, such as food, beauty care, apparel, home furnishings, FMCG, household cleaners, consumer durables, etc.

  • Retailers plan to launch additional private label brands which will ensure that the consumer is not starved of choice!

Strategic Issues for Retail CEOs* : Perspectives on Operating in India’s Retail Sector

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