International Journal of Engineering and Management Research (IJEMR)
Year : 2017, Volume : 7, Issue : 1
First page : ( 116) Last page : ( 120)
Print ISSN : 2394-6962. Online ISSN : 2250-0758.

Study of Consumer Buying Motives for Private Labels in India

Dr. Chopra Komal, Dasgupta Shouvik, M Gupta inervi

Symbiosis Institute of Management Studies, Pune, India

Online published on 31 October, 2017.

Abstract

Purpose of study

There is a wave of change in the way India's big retailers like Aditya Birla Group, Reliance, Future Group etc. are competing with one another. Big retailers are stocking shelves with their own labels which are private labels. Private labels products are those which may be made by a third-party manufacturer but sold under the retailer's brand name. Better margins and economies of scale are the driving factors especially for Brick & Mortar retailers to have their own private labels. Researchers have found that major retail companies like Trent and Landmark derive 90% of their sales from private labels. Private labels contribute 15–25% to the sales of Shoppers Stop & Lifestyle. The percentage is similar for e-tailers like Snapdeal, Flipkart etc. which derive at least 20% + of their sales from in-house private labels.

Private labels have an ability to satisfy value conscious consumers. Today, the consumers are very demanding and are looking for more variety at lower prices. Private labels aren't the sub-standard alternatives that they used to be a few years ago. They are doing exceedingly well across various product categories as they provide good quality and competitive pricing when compared with national brands. There is a lot of potential for private labels to become more broad-based in the coming years. Mostly, private labels brands are highly demanded in food and apparel product categories but the reach of private label brands to other categories like pharmaceutical, household electronics and baby products is likely to increase. The growth of private label industry in India and consumer preference for private labels has justified the need for doing research in this area.

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