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National vs Private Labels
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Historic / Rural
Reach
Traditional /Pervasive
Reach
Government Supported Modern Formats /
International
Exclusive Brand Outlets
Hyper / Super MarketsDepartment Stores
Shopping Malls
PDS Outlets
Khadi Stores
Cooperatives
Convenience Stores /
Mom and Pop / Kiranas
Weekly MarketsVillage Fairs
Melas
Source of Entertainment Neighborhood Stores /
Convenience
Availability / Low Costs
Distribution
Shopping Experience/
Efficiency
Source : Ernst & Young, The Great India Retail Story, 2006
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There are 12 million retail outlets in India.
Highest number of outlets per capita in the world.
India is ranked the 5th largest retail destination across the globe.
Total Private Consumption Expenditure in India 375 Billion USD.
Retail Sale 205 Billion USD (55%).
Organized Retail 6.2 Billion USD (3%).
Retailing contributes 35% ofIndias GDP.
Over 12 Million Outlet Estimates
Second Largest Employer after Agriculture.
Source: Ernst & Young, The Great India Retail Story, 2006
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Case Study Shoppers Stop
Revenues (Rs. Million)
6
49
177
291
492
792
945
1323
1546
2191
2495
3030
4045
5110
6700
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
FY
ending
Source: Annual Report of M/s. Shoppers Stop Ltd, 2005-2006
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20%
80%
Private Label
Branded
Source: Annual Report of M/s. Shoppers Stop Ltd, 2006-2007
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What are private labels ?
Own-label brands or Private label brands are those brands that are created and ownedby businesses that operate in the distribution channel such as distributors, retailers.
Sometimes the retailers entire product range will be own-label such as Westside.
More often, the retailer will mix own-label and manufacturers brands such as ShoppersStop or Big Bazaar.
Private label products encompass all merchandise sold under a retailers brand.
German wholesaler Metro has two distinct brands ARO for smaller retailers like kiranasand mom-and-pop shops, while HoReCa is targeted at restaurants. But Metro is unleashingmore private labels across food and non-food categories. This will include Metro tappingthe dairy business as well, including the liquid milk segment, under a private brand.
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Private Labels offered by Shoppers Stop
Stop, Life, Haute Curry, Kashish, EllizaDonatein, Austin Reed, Vettorio Fratini, I
jeans, Mario Zegnoti, Acropolis, Push &
Shove, Lolita, Kenzo, Incense.
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4 Ps of Private Labels ..
The four Ps that play crucial role in launching of private label are :
Product: Which product is launched? Who are its competitors? Who are
the target customers for the product?
Price: What should be the products ideal price so it can sustain in themarket.
Place: At which place product should be launched so that it can able to
achieve its sale targets.
Promotion: How is the products promotions and advertising being doneand which methods of advertising is used.
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Mens Formals In house vs National
Brands at Shoppers Stop
Mens
Formal
In House NationalBrand
In House NationalBrand
In House NationalBrand
Brand Austin Reed Louis
Philippe
Vettorio
Fratini
Van Heusen Mario
Zegnoti
Zod
Price 1899 1799 1299 1299 1199 1255
Quality Excellent Excellent Good Moderate Good Good
Range High end
corporate
wear
High end
corporate
wear
Office Wear Office Wear Party
Wear
Party
Wear
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Mens Casuals In House vs National
Brands at Shoppers Stop
Mens
Casual
In house
Brand
Internationa
l Brand
In house
Brand
Internationa
l Brand
In House
Brand
National
Brand
Brand Push &Shove
GAS I Jeans Lee Life Weekender
Price 2599 3000 999 1199 799 899
Quality Excellent Excellent Value forMoney Value forMoney Good Good
Range High end
casual wear
High end
casual wear
Basic Basic Fashion Fashion
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Ladies In House National
Brand
In House National
Brand
In house National
Brand
Brand Kashish Biba Stop W Elliza
Donatein
Expozay
Price 1399 1599 1099 999 1299 1199
Quality Excellent Excellent Value for
Money
Good Good Good
Range High End
Indian Wear
High End
Indian Wear
Basic Daily Wear Daily
Wear
Daily
Wear
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Kids Range In house vs National
BrandsShoppers Stop
Kids In House International
Brand
In House National
Brand
In House National
Brand
Brand Stop
Everywhere
Ginny &
Jony
Kashish Ruff Life Junior Lilliput
Price 499 599 399 399 199 259
Quality Excellent Excellent Good Good Value for
Money
Value for
Money
Range Occasional
Wear
Occasional
Wear
Daily Wear Daily Wear Basic Basic
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Non Apparels In House vs National
Brands
Non
Apparels
In House International
Brand
In House International
Brand
In house International
Brand
Brand Push &
Shove
Pure Poison Kenzo Azzaro Visit Lolita C K
Summer
Price 50
ml
4500 5000 2500 2700 2000 1800
Quality Excellent Excellent Good Good Value for
Money
Value for
Money
Range Occasional
Wear
Occasional
Wear
Daily Wear Daily Wear Basic Basic
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Research Study : ConsumerPerception of Private Labels at
Shoppers Stop
Objectives of Study :
What is the customers response to the private label productsof Shoppers Stop
Opportunity of the growth of these private labels product inShoppers Stop.
How do customers perceive National labels
What are the preferred brands of Shoppers Stop customers
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Methodology :
Primary survey through questionnaire : 150customers at Shoppers Stop, Andheri,
Mumbai
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Findings of the Survey :
75% of the respondent s visit Shoppers Stop at least once a month.
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Findings of the Survey :
Age : Sample 150 Customers
18-24 yrs,
30, 20%
25-35 yrs,
75, 50%
36 + yrs,
45, 30% 18-24 yrs
25-35 yrs
36 + yrs
70 % of the cus tomers are in the age group of 18 35 yrs
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Gender Distribution : Sample 150
Customers
32%
68%
Male
Female
68 % of th e respo ndents w ere females
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Brand Recall - Ladies Ethnic - Sample 150 Customers
STOP
30%
BIBA
25%
HAUTE CURRY
4%
W
15%
KASHISH
3%
SDS
3%
WESTSIDE
3%FABINDIA
17%
STOP
BIBA
HAUTE CURRY
W
KASHISH
SDS
WESTSIDE
FABINDIA
STOP and Kashish are Private Labels of Shoppers Stop
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Brand Recall - Ladies Wester n - Sample 150 Custom er s
20%
7%
17%7%
32%
10%7% STOP
Incense
Eliza D
Allen Solly
Austin Reed
Wills
Life
Austin Reed, Eliza Donatein and STOP are Private Labels of Shoppers Stop
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Brand Recall - Men's Formals - Sample 150 Customers
13%
20%
33%
7%
10%
3%
7%
7%
STOP
Zodiac
Arrow
VH
Vettorio Fratini
Mario Zegnoti
Provogue
Austin Reed
National Brands Arrow and Zodiac score over the Private Labels of Shoopers Stop
Arrow
Zodiac
Van Heusen
Provogue
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Preferred Brand in Denim s - Sam ple Size 150
35%
20%
19%
13%
1%7%5% Levis
Lee
Pepe
Wrangler
I Jeans Wear
Mufti
Life
I Jeans Wear
Only 1 % of resp ondents preferred I Jeans WearThe Private Label of Shoppers Stop in Denims
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Customers who had tried Private Labels of
Shopper's Stop - Sample Size 150
73%
27%
Yes
No
Almost 3/4thof the customers have tried Private Labels of Shoppers Stop
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Do the Private Labels at Shopper's Stop offer Value
for Money ? : Sample Size 150
58%
42% Yes
No
There is a large set of customers ( 58 % ) who feel that the Private Labels at Shoppers Stop offer
Value for Money
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Most appealing factor for any m erchandise - Sample Size 150
30%
13%40%
17%
Style
Price
Quality
Brand
Quality & Style are the most appealing factors for selection of any merchandise, followed by brand
name and price is the last factor in consideration
Quality
Style
Price
Brand
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