What does the future hold for private labels?

What does the future hold for private label brands ?

Monarch LakhanpalNIT Jalandhar

What are private labels?A private label is a brand that retailers and wholesalers developThe largest food chain of Britain Sainsbury and Tesco, sell

store – label goods which account half of their sales .

Big Bazaar and Reliance mart sell privately labelled products in India

Private LevelV/S

Original

Why do intermediaries sponsor their own brand?

(1) Costs of research , advertising , sales promotion , physical

distribution is low. So ,HIGH PROFIT MARGIN

(2) Many consumers prefer store brands in certain categories . These preferences give retailers INCREASED BARGAINING POWER with marketers of national brands

What does the future hold for private label brands ?

Experts believe that 50 % is the volume limit that private labels could carry due to following reasons :

(1) Competition from strong national brand and consumer prefer some of them(2) They cannot produce every product available in the market under private label as it is not feasible to provide at attractive costs

(3) They need to distinguish themselves from GENERICS

unbranded , plainly packaged , less expensive version of common products

(4) Due coming up of duplicate products , stream of brand extension has blurred and has lead to confusing amount of product proliferation.

Example of generics