According to the article below appearing in the Indian publication The Economic Times Walmart is introducing its Private Brand products in an Indian retailer that is not owned by the Bentonville giant. This move introduces their brands to a large and growing market with minimal risk and could signal the evolution of Great Value as something more than either Private Brand or national brand. Bharti Retail & Walmart have worked to together the last few years on this concept and you can definitely see the influence of Walmart in the photo above with both color and the hint of the Walmart burst logo.
What would you call it?
Bharti Retail has introduced eight Wal-Mart private labels, including two of its largest—‘Great Value’ and ‘George’—in its supermarket chain Easyday, hoping to attract more consumers with their international design and packaging and more importantly the value they represent. This is the first time that a Wal-Mart private label has been launched in stores not owned by the retailer that grosses $400 billion annually through 7,800 stores in 16 countries.
“Introducing Wal-Mart private labels in our stores helps cut down on the learning curve,” Bharti Retail president and COO Vinod Sawhny said. Bharti, which opened its first supermarket last year and has scaled up to 25 now, depends primarily on its equal joint venture with Wal-Mart for its supplies. Bharti is also a franchisee of Wal-Mart, but Mr Sawhny declined to comment on whether Bharti would pay a separate fee for the use of these private labels.
Wal-Mart has introduced these private labels in its cash-and-carry wholesale store it recently launched in partnership with Bharti. This would mean these private labels can find way to other retail stores as well.
Private labels, or store brands, are those owned and sold by retailers in their stores typically at a lower price because of minimal marketing and advertising expenses. This also helps retailers keep a check on prices of the national brands or those owned by other manufacturers or suppliers, because of cheaper competition.
Bharti Retail gets 15-20% of sales from private labels and hopes to raise it to 30% in future. Introduction of more private labels may help Bharti follow its partner Wal-Mart’s everyday low price philosophy. On average, Bharti stores offer 10-20% lower prices on private labels, as against national brands.
Almost all modern retailers, including the Future group, Reliance Retail and the Aditya Birla group, are increasingly relying on private label to boost their sales and margins. Future group has been working towards growing their private labels so that some of them can even be leased or sold to other retailers.
“The era of private label in India has just begun and Wal-Mart’s move to introduce private labels in India could take it much ahead of its rivals and make its brands a household name,” says Harminder Sahni, MD of retail consultant Wazir
“Wal-Mart private labels give our consumers immediate access to the international design and packaging, even as it helps Wal-Mart widen the supply base in India for these labels,” Mr Sawhny said.
Easyday stores have so far introduced eight Wal-Mart brands across categories. It has introduced Great Value line of food (flour, dry fruits, spices, cereal and tea). Great Value, a 16-year-old private label that was redesigned mid-summer in the US amid a recession to attract more consumers wanting to pay less, is Wal-Mart’s top-selling retail brand. Analysts estimate that Wal-Mart’s private-label products account for about 16% of its overall food sales, which they say lags behind other retailers.
Another private clothing line, George, too is now in Easyday stores. George began as British supermarket ASDA’s own-brand clothing range, but later moved to Wal-Mart’s US and Canadian stores.
Equate, a brand for pharmacy and health and beauty items, has been introduced only in the handwash category as of now in Easyday stores. Other Wal-Mart private labels introduced in India include Home Trends (home furnishing), Mainstays (plastic containers, kitchen accessories), Kid Connection (toys, clothing), Faded Glory (footwear) and Athletic Works (athletic shoes, equipment).
Bharti Wal-Mart, the JV company, has also readied more private labels for local consumption, including Astitva, a line for Indian ethnicwear.