Private Brand Expected to Grow In India

An interesting, if now predictable report on Private Brand, this time from India. Private Brands in the food & beverage segment in India are expected to grow at compounded annual growth rate of 3% for next five years due to improved quality of products at low price point. As per the study, the margins from private labels range between 10%-15% in case of FMCG products and as high as 40%-60% in case of apparel sales. 85% of surveyed consumers have shown their willingness to repurchase the private label promoted by the respective retailer. The consumption of private label has helped Indian consumers bring down their monthly consumption bill by 8%-10% depending upon the product category” said Tanvi Sharma, Retail Analyst at TechSci Research.
Products of private label brands are manufactured for sale under a specific retailer. These are designed to compete against the other national brands in the market. Although a lot of factors can be pointed to be responsible for the general increase in shopper demand for private label products across the grocery industry, economy, quality and marketing are the three most important ones. In general, the consumer is not brand conscious while making a purchase of a grocery product which has given opportunity to retailers to fill in the gap. Instead, the availability of product, product placement, pricing and similar in-store marketing initiatives are more responsible for the final purchase decision in case of groceries. Packaged rice, packaged aata and pulses are the most preferred products in the private labels in food & beverages segment.
According to the recently published report by TechSci Research ‘India Food & Beverages Private Label Market Forecast & Opportunities, 2017’, the market for private labels in food & beverages will expand enormously in the coming years. The private label market is expanding as the low prices of these brands are increasingly attracting larger customer base. Almost all the retailers in India have a private label product within each segment in the retail store. The market is further forecasted to expand as the retailers increase their focus on the quality of the product. Bakery products are also expected to perform well in the coming years, as the retailers are increasing the level of involvement in such products. The upcoming initiatives of freshly grounded aata and in-store kneading processes for dough can help the retailers in retaining the customer.
‘India Food & Beverages Private Label Market Forecast & Opportunities, 2017’, gives a detailed and unbiased overview on private labels in food & beverage market in India. This report will help the readers identify the ongoing trends and estimated growth for the coming years, as a consequence of changing industry dynamics. The report will help industry consultants, retailers, distributors, vendors, investors and other stakeholders to align their market centric strategies according to ongoing and expected future trends.

Previous articleAeon Launches Top Valu Private Brand In China
Next articleTesco Extends Chokablok To Candy
Christopher Durham
Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.