Boston, MA -- (SBWIRE) -- 05/18/2012 -- The market for private label products in India is still in its nascent stages and accounted for just XX% of the overall retail market in 2011. The Indian retail market is highly fragmented and primarily consists of unorganized outlets such as 'kirana' stores. It is expected that organized retail is going to undergo a period of growth over the forecast period. Retailers entered the Indian private labels market by providing staples such as food and beverage products. The positive growth potential of these categories convinced many retailers to enter the personal care market in 2009. The main growth strategy of Indian retailers is to provide consumers with national brands as a trust exercise; as such brands provide a level of quality and assurance to consumers, who are then offered private labels as a discounted alternative. The Future Group recruited national sports icon, Sachin Tendulkar, to create a sub-brand named 'Sach'. In this way, the Group expects to attain national recognition with some consumers and an emotional connection with others. This is the first instance of private label product endorsement in the Indian market. Growth in private labels has resulted in several conflicts between retailers and national brands, owing to issues such as margins, displays and shelf space. Retailers are more inclined to push the sales of private label products as they offer greater profit margins.
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- The market for private label products in India is still in its early stages and comprised XX% of the overall retail market in 2011.
- Private label penetration began in the mid-2000s when retailers established organized retail format stores across the country.
- Organized retail occupies a small percentage of the overall retail market in India. Traditional forms of retail, such as neighborhood 'kirana' stores, dominate the market.
- The most widely used private label products were cereals, pulses and spices. This was followed by packaged food products and fruits and vegetables.
- In 2011, Spencer's Retail revamped its business strategy to focus on the young, urban population. In these terms they are repositioning themselves as an affordable, luxury retailer.
- The Future Group launched its new private label brand, 'Sach', in 2009 with the Sach branded toothbrush, which was followed by Sach branded toothpaste in March 2010. The group tied up with the national sports icon, Sachin Tendulkar, to co-create this sub-brand.
This report provides a comprehensive analysis of the private label market within the consumer packaged goods industry in India:
- It provides an overview of key global markets for private label
- It provides comparison of private label market share in India with Asian countries and with the key global markets
Companies Mentioned in this Report: Future Group, Spencer's Retail, Aditya Birla Retail, Reliance Retail, Nilgiri's Retail, Vishal Mega-Mart, Heritage Foods, Bharti Wal-Mart
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