Private Labels -how far will they go ?
Private labels or store brands is nothing but term given to the retailer brands that compete with other well know brands in its category , retailers use the higher margin possibility to sell more of these brands in their mix .The private label brands have over years grown from strength to strength and also eating int o shares of more prominent brands giving them nightmares in some categories already ! Walmart is estimated to have around 40 % of its sales from private labels and Tesco a whopping 50 % from private labels .A number of Indian retailers have private labels mix between 25 % to 30 % already . But selling private labels has its own plus and minuses as if not done properly then the power of the reputed brands would be missed and the consumers might just shun your store if they don't find what they were looking for ie the famous brands . Plus quality is always a suspect with these brands ,but that normally gets offsetted by the lower prices of these brands . Private labels...