Private Labels

Private labels - Dream of large retailers

Ever went to a supermarket and took the blue color toilet cleaner from Reckitt Benckiser and put that in the trolley just to realize later that is some unknown brand? Congratulations, you have been fooled by #privatelabeling where a retailer sells a product manufactured by a third party and was given a packaging that mimics popular #brands to increase sales.

Mimicking better known brands

The Indian retail market was estimated at Rs 46,15,000 crore (US$ 710 billion) in 2017 and is expected to grow at a CAGR of 9 percent to reach Rs 1,08,58,000 crore (US$ 1,672 billion) by 2027. Data accessibility, Cost competitiveness, retailer empowerment & existing market reach of supermarkets have been the key drivers in the increased presence of private labels in India.

The concept of private labels was started in India back in 2005, Shopper’s Stop launched its in-store label called ‘STOP’. Data by CRISIL Research suggests that private brands already account for 10-15 percent of #ecommerce sales and around 20 percent of organized offline #retail sales in India.

The success story of Amazon India

Ecommerce players Amazon India had a wide range of private label brands such as Amazon basics, Solimo, Myx whereas Flipkart stepped in with Flipkart Smartbuy.


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