With the growth of Retail Industry in India Private Labels are also getting more popularity. First we will see what private label is. Private label means products that are launched under retailers own brand name. For Eg: Earlier we were aware of brands like TATA, Annapurna Salt etc but now if we visit a Big Bazaar or Reliance outlet we can see their own brands like Food Bazaar or Reliance Namak. Long back this practice was done by only local kirana shops but now all prominent players of organized retail sector have started to come up with their own brands. Now private labeled products are available starting from grocery to textiles and from mobile phone to all kinds of consumer durables and garments.
Consumers also now trust the private labels as they can get quality product at a cheaper price. Today many of the national brands are facing a threat from private labels and as a result most of the manufacturers have begun to compromise on the price of their products.
Consumers want brands for the quality assurance and the emotional satisfaction they provide. As the retailers became more everywhere and successful providing the necessary mass of investment in banding activities retailers now able to position their private labels as brands in their own right. Their store brands are increasingly imbued with emotion and descriptions.
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