Sunday, March 11, 2012

Private Labels to Squeeze out Smaller Brands from Indian Market.

“The private labels in food & beverage segment in India are expected to grow at compounded annual growth rate of 30 percent 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.

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.  

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