Private labels and national brands: the case of India

The consumer perception towards private labels is changing and private labels are gaining acceptance especially in segments like food and apparel which are growing at a faster rate. Private labels have emerged as a key weapon for retailers and have started to play a vital role in the battle for control of the distribution channel and customer loyalty. Retailers are increasingly strengthening their private label portfolios to enhance margins and provide greater differentiation to the customers on the selling floor. This conceptual paper looks at the factors driving the growth of private labels in India. The paper also analyses the prospects of private labels in India.