Home > Back to Publisher > Report Information

The Impact of Private Labels on FMCG Companies in India

Datamonitor
November 16, 2009
SKU: DFMN2508172

Abstract Table of Contents Search inside this report Related Reports

Countries covered: India

Introduction

This report is based on a consumer survey of more than 550 respondents with survey focused on preference for private labels in various product categories. It highlights the private labels strategies of Indian retailers and brings out its implication on FMCG companies. It also provides information on the steps FMCG companies can adopt to differentiate their product offerings from private labels.

Scope

Changing consumer attitudes and shopping behavior in India with the launch of private label FMCG brands
Insightful analysis into consumer's attitudes, beliefs and motivations behind private label versus famous brand purchases
Focus areas for FMCG companies in terms of product development and positioning to avoid competition from private labels
Geographic scope is India

Highlights

This report aims at exploring the current market trends with respect to private label adoption, in addition to highlighting the implications and threats for FMCG companies. It also provides information on consumer insights, and reveals how FMCG companies can leverage the consumer level trends to drive sales.

Reasons to Purchase

Information of private labels strategies of retailers in India and highlights the implication on FMCG companies
Consumer insights to help FMCG companies in framing their product and marketing strategies
Suggests actions which FMCG companies can follow to avoid competition from private labels

Overview
Catalyst
Summary: Table of Contents; Table OF FIGURES; Table OF TABLES
THE FUTURE DECODED: INTRODUCTION: After household care, private labels pose most threat in the food and beverages category; TREND: Private label evolution in India is emulating Western markets; Import of locally unavailable products and repackaging with retailer's logo; Private labels available as a value alternative; Different variants of private labels made available under the value and premium range; Private labels launched to address specific consumer segments; Private labels launched with higher order value proposition; Key takeouts and implications: The next stage of evolution for Indian retailers will be to focus on products targeted at specific consumer segments; TREND: Retailers are expanding their private label portfolio and targeting multiple consumer segments through tiered pricing and claims; Having established a significant presence in the household care segment, Indian retailers are now launching private labels in ready-to-eat foods, beverages and personal care segments; After beginning as an 'economical alternative', some private label offerings are now tiered across different price points; Retailers are building private label brands with product attributes that mirror national brands; Retailers are investing in individual brands comparable in quality and price with the national brands; Key takeouts and implications; INSIGHT: Indians are attaching significant importance to natural/organic ingredients in personal care products but not in the food and beverages category yet; Key takeouts and implications: FMCG companies looking to differentiate their offerings from competitors can focus on organic products; INSIGHT: Customer service, convenient store opening hours and in-store ambience are key influencers for purchase decisions; Key takeouts and implications: Indians are increasingly preferring modern retail formats for shopping which has made the role of retailers more significant; INSIGHT: Private label adoption among Indian consumers is not only based on price but also perceived quality; Key takeouts and implications: Success of private labels in the household category increases their propensity to trial in the food and beverages and personal care categories; ACTION: Differentiate product offerings with unique packaging and product design to avoid competition from private labels; Results-led innovation has been vital in continually engaging consumers and preventing basic commodity status of products; National brands need to invest in innovative packaging to clearly differentiate themselves from private labels; ACTION: Focus on new customer segments for generating higher growth; FMCG companies should consider launching several variants of their products to cater to localized needs or different consumer segments; FMCG companies should increase focus on product development and logistics to target the high growth rural market; Launch of low cost products for rural India can help FMCG companies boost earnings; ACTION: Determine whether you want to manufacture private label brands or not
APPENDIX: Definitions; Methodology; Further reading and references
List of Tables: Table 1: Private labels launched across categories by Reliance, More, Spencer's, and Big Bazaar; Table 2: Illustrative price comparison between More's private labels and leading national brands; Table 3: Sach tetra milk launched with product claims similar to leading national brand Nestle; Table 4: Indian consumers attach significant importance to natural/organic ingredients when purchasing personal care products; Table 5: Indian consumers consider private labels as good as national brands in quality in the food and household care categories

More India General Retailing Reports

Retail Sector in India: Strategic Review (Budget 2012-13) by IS Advisors
Retail Sector in India is the second largest employer after agriculture. Although the sector is highly fragmented, Retail trade in the country has burgeoned in ...

Retail Market in India 2012 by Netscribes (India) Pvt. Ltd.
Retail market in India was valued at INR 16.94 tr in 2010 and is expected to grow at a CAGR of 11%. It accounts for ...

A Guide to India's New FDI Rules and What They Mean for Foreign Retailers by Euromonitor International
This report examines one of the most anticipated events in retailing: the relaxation of FDI restrictions in India’s retail market. It analyses in detail the ...

Business Strategy: India Retail Industry and IT Trends by IDC
This IDC Retail trends study features a broad overview of retail trends in the Indian retail market. All spending and industry performance data are aggregated ...

General Retailers in India: Market Databook to 2015 by iCD Research
This report is the result of ICD Research’s extensive market research covering the General Retailers in India. It provides detailed historic and forecast sales value, ...

See all reports like this >>

More India Reports

D&B Country RiskLine Report: India by Dun & Bradstreet Inc.
This D&B Country RiskLine Report will help you analyze the risks, opportunities and likely payment delays when doing business in this country. It includes ...

D&B Country Report: India by Dun & Bradstreet Inc.
D&B Country Report. Comprehensive information for evaluating risks and opportunities when trading or investing in this country. Providing critical information and analysis on ...

Country Report India January 2011 by Economist Intelligence Unit
Country Reports analyse political and economic trends in featured countries. They show you exactly how national, regional and global events will affect your business in ...

India: Country Profile by MarketLine
INTRODUCTION This report provides a detailed analysis on India, providing an overview of its political, economic and business environment, represented both textually and in graph and ...

2007 India Industry & Market Outlook report by Barnes Reports
The 2007 India Industry & Market Outlook report is the leading annual publication that describes over 100 major industries in India and 500+ minor industries ...

See all reports like this >>

Share this report

Email a colleague

Other tasks

Research Assistance

Ask a question

Related Markets

Consumer Goods & Retailing
Consumer Goods & Retailing Company Reports
Food
Brands
Private Label
Product Consumption
Consumer Goods
Retailing
General Retailing

General Retailing Reports

Free Alert Me service

Receive bi-weekly email alerts on new market research

Sign Up Today!