Factors Impacting Purchase of Private Labels in India

Sardana, Richa; Duseja, Aarti; Misra, Pooja

doi:10.1007/978-3-319-94613-9_8

Cited by 2 publications

(10 citation statements)

References 3 publications

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“…The fast-moving consumer goods (FMCG) sector is one of the most attractive industries in India, dominated by the food and grocery segment, which is expected to account for 66 per cent of the total revenue in the retail sector by the year 2020 (IBEF, 2017). Specifically, in the business of private-label goods, food alone holds 76 per cent of the share in total sales, with a dominating figure of a 53 per cent contribution from packaged food groceries, followed by a 48 per cent contribution from the sale of household cleaners (Sardana et al, 2019). Therefore, in food and non-food grocery retail, PLBs are becoming indispensable for retailers (Ter-Braak et al, 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

“…The price contradiction of national and private brands is because of variation in the perceived quality (Bao et al, 2011; Sprott & Shimp, 2004). However, in the Indian retail market, the concept of the private label is at inception (Gupta, 2015; Sardana et al, 2019). The share of private brands in India is less than 5 per cent and is estimated to reach more than 10 per cent by the end of 2020 (Arce-Urriza & Cebollada, 2017; Pani, 2013; Sebri & Zaccour, 2017).…”

Section: Growth Perspective Of Plbsmentioning

confidence: 99%

“…The growth of PLBs is associated with the transformation of unorganized retailing into organized modern trade format (Kumar et al, 2015; Nielsen, 2005; Sardana et al, 2019). It has, however, been proved insufficient to the success of PLBs in markets dominated by traditional channels (Mandhachitara et al, 2007; Sebri & Zaccour, 2017).…”

Section: Introductionmentioning

confidence: 99%

“…It is followed by organized brick-and-mortar retailing, including hypermarkets, convenience stores, discount stores, departmental stores, etc. (Kumar & Kothari, 2015; Sardana et al, 2019). As per IBEF (India Brand Equity Foundation), by the end of 2020, Indian retail is expected to touch US $1.3 trillion, from the US $672 billion in 2016, at a growth rate of 17.94 per cent compounded annually (IBEF, 2017).…”

Section: Introductionmentioning

confidence: 99%

“…Therefore, it was felt imperative to study the impact of the emergence of PLBs on NBs in the unorganized grocery retail sector. Moreover, a reasonable number of studies using the empirical approach have been conducted for understanding PLBs in the context of consumer preference, consumer perception, shopping experience, purchase intentions and brand loyalty (Gangwani et al, 2020; Kelting et al, 2017; Nair, 2011; Rossi et al, 2015; Sardana et al, 2019; Sarkar et al, 2016), but very few have adopted a qualitative approach to study PLBs (Hoch & Banerji, 1993; Steiner, 2004; Zippel et al, 2013). This study will be the first of its kind to use a qualitative approach to analyse the impact of PLBs on NBs in the unorganized retail space from the channel members’ perspective.…”

Section: Introductionmentioning

confidence: 99%

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Determining the Influence of Private Labels on Sales of National Brands: A Qualitative Approach

Islam

Bhat

Darzi

2020

FIIB Business Review

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Private-label brands (PLBs) are spreading their operations in all product categories and have marked their presence in almost all types of retail formats. They are posing stringent competition to national brands (NBs), be it offline (organized and unorganized) retail or online retail. Besides being favourites of value-conscious Indian consumers, PLBs are becoming a key focus of channel partners as well. In this context, the present research article is aimed at providing insights about how PLBs are able to garner the profit-centric interests of channel partners and how they are affecting the distribution of NBs in the unorganized retail sector. The study is based on information collected through semi-structured interviews with distributors and retailers from Haryana and Punjab. A thematic analysis was performed to draw meaningful inferences from the responses collected through the semi-structured interviews. The results reveal that channel partners’ interest in the high margins of private labels and their interest in maintaining long-term relationships with the latter make NBs vulnerable on parameters such as sales effort investment, in-store visibility, ordering quantity and frequency and numeric distribution. This study provides bases for understanding private label operations in the unorganized retail sector in India.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Growth Perspective Of Plbsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Determining the Influence of Private Labels on Sales of National Brands: A Qualitative Approach

Islam

Bhat

Darzi

2020

FIIB Business Review

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In-store marketing of private labels: applying cue utilisation theory

Malhotra

Saxena

2020

IJRDM

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PurposeThe purpose of this study is to examine the effectiveness of in-store private label marketing to impact the attitude of consumers towards private label brands (PLBs) by influencing consumers' perceived quality variations between the PLBs and national brands.Design/methodology/approachThis study is based on “Cue utilisation theory” and focusses on how retailers can influence consumers' perception of quality variations by providing them in-store marketing cues. Data was collected through the mall intercept method in New Delhi, India. Data analysis was done using AMOS 25 and the PROCESS SPSS macro.FindingsThis study establishes the effect of in-store private label marketing in improving consumers' quality perception of PLBs vis-à-vis national brands and thereby leading to a positive attitude towards PLBs. Further, the national brand promotions attitude is found to moderate the relationship between private label marketing and attitude towards PLBs. However, contrary to the authors' expectations, it has a positive effect on this relationship. The study found an insignificant moderation influence of price consciousness.Originality/valueThis study complements existing literature on “Cue utilisation theory” by demonstrating the importance of in-store private label marketing in improving consumers' attitudes towards PLBs. It also extends to fill some gaps in the literature by studying the direct, mediating and moderating relationship among in-store private label marketing, perceived quality variations, price consciousness, national brand promotion attitude and attitude towards PLBs, especially in an emerging market such as India.

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Factors Impacting Purchase of Private Labels in India

Cited by 2 publications

References 3 publications

Determining the Influence of Private Labels on Sales of National Brands: A Qualitative Approach

Determining the Influence of Private Labels on Sales of National Brands: A Qualitative Approach

In-store marketing of private labels: applying cue utilisation theory

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