Private label brands in an emerging economy: an exploratory study in India

Abstract

Purpose – The purpose of this paper is to present different naming, packaging, and pricing strategies adopted by private label (PL) retailers in India. This study also aims to identify preferred private label brand (PLB) categories, factors influencing their selection, and the importance of cues in evaluation of PLBs. The overall purpose is to identify important areas for future research of PLBs in the wake of organized retail growth in an emerging economy (India is the context here). Design/methodology/approach – This study is based on in-store observations of major Indian retail chains, longitudinal analyses of customers’ shopping bills, qualitative analyses of consumer interviews, and focus group discussions. Findings – The results indicate that retailers primarily adopt “Sub-branding” (using the store name along with a separate brand name) and “House of Brands” (using a separate brand name only) strategies to sell PLBs in the Indian market. Groceries, food and beverages, and apparel are the preferred categories in PLB. Price, quality, and convenience are the major factors influencing PLB. Taste, ingredients, packaging, price, brand name, and store name are the main factors that are used to evaluate PLBs. Research limitations/implications – Due to the qualitative analyses and interpretation, there are limitations to this study which need to be empirically validated. Practical implications – This research has implications for organized retailers in understanding the various strategies used for PLBs in India. Originality/value – This study is a novel study for documenting the PLB strategies adopted by organized retailers in India. It also uses a longitudinal exploratory approach to further understanding the consumption of PLBs in India.

Hypermarket Brand Extension Products and Service Experience

“…The acceptance of consumers of hypermarket brand extension products has proven that consumers have used the products, which definitely enhances the brand experience and builds brand trust [19]. This findings is actually common to those countries that is under emerging economy [20]. The highest acceptance of brand extension products is for beverages (73.54%), followed by light food (71.14%), carbohydrate products (66.58%) and frozen food (62.03%).…”

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

“…In-store promotions are usually done for private label products using leaflets, banners, shelf stickers, etc., which incur less costs, whereas NBs are advertised heavily on various media platforms, such as TV, the Internet, newspapers etc., to create brand awareness and value (Kumar & Kothari, 2015). Therefore, PLBs that imitate the packaging of NBs not only save on advertising budgets by taking lookalike advantage but also boost buyers’ purchase preference (Aribarg et al, 2014; Olson, 2012; Sarkar et al, 2016). Furthermore, the cost of media channels levied on NBs for promoting at the mass level is more, and the retailer margin on massively promoted products is low (Ailawadi & Harlam, 2004).…”

“…(Scott Morton & Zettelmeyer, 2004). Therefore, the potential of a PLB to address its promoter’s or manufacturer’s interest has a significant impact on its success (Hyman et al, 2010; Sarkar et al, 2016).…”

Profiling consumers of private label brands in virtual retail environment - a cluster analytic approach

“…PLB are increasing globally and registering a strong presence in all mode of retail, mainly in developed countries like the USA and European countries (Nielsen, 2014). In developing countries like India, PLB is a new concept, nevertheless presently commanding growth of 12%-15% of organised retail (Mishra and Gera, 2014;Chopra, 2014;Sarkar et al, 2016). Historically, PLB represents lower price, lower quality options than national brands (Goldsmith et al, 2010).…”