Report, based on a consumer survey, reveals that while the adoption of private labels began with its value proposition, consumers perceive these store brands are offering quality at par with other national brands.
New Sets of manufacturers have sprung up to cater this private label requirements or manufacturers with idle capacity see this as good opportunity .Bringing extra jobs and employment .
Private label products concepts which has been successful and initiated by many super markets , malls , mega marts convenience stores are now being taken over by individual entrepreneurs , businessmen and investors . Private label concepts is giving tough times to branded biscuit category world over . Business groups who have money to invest are following this route for profits .
Advantages for private label products
Investors need not to spend on assets
Test market for any product
New Product development
No overheads for this kind of business
Manufacturer with Idle capacity can have orders
Big Brands manufacturers have to innovate , launch new products with lower price strategy to counter this private label products invasion. Trade margins to be re worked with big retailers