ARTICLE - MARKETING
Private labels getting into competition
Private labels bakery products have become corner stone for many food retails to
rake up good profits . Private labels have gained much of popularity with food retails
who are gradually moving towards their own brands than to put big brands . Food
retailers either with their own facility of outsourced manufacturing gets their bakery
product .
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 .
Major food retailers like Reliance, Aditya Birla and Food Bazaar all have their private
label bakery products . Private label foods have already been practised by retail
giants like Wall Mart , Carrefour and Tesco .In addition to private label products they
have live bakeries placed in their food courts.
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
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