More Choices in Store: India's Retailers Are Stocking Up on Private Label Br...

That happens in three cases, according to Kumar and Steenkamp: where a copycat product offers consumers a choice even if prices are similar; where the market can be expanded by offering similar-quality products at significantly lower costs; and where innovative products that are not available through national brands are launched.

private labels have "higher acceptance in products and categories that have low brand preference and high functional appeal.

excellent article.. didnt want to copy paste any more..

 

 

Sent to you by Joe via Google Reader:

 

 

More Choices in Store: India's Retailers Are Stocking Up on Private Label Brands

via Knowledge@Wharton on 12/3/09

Last year, Tasty Treat, a private label launched by Indian supermarket chain Food Bazaar, came into the spotlight following a disagreement over margins between the retailer and Frito-Lay. Frito-Lay temporarily broke ties with Food Bazaar, which promptly stocked its shelves with Tasty Treat potato chips. The result: The homegrown chip brand raced ahead. In the past, store brands were considered cheap, no-name substitutes for "real" brands. Today, they are found across a spectrum of products -- from groceries and staples to apparel, consumer electronics and mobile handsets -- and are considered brands in their own right. What accounts for the change in status of private labels among retailers and consumers alike?

 

 

Things you can do from here:

• Subscribe to Knowledge@Wharton using Google Reader
• Get started using Google Reader to easily keep up with all your favorite sites