National vs Private Labels

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National vs Private Labels


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Historic / Rural

Reach

Traditional /Pervasive

Reach

Government Supported Modern Formats /

International

Exclusive Brand Outlets

Hyper / Super MarketsDepartment Stores

Shopping Malls

PDS Outlets

Khadi Stores

Cooperatives

Convenience Stores /

Mom and Pop / Kiranas

Weekly MarketsVillage Fairs

Melas

Source of Entertainment Neighborhood Stores /

Convenience

Availability / Low Costs

Distribution

Shopping Experience/

Efficiency

Source : Ernst & Young, The Great India Retail Story, 2006


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There are 12 million retail outlets in India.

Highest number of outlets per capita in the world.

India is ranked the 5th largest retail destination across the globe.

Total Private Consumption Expenditure in India 375 Billion USD.

Retail Sale 205 Billion USD (55%).

Organized Retail 6.2 Billion USD (3%).

Retailing contributes 35% ofIndias GDP.

Over 12 Million Outlet Estimates

Second Largest Employer after Agriculture.

Source: Ernst & Young, The Great India Retail Story, 2006


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Case Study Shoppers Stop

Revenues (Rs. Million)

6

49

177

291

492

792

945

1323

1546

2191

2495

3030

4045

5110

6700

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

FY

ending

Source: Annual Report of M/s. Shoppers Stop Ltd, 2005-2006


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20%

80%

Private Label

Branded

Source: Annual Report of M/s. Shoppers Stop Ltd, 2006-2007


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What are private labels ?

Own-label brands or Private label brands are those brands that are created and ownedby businesses that operate in the distribution channel such as distributors, retailers.

Sometimes the retailers entire product range will be own-label such as Westside.

More often, the retailer will mix own-label and manufacturers brands such as ShoppersStop or Big Bazaar.

Private label products encompass all merchandise sold under a retailers brand.

German wholesaler Metro has two distinct brands ARO for smaller retailers like kiranasand mom-and-pop shops, while HoReCa is targeted at restaurants. But Metro is unleashingmore private labels across food and non-food categories. This will include Metro tappingthe dairy business as well, including the liquid milk segment, under a private brand.


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Private Labels offered by Shoppers Stop

Stop, Life, Haute Curry, Kashish, EllizaDonatein, Austin Reed, Vettorio Fratini, I

jeans, Mario Zegnoti, Acropolis, Push &

Shove, Lolita, Kenzo, Incense.


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4 Ps of Private Labels ..

The four Ps that play crucial role in launching of private label are :

Product: Which product is launched? Who are its competitors? Who are

the target customers for the product?

Price: What should be the products ideal price so it can sustain in themarket.

Place: At which place product should be launched so that it can able to

achieve its sale targets.

Promotion: How is the products promotions and advertising being doneand which methods of advertising is used.


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Mens Formals In house vs National

Brands at Shoppers Stop

Mens

Formal

In House NationalBrand



Brand Austin Reed Louis

Philippe

Vettorio

Fratini

Van Heusen Mario

Zegnoti

Zod

Price 1899 1799 1299 1299 1199 1255

Quality Excellent Excellent Good Moderate Good Good

Range High end

corporate

wear

High end

corporate

wear

Office Wear Office Wear Party

Wear

Party

Wear


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Mens Casuals In House vs National

Brands at Shoppers Stop

Mens

Casual

In house

Brand

Internationa

l Brand

In house

Brand

Internationa

l Brand

In House

Brand

National

Brand

Brand Push &Shove

GAS I Jeans Lee Life Weekender

Price 2599 3000 999 1199 799 899

Quality Excellent Excellent Value forMoney Value forMoney Good Good

Range High end

casual wear

High end

casual wear

Basic Basic Fashion Fashion


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Ladies In House National

Brand

In House National

Brand

In house National

Brand

Brand Kashish Biba Stop W Elliza

Donatein

Expozay

Price 1399 1599 1099 999 1299 1199

Quality Excellent Excellent Value for

Money

Good Good Good

Range High End

Indian Wear

High End

Indian Wear

Basic Daily Wear Daily

Wear

Daily

Wear


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Kids Range In house vs National

BrandsShoppers Stop

Kids In House International

Brand

In House National

Brand

In House National

Brand

Brand Stop

Everywhere

Ginny &

Jony

Kashish Ruff Life Junior Lilliput

Price 499 599 399 399 199 259

Quality Excellent Excellent Good Good Value for

Money

Value for

Money

Range Occasional

Wear

Occasional

Wear

Daily Wear Daily Wear Basic Basic


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Non Apparels In House vs National

Brands

Non

Apparels

In House International

Brand

In House International

Brand

In house International

Brand

Brand Push &

Shove

Pure Poison Kenzo Azzaro Visit Lolita C K

Summer

Price 50

ml

4500 5000 2500 2700 2000 1800

Quality Excellent Excellent Good Good Value for

Money

Value for

Money

Range Occasional

Wear

Occasional

Wear

Daily Wear Daily Wear Basic Basic


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Research Study : ConsumerPerception of Private Labels at

Shoppers Stop

Objectives of Study :

What is the customers response to the private label productsof Shoppers Stop

Opportunity of the growth of these private labels product inShoppers Stop.

How do customers perceive National labels

What are the preferred brands of Shoppers Stop customers


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Methodology :

Primary survey through questionnaire : 150customers at Shoppers Stop, Andheri,

Mumbai


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Findings of the Survey :

75% of the respondent s visit Shoppers Stop at least once a month.


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Findings of the Survey :

Age : Sample 150 Customers

18-24 yrs,

30, 20%

25-35 yrs,

75, 50%

36 + yrs,

45, 30% 18-24 yrs

25-35 yrs

36 + yrs

70 % of the cus tomers are in the age group of 18 35 yrs


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Gender Distribution : Sample 150

Customers

32%

68%

Male

Female

68 % of th e respo ndents w ere females


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Brand Recall - Ladies Ethnic - Sample 150 Customers

STOP

30%

BIBA

25%

HAUTE CURRY

4%

W

15%

KASHISH

3%

SDS

3%

WESTSIDE

3%FABINDIA

17%

STOP

BIBA

HAUTE CURRY

W

KASHISH

SDS

WESTSIDE

FABINDIA

STOP and Kashish are Private Labels of Shoppers Stop


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Brand Recall - Ladies Wester n - Sample 150 Custom er s

20%

7%

17%7%

32%

10%7% STOP

Incense

Eliza D

Allen Solly

Austin Reed

Wills

Life

Austin Reed, Eliza Donatein and STOP are Private Labels of Shoppers Stop


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Brand Recall - Men's Formals - Sample 150 Customers

13%

20%

33%

7%

10%

3%

7%

7%

STOP

Zodiac

Arrow

VH

Vettorio Fratini

Mario Zegnoti

Provogue

Austin Reed

National Brands Arrow and Zodiac score over the Private Labels of Shoopers Stop

Arrow

Zodiac

Van Heusen

Provogue


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Preferred Brand in Denim s - Sam ple Size 150

35%

20%

19%

13%

1%7%5% Levis

Lee

Pepe

Wrangler

I Jeans Wear

Mufti

Life

I Jeans Wear

Only 1 % of resp ondents preferred I Jeans WearThe Private Label of Shoppers Stop in Denims


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Customers who had tried Private Labels of

Shopper's Stop - Sample Size 150

73%

27%

Yes

No

Almost 3/4thof the customers have tried Private Labels of Shoppers Stop


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Do the Private Labels at Shopper's Stop offer Value

for Money ? : Sample Size 150

58%

42% Yes

No

There is a large set of customers ( 58 % ) who feel that the Private Labels at Shoppers Stop offer

Value for Money


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Most appealing factor for any m erchandise - Sample Size 150

30%

13%40%

17%

Style

Price

Quality

Brand

Quality & Style are the most appealing factors for selection of any merchandise, followed by brand

name and price is the last factor in consideration

Quality

Style

Price

Brand


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National vs Private Labels

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