Private labels/in-store brands have been a rage in the last decade. Simply because they empower retailers in differentiating their offer from competitors, building up customer loyalty and at the same time generating higher margins through efficient sourcing.

Retailers across the world have launched private labels and set them up on shelves to compete with the branded items. In the last few decades, the private labels have evolved from their knock off/copycat images to `quality products'. However, a majority of private labels are still positioned as the cheaper alternative to national brands.

While a majority of retailers have simply positioned their private labels as value alternatives, some retailers have come up with innovative strategies which circumspect the price positioning issue effectively; others have tackled it upfront and have launched premium private labels.

The first strategy is to identify the gap in the market and in accordance launch a premium private label. The UK-based supermarket Sainsbury, has launched a private label `Taste the Difference' for its premium food products. The range offers quality food products in different cuisines, made from quality ingredients.

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