Creating Hybrid Retail Brands: Balance between National and Private Brands
Article Details
Pub. Date
:
June, 2007
Product Name
:
ADVERTISING EXPRESS
Product Type
:
BRANDING
Product Code
:
AEBR20706
Author Name
:
A M Sakkthivel
Availability
:
YES
Subject/Domain
:
Marketing
Download Format
:
PDF Format
No. of Pages
:
6
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For delivery in electronic
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Abstract
India is witnessing a massive interest and enormous influx of funds to the organized retail sector from leading business houses. The rapid increase in customer spending power and their adventurism in shopping and consumption seem to be the vital factors fuelling this growth, which has lured not only the domestic business houses but also the global retail giants to take part in this retail frenzy. Definitely, it would provide a bouquet of choices to customers and increase the power of retailers. With the power vested by the consumers, the retailers would try to maximize their earnings through different means.
Description
A significant way would be to introduce their own brands in order to control the cost and enhance the profit margins, which would not be possible with the present set-up of making major purchases from leading national manufacturers. However, the presence of national brands cannot be undermined as these brands have enormous mindshare among the consumers. This article aims to address those issues involved in highlighting the power of buyers (retailers), vital factors influencing the power of buyers and ways to strike a balance between national and private brands to build trust among the consumers.
Private brands are created by retail giants in order to curb the power of national brands and to enhance their profit margins as well. The private brands range from groceries to lifestyle goods to consumer durable products. Wal-Mart can be spoken of as the genesis of retail private brands in terms of the enormous scalability, execution and winning the trust of consumers. In India too, the major retail players viz. Big Bazaar, etc. are involved in bringing retail private brands on groceries, lifestyle products and consumer durables.