Friday, December 4, 2009

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

The University of Pennsylvania's Marketing portal reports that India's retailers are filling their shelves with private label goods.

The report states,

In India, the growth of store brands is a function of increasing retail sophistication. Large-format, modern retail stores (known as the "organized" retail sector) -- as opposed to smaller, traditional "mom and pop" stand-alone stores -- are presently only a small portion of total retail in the country. A report by investment bank Northbridge Capital, titled "Indian Retail Research 2009," estimates the total Indian retail market at US$450 billion, growing more than 30% a year and expected to cross US$720 billion in 2011. Of this, organized retail accounts for just 14%, or US$63 billion -- although this sector is expected to grow 40% faster than the overall market to reach US$90 billion in 2010.

What do you think of the surge in private label goods by Indian retailers? What other factors may be causing this boom?

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