Private label brands in an emerging economy: an exploratory study in India
International Journal of Retail & Distribution Management
ISSN: 0959-0552
Article publication date: 8 February 2016
Abstract
Purpose
The purpose of this paper is to present different naming, packaging, and pricing strategies adopted by private label (PL) retailers in India. This study also aims to identify preferred private label brand (PLB) categories, factors influencing their selection, and the importance of cues in evaluation of PLBs. The overall purpose is to identify important areas for future research of PLBs in the wake of organized retail growth in an emerging economy (India is the context here).
Design/methodology/approach
This study is based on in-store observations of major Indian retail chains, longitudinal analyses of customers’ shopping bills, qualitative analyses of consumer interviews, and focus group discussions.
Findings
The results indicate that retailers primarily adopt “Sub-branding” (using the store name along with a separate brand name) and “House of Brands” (using a separate brand name only) strategies to sell PLBs in the Indian market. Groceries, food and beverages, and apparel are the preferred categories in PLB. Price, quality, and convenience are the major factors influencing PLB. Taste, ingredients, packaging, price, brand name, and store name are the main factors that are used to evaluate PLBs.
Research limitations/implications
Due to the qualitative analyses and interpretation, there are limitations to this study which need to be empirically validated.
Practical implications
This research has implications for organized retailers in understanding the various strategies used for PLBs in India.
Originality/value
This study is a novel study for documenting the PLB strategies adopted by organized retailers in India. It also uses a longitudinal exploratory approach to further understanding the consumption of PLBs in India.
Keywords
Acknowledgements
The authors would like to thank Professor Gajendra K. Adil, Professor Puja Padhi, Professor Shishir K. Jha, and Professor Ashish Singh for their inputs on the initial drafts of this manuscript.
Citation
Sarkar, S., Sharma, D. and Kalro, A.D. (2016), "Private label brands in an emerging economy: an exploratory study in India", International Journal of Retail & Distribution Management, Vol. 44 No. 2, pp. 203-222. https://doi.org/10.1108/IJRDM-07-2015-0102
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited