National vs Private Labels

Historic / Rural Reach

Traditional /Pervasive Reach

Government Supported

Modern Formats / International

Exclusive

Brand Outlets Hyper / Super Markets Department Stores Shopping Malls

PDS

Outlets Khadi Stores Cooperatives Convenience Stores / Mom and Pop / Kiranas
Weekly

Markets Village Fairs Melas

Source of Entertainment

Neighborhood Stores / Convenience

Availability / Low Costs Distribution

Shopping Experience/ Efficiency

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

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% of Indias GDP. Over 12 Million Outlet Estimates Second Largest Employer after Agriculture.

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

Case Study Shoppers Stop

Revenues (Rs. Million)
2006 2005 2004 2003 2002 2001

6700 5110 4045 3030 2495 2191 1546 1323 945 792 492 291 177 49 6

F Y ending

2000 1999 1998 1997 1996 1995 1994 1993 1992

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

20% Private Label Branded 80%

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

What are private labels ?

Own-label brands or Private label brands are those brands that are created and owned by 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 Shoppers Stop 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 kiranas and mom-and-pop shops, while HoReCa is targeted at restaurants. But Metro is unleashing more private labels across food and non-food categories. This will include Metro tapping the dairy business as well, including the liquid milk segment, under a private brand.

Private Labels offered by Shoppers Stop Stop, Life, Haute Curry, Kashish, Elliza Donatein, Austin Reed, Vettorio Fratini, I jeans, Mario Zegnoti, Acropolis, Push & Shove, Lolita, Kenzo, Incense.

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 the market. 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 done and which methods of advertising is used.

Mens Formals In house vs National Brands at Shoppers Stop

Mens Formal
Brand

In House

National Brand
Louis Philippe 1799

In House

National Brand
Van Heusen

In House

National Brand
Zod

Austin Reed

Vettorio Fratini 1299

Mario Zegnoti 1199

Price

1899

1299

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

Mens Casuals In House vs National Brands at Shoppers Stop

Mens Casual Brand In house Brand Push & Shove 2599 Internationa l Brand GAS In house Brand I Jeans Internationa l Brand Lee In House Brand Life National Brand Weekender

Price

3000

999

1199

799

899

Quality

Excellent

Excellent

Value for Money Basic

Value for Money Basic

Good

Good

Range

High end casual wear

High end casual wear

Fashion

Fashion

Ladies

In House

National Brand Biba

In House

National Brand W

In house

National Brand Expozay

Brand

Kashish

Stop

Elliza Donatein 1299

Price

1399

1599

1099

999

1199

Quality

Excellent

Excellent

Value for Money Basic

Good

Good

Good

Range

High End Indian Wear

High End Indian Wear

Daily Wear

Daily Wear

Daily Wear

Kids Range In house vs National Brands Shoppers 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

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

CK 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

Research Study : Consumer Perception of Private Labels at Shoppers Stop

Objectives of Study :

What is the customers response to the private label products of Shoppers Stop Opportunity of the growth of these private labels product in Shoppers Stop. How do customers perceive National labels What are the preferred brands of Shoppers Stop customers

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

Findings of the Survey :

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

Findings of the Survey :

Age : Sample 150 Customers
18-24 yrs, 30, 20%

36 + yrs, 45, 30%

18-24 yrs 25-35 yrs 36 + yrs

25-35 yrs, 75, 50%

70 % of the customers are in the age group of 18 35 yrs

Gender Distribution : Sample 150 Customers

32% Male 68% Female

68 % of the respondents were females

Brand Recall - Ladies Ethnic - Sam ple 150 Custom ers

WESTSIDE 3% SDS 3% KA SHISH 3%

STOP
FA B INDIA 1 7% STOP 30%

BIBA HAUTE CURRY W

W 1 5% HA UTE CURRY 4% B IB A 25%

KASHISH SDS WESTSIDE FABINDIA

STOP and Kashish are Private Labels of Shoppers Stop

Brand Recall - Ladies Western - Sam ple 150 Custom ers

10%

7%

20% 7%

STOP Incense Eliza D Allen Solly

32% 7%

17%

Austin Reed Wills Life

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

Brand Recall - Men's Formals - Sample 150 Customers

Provogue
3% 10%

7% 7%

13%

STOP Zodiac 20%

Zodiac

Arrow VH Vettorio Fratini Mario Zegnoti Provogue

7%

Van Heusen
33%

Arrow

Austin Reed

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

Preferred Brand in Denim s - Sam ple Size 150

I Jeans Wear

7% 1%

5%
Levis

13%

35%

Lee Pepe Wrangler I Jeans Wear

19% 20%

Mufti Life

Only 1 % of respondents preferred I Jeans Wear The Private Label of Shoppers Stop in Denims

Customers who had tried Private Labels of Shopper's Stop - Sample Size 150

27% Yes No 73%

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

Do the Private Labels at Shopper's Stop offer Value for Money ? : Sample Size 150

42% 58%

Yes No

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

Do the Private Labels at Shopper's Stop offer Style & Quality Sample Size 150

27% 42%
Yes No Can't Say

31%

Less than 50 % of the customers felt that the private labels at Shoppers Stop offered Style & Quality

Most appealing factor for any m erchandise - Sam ple Size 150

Brand

17% 30%

Style
Style Price Quality Brand

Quality

40%

13%

Price

Quality & Style are the most appealing factors for selection of any merchandise, followed by brand name and price is the last factor in consideration