“Private labels business now contributes around three per cent to our revenue. We plan to up it to 10-15 per cent in the next three years,” Aditya Birla Retail’s CEO, Thomas Varghese told PTI.
The retailer is considering to introduce new products under private labels in personal care products segment. The products to be introduced by March this year, will include hair oil, hair styling gel, shaving creams and gels and toothpaste, among others.
“The personal care products would be launched by March. This would be on a pilot basis and the products would initially be launched in Vishakapatnam. Depending on the market feedback we will then enter other markets,” Varghese added.
The company is already selling food products such as food products including ketchups, jams, honey, carbonated drinks, chips and cookies in private labels under the ‘Feasters’ brand.
The retailer is planning to add 250 supermarket stores by March 2010.
Click here
Click here
3 responses so far ↓
Anil Dogra // Feb 24, 2009 at 8:13 am
These Organized Retails’, so called ‘Professionals’ are totally inept. They think that by creating a ‘toothpaste’ in their own name, at this juncture, can increase sales. They ought to be ‘out of their minds’, thinking that it would.
Anil Dogra // Feb 24, 2009 at 8:40 am
Have they established the trust yet, for people to buy their products.
Can they very well think that they can produce a better ‘toothpaste’ or a better ‘hair oil’ or ‘gel’ than the existing brand.
They are thinking too simplistically. They think its recession time, and people will pinch pennies and flock to their products.
Instead, they should work with the tier 2 or tier 3 brands in a category and have exclusive deals with them, and work with them to develop innovative products. These could be high margin avenues.
But the so called ‘professionals’ think that just because they have a chain of 100 stors, they are the kings of retail in India already, and can go the whole hog themselves.
They will learn the hard way.
Wesley-Anne Rodrigues // Aug 31, 2009 at 11:46 am
I would have to disagree with Anil Dogra’s comments.
Private label brands, even though a recent phenomenon, has a record of doing well, especially since they manage to deliver quality household products, at competitive prices, on par or lower than manufacturer brands.
The manufacturer brands and FMCG giants are already sitting up and taking notice of this consumer trend of people being open to trying out private label brands, especially in low involvement categories like staples or cleaning agents.
And, yes I wouldn’t want to speculate, but I wouldn’t be surprised if the private label guys do emerge as kings of retail in the near future.
Leave a Comment