In a global study on private labels, Nielsen has found thatIndian shoppers have undergone a change of perception about private labels. Around 70 per cent of the 501 Indian respondents agreed that the quality of store brands were as good as name brands, though not necessarily of higher quality.
While modern trade accounts for only nine per cent (compared to 50 per cent in other Southeast Asian countries) of the Rs 2.13 lakh-crore fast-moving consumer goods (FMCG) market, it has been one of the most successful private label markets in Southeast Asia. About five per cent of all modern trade sales come from store brands (versus one per cent in China, 1.7 per cent in Indonesia and three per cent in Thailand). Private labels in FMCG (grocery stores, supermarkets) grew 27 per cent between 2012 and September 2014.
Ranjeet Laungani, executive director, Nielsen India, says, “In various studies, we have found that modern trade shoppers who find private label quality is improving to be at par with name brands is increasing every year, by 16 per cent compared to last year, for example.”