Why businesses focusing on private label brands?

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Lot of e-commerce and retail sector players such as Flipkart, Amazon and Bigbazaar are focussing on private label brands, why they are so bullish on them ?

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Posted by Ajay
Asked on 2017-04-18 11:07 pm
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Private label are brands owned by the retailer rather than the producer or manufacturer.Please note that the private label in India currently has a market worth estimated at Rs 13 billion, which accounts for 10-12% of the organized retail in India. Here are the reasons why e-commerce businesses are behind private labels:
• High Margins, Low cost as they directly selling so all omission is theirs
Now private labels enjoy as much as brand strength as highly-priced brands
• Private labels have flooded the market with new channel and better reach to the customers using aggressive marketing tools such as showrooms in all high-end malls, promoters directly involving celebrities in their promotions and using social media to establish themselves as a brand
• They are continually expanding into new and diverse categories, therefore, defying general trends- these generic trends are massively produced by brands thus they have exclusivity
• • Also the fact that Indian consumers are more conscious about the quality and newness of a product than being brand conscious

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Posted by Gunjan Rastogi (Questions: 2, Answers: 126)
Answered on 2017-04-25 4:28 pm
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