Private labels to save retailers’ skin

In a bid to improve bottomline, Indian retail chains are moving beyond mere price-positioning for their range of private labels. Eager to cash in on missing gaps in the market, the chains are building a basket of private label brands targeting specific consumers' needs.

e4m by exchange4media Staff
Published: Feb 16, 2007 8:23 AM  | 3 min read
Private labels to save retailers’ skin

In a bid to improve bottomline, Indian retail chains are moving beyond mere price-positioning for their range of private labels. Eager to cash in on missing gaps in the market, the chains are building a basket of private label brands targeting specific consumers' needs.

Retail biggies, including Pantaloons, Westside, Ebony and Shoppers' Stop, believe beefing up the merchandise mix for private labels will improve margins and increase the average billing size. It is also expected to help retailers retain their gross margin levels, especially at a time when overhead costs are skyrocketing. "Today, the offering of private labels is not about price. The private label brands are filling the missing gap in terms of both range and quality. Private labels are more about targeting specific merchandise for youth and mature customers," Shoppers' Stop CEO Govind Shrikhande told ET.

Retailers are finding specialised categories like women's luggage, accessories, gym wear, lounge wear, yoga wear and clothing for top corporate executives as segments where there's a dearth of options. "Which is why, there appears to be an effort at the retailers' end to address this gap by launching a host of aggressively-priced private labels," said Trent marketing head Neeti Chopra.

Till recently, Indian retail chains had been positioning their private labels nearly 20-40% cheaper than the established brands. While such low-price private labels may still exist, the focus is shifting towards developing a portfolio of brands with distinct positioning for each brand. Shoppers' Stop, for instance, has added two new private label brands this season targeting the youth.

Retail chains are trying to understand unfulfilled demand existing in Indian market through extensive need-gap analysis. "Consumer sentiments are changing, and they now prefer premium private labels. As a result, the merchandise mix for private labels is also undergoing a sea change," said Ebony Retail Holdings CEO Lalit Kumar.

Ebony, in turn, has recently brought out a new private label for casual wear - Offtrack - at a price-point (Rs 700-1,200) matching other premium brands in the segment. "This brand is already accounting for 12% of our sales within months of its launch," Mr Kumar added.

Elaborating on the trend, Ms Chopra added: "Expanding private labels which meet consumer's demand help us address different consumer segments, build brand equity, increase footfalls and ensure repeat purchases." "At a time when cost of retail space and manpower is on the rise, private labels will provide retailers with a cushion to keep their margins intact and be competitive," said retail consultancy, Technopak Advisors, chairman Arvind Singhal.

Pantaloons is also building each of its private brands based on demographic and psychographic classifications. "Private brands allow us to create new fashion and present it to customers more frequently driving our positioning of 'Fresh Fashion'," added Pantaloon Retail India spokesperson. Analysts feel this move by retailers will help create a distinct differentiation from the emerging competition. "In a market like India where the penetration of branded goods is quite limited, there is huge scope for retailers to increase the basket of their own brands," Mr Singhal said.

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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