Consumers’ Perception toward Private Brands with Reference to Grocery Products

Abstract

Organized retailing in India has witnessed a massive growth in recent times. Big corporates have entered into this growing sector. The Private brands i.e., the brands promoted by the organized retailers are the major revenue drivers for these retail firms. These organized retailers predominantly having presence in the segments such as apparels, food and grocery, healthcare, personal care, lifestyle products etc. In the majority of the product categories established national brands are doing extremely well.But the private brands are generating revenues for the retailers mainly in the grocery segments. The important demographic variables like income, occupation and lifestyle have a key role in shaping up the perceptions of consumers of private brands. Private brands are a head of national brands with regard to addressing the price sensitive consumers when compared to national brands. The success of private brands is closely associated with the store image. The national brand manufacturers have invested huge capital on packaging innovations to draw the attention of the consumers. The quality savvy consumers prefer national brands over the private brands. The organized retailers are focusing much on value added services to have competitive advantage. This study found that consumers perceive private brands also offer better quality and greater value for money like national brands especially grocery products.