Private label brands in an emerging economy: an exploratory study in India

Abstract

Purpose – The purpose of this paper is to present different naming, packaging, and pricing strategies adopted by private label (PL) retailers in India. This study also aims to identify preferred private label brand (PLB) categories, factors influencing their selection, and the importance of cues in evaluation of PLBs. The overall purpose is to identify important areas for future research of PLBs in the wake of organized retail growth in an emerging economy (India is the context here). Design/methodology/approach – This study is based on in-store observations of major Indian retail chains, longitudinal analyses of customers’ shopping bills, qualitative analyses of consumer interviews, and focus group discussions. Findings – The results indicate that retailers primarily adopt “Sub-branding” (using the store name along with a separate brand name) and “House of Brands” (using a separate brand name only) strategies to sell PLBs in the Indian market. Groceries, food and beverages, and apparel are the preferred categories in PLB. Price, quality, and convenience are the major factors influencing PLB. Taste, ingredients, packaging, price, brand name, and store name are the main factors that are used to evaluate PLBs. Research limitations/implications – Due to the qualitative analyses and interpretation, there are limitations to this study which need to be empirically validated. Practical implications – This research has implications for organized retailers in understanding the various strategies used for PLBs in India. Originality/value – This study is a novel study for documenting the PLB strategies adopted by organized retailers in India. It also uses a longitudinal exploratory approach to further understanding the consumption of PLBs in India.