It is evident that Indian consumers are increasingly preferring
modern retail formats over small unorganised neighbourhood
stores. This is clearly a win-win situation for modern retail
chains, FMCG brands and consumers themselves who usually
get a better and cheaper deal in a sophisticated and air-
conditioned retail environment.
One of the factors propelling the growth of modern retail is private labels. According to a FICCI–PWC report, Shaping Consumer Trends, private labels have found both a footing and favour with the value-seeking consumer. The report further mentions that e-commerce players who have ventured into this space find that private labels contribute to 10-30 percent of their total revenues. For brick and mortar retailers also, these are much more profitable than national brands, with almost double the margins. They also help retailers create an identity of their own in the c rowded marketplace, negotiate better with national brands and sustain local suppliers and manufacturers. Our cover story this month covers the phenomenon of private labels in India. We have tried to evaluate why these are becoming popular with Indian consumers and, being at a cross-roads, which model – premium or discount – they are going to adopt in the future. Private labels are clearly emerging as a sweet spot for retailers in India.
In this issue we have also covered in detail East India’s retail market. East India is one of the most potential and untapped regions in the country. With the changed political, social and economic conditions and with consumers becoming more aspirational, transformation in the retail scenario has definitely arrived and one can say it is here to stay.
In a quest to understand the potential of East India’s retail market so that the available opportunities in the region can be actualised, we have tried to unveil hidden prospects of the region’s retail scenario so that East India’s rise will gain pace once the potential of the market has been truly understood by the existing players and the new entrants to the market