Datamonitor report highlights private labels impact in India

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Mongezi Mtati

Datamonitor has released a new consumer insight report entitled The Impact of Private Labels on FMCG Companies in India. It indicates that private labels are increasingly posing threat for FMCG companies in India, for though the adoption of private labels began with the value proposition, consumers now perceive these brands are offering quality on par with other national brands

“The increased scale of operations of retailers is shifting the bargaining power from FMCG companies to retailers. The growing adoption of private labels can compel FMCG companies to reassess their trade margins or relationship with retailers,” explains Vaibhav Khera, director, India Consumer Markets Researcher at Datamonitor.

To highlight this threat, it has analysed several product categories based on private label penetration and attractiveness where attractiveness is defined with respect to category involvement, brand loyalty and price sensitivity, and through this, it has highlighted the product categories that are current and potential threat to FMCG companies in the near future.

The report analyses survey results and insights on consumer shopping behaviour and preferences while making purchase decisions. It also reveals the strategies that FMCG companies can adopt to avoid competition from private labels and highlights the consumer dynamics, which will be relevant for FMCG companies in framing their product strategy.

For more information go to www.datamonitor.com.