With rising demand for cost-effective private labels and brands, branded retail giants are betting big on increasing consumption of private labels along with brands by launching new sub brands, apart from expanding the product portfolio under private brands. The demand for private labels and brands grew 40 percent during Q2 2009-10, experts say.
Private labels in food and non-food products have been around for some time now, but saw new demand when consumers began to go for cheaper options in products around the second quarter this year. This happened mostly in certain FMCG products and pulses, where the prices were high. This brought in an opportunity for retailers to launch new variants in private labels.
(Source: The Financial Express)