Customer Perception of Private Labels Brands vs National Brands in Indian Retail Industry
CUSTOMER PERCEPTION OF PRIVATE LABELS BRANDS VS NATIONAL BRANDS IN INDIAN RETAIL INDUSTRY
1. INTRODUCTION
1.1 INTRODUCTION TO INDIAN RETAIL INDUSTRY:
The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by the year 2010. According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, Indian retail industry is the most promising emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010.According to a report by Northbride Capita; the India retail industry is expected to grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total market share. A McKinsey report 'The rise of Indian Consumer Market ', estimates that the Indian consumer market is likely to grow four times by 2025. Commercial real estate services company, CB Richard Ellis ' findings state that India 's retail market is currently valued at US$ 511 billion (Bang, 2009).According to the Investment commission of India, India is expected to be among the top 5 retail markets in the world in 10 years. India 's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As an emerging market with high growth rates, consumer spending has risen
1. INTRODUCTION
1.1 INTRODUCTION TO INDIAN RETAIL INDUSTRY:
The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences of the consumers, the industry is getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by the year 2010. According to the 8th Annual Global Retail Development Index (GRDI) of AT Kearney, Indian retail industry is the most promising emerging market for investment. In 2007, the retail trade in India had a share of 8-10% in the GDP (Gross Domestic Product) of the country. In 2009, it rose to 12%. It is also expected to reach 22% by 2010.According to a report by Northbride Capita; the India retail industry is expected to grow to US$ 700 billion by 2010. By the same time, the organized sector will be 20% of the total market share. A McKinsey report 'The rise of Indian Consumer Market ', estimates that the Indian consumer market is likely to grow four times by 2025. Commercial real estate services company, CB Richard Ellis ' findings state that India 's retail market is currently valued at US$ 511 billion (Bang, 2009).According to the Investment commission of India, India is expected to be among the top 5 retail markets in the world in 10 years. India 's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As an emerging market with high growth rates, consumer spending has risen
References: 1. A C Nielson (2005) “ The Power of Private Labels in Europe” An Insight in to Consumer Attitude(accused on September 1,2009) A C Nielson 2003, 2006, 2008 2 3. Cunningham, I., Hardy, A., & Imperia, G. (1982), Generic brands versus national brands and store brands. Journal of Advertisin g Research, 22(5), 25-32 4 5. L. Berry (2000). Cultivating service brand equity. J. Acad. Mark. Sci. 28(1): 128--137. 6. Sanjay K. Dhar J.Hoch, Why Store Brand Penetration Varies by Retailer, journal Marketing Science, Volume (Year): 16 (1997)Issue (Month): 3 ()Pages: 208-227 7 12. Krist of De Wulf, Gaby Odekerken-Schroder, Frank Goedertier, Gino Van Ossel, (2005) "Consumer perceptions of store brands versus national brands", Journal of Consumer Marketing, Vol. 22 Iss: 4, pp.223 -232 13