Influence of National brands Vs private labels by consumer purchasing behavior

Abstract

Private labels were considered to be the dupes of the national brands when they were launched. The quality of the products brought in by the retailers has improved significantly over the years [1]. Regardless of the product category, from the groceries and food products, electronic items to the apparel, the products with the renowned national brands cost more than the private labels which are store brand products. The belief that the higher price of national brands stands for higher quality is slowly fading in the recent times. Consumers have began realizing that the generic store brand products are also manufactured by the same companies that produce the higher priced national branded products. Though the retail industry in India is dominated by the food and beverages, the private label market has been dominated by the apparel and accessories [2]. The changes in the lifestyle, psychographics, standards of living and the increase in the number of working women contribute to the change in their shopping preferences. It would be interesting to study the factors which influence these changing preferences of consumers towards the private label products. The purpose behind this study is to understand the factors which contribute to the change in the shopping preferences from standard to private label products.