Sales of brands and private labels owned by retailers across the apparel segment are surging as consumers increasingly shift to lower priced brands in supermarkets and department stores.
Sales of most lifestyle retailers have surged by double-digits despite price hike. For instance, the sales of Shoppers Stop reached highest levels in a quarter for private brands. The retailer’s private brands grew by 29 per cent while their average selling price increased by 50 per cent during the quarter. The retailer’s volume more than doubled, and its private brand contribution reached 15 per cent at an overall level and 21% within apparel, says Venu Nair, Managing Director.
The private brands of Reliance Retail also noted a six-fold increase in business to account of 30 per cent of overall sales. The company extended its own labels beyond stores and competed with national brands at the local grocers level.
Reliance Retail launched 14 new brands during this period, which helped it to grow over 300 basis points on its own brand share into overall performance for the business, says Gaurav Jain, Head, Strategy and Business Development.
Rising inflation forced consumers to skimp on expenses and opt for cheaper alternatives, and in some cases, even unbranded ones. Recent Kantar data shows unbranded products grew by 7-16per cent for categories such as edible oil, butter, flour and toilet cleaners, while branded ones in these segments declined by 2-11 per cent.