A new report from Datamonitor suggests that private label products are posing a threat for FMCG companies in India.

According to the consumer survey, The Impact of Private Labels on FMCG Companies in India, consumers now perceive these store brands as offering comparable quality to national brands in addition to their value propositions.

Indian retailers are emphasising the growth of their private label brands, which is resulting in margin expansion and providing greater bargaining power in negotiations with FMCG companies, Datamonitor contended.

Retailers, who started launching private labels as value alternatives, are now mirroring national brands but offering these products at a lower price. Retailers are also launching products with tiered pricing to cater to a wider audience while maintaining store positioning.
 
source: justfood.com