Friday, June 24, 2011

Power of Private Labels (Part 1)



   Pantaloon Retail, part of the Kishore Biyani-promoted Future group, has set its eyes on enhancing the basket of private label products sold at Big Bazaar, the hypermarket format from the retail major.

“We already have a range of private label products at our hypermarkets in apparel, food and electronics. At present, this segment contributes about 12-14 per cent to our sales. We are planning to increase this to 25 per cent in the next two years,” Mr Rohit Malhotra, Head (Operations – South Zone) of Pantaloon Retail, told Business Line.

“We have crossed the critical mass of 45-50 a few months ago, opening up the opportunity in private labels. This number supports a certain amount of manufacturing, ensuring cost competitiveness,” he said.
The Big Bazaar network currently has 70 stores across major cities, including 22 in the South.

The portfolio of products in food, electronics, apparel and cosmetics would be expanded. The company, however, would take the outsourcing route instead of having its manufacturing lines. “A big chunk of private label products would come from outsourcing,” he said. 

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