Store Brands and International Retailer Growth Expected in India in 2010

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January 12, 2010

Store brands proliferation and growth of international retail brands are expected to be a big focus in the Indian retail sector in 20101, an industry consultant told the Business Standard (India).

Numerous retailers such as Future Group, Spencer’s Retail and Aditya Birla are boosting their private label offerings to bolster margins, according to the report.

Future Brands, which manages the private labels of Future Group, is expanding its store brand portfolio and plans to launch it own lingerie and personal care line, Future Group CEO Kishore Biyani told Business Standard. Thirty percent of the retailer’s sales are currently in store brands.

Aditya Birla Retail, which has more than 400 store brand products, plans to grow its store brand market share from19 percent to 25 per cent of sales next year, according to the report. Meanwhile, RPG’s Spencer’s Retail plans to double its store brand revenue contribution over the next couple of years.

And international retailers are expected to grow their presence in India after two years of domestic focus during the global recession.

Wal-Mart already has one store open while U.K.’s Tesco “is providing back-end support to Tata’s hypermarket Star Bazaar” and Carrefour is said to be talking to Kishore Biyani’s Future Group for a possible [joint venture], the report said.

“In 2010, a lot of international retailers and brands are most likely to look at India as global markets have stabilized and the Indian economy has proved to be better than most other countries. These factors give a lot of confidence for them to invest in India,” said Arvind Singhal, chairman of Technopak Advisors, a business consultancy.

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