Increase in internal brands of retailers

Bangalore: Private labels from big-box retailers and wholesalers have seen a sharp increase in sales since the close, because chains have better control over the supply chains of their own products than consumer goods companies.

Spencer’s Retail, Future Group and Metro Cash and Carry have had more than 50% growth in their own brands of essential products, including flour. noodles, lentils, spices and sinks. In contrast, supplies from major consumer goods brands were affected first due to declining production at manufacturing plants and then to poor distribution capacity due to lack of labor.

The best availability is structural. Our personal brand providers are geographically distributed. During the incorporation, its factory and distance to major distribution centers are resolved, said Devendra Chawla, CEO of Spencer’s Retail and Nature’s Basket.

The company's categories of tea, Indian namkeen, hakka noodles, wafer biscuits, breakfast cereals, pasta and floor cleaners grew more than 50% during the period from mid-March to April, compared to February. Additionally, the unavailability of many regular brands led consumers to try these products. The savings on this is significant, around 15-20%, and if the savings mindset prevails, they will have a great opportunity to grow, Chawla added.

Metro Cash and Carry-owned brands like Aro and Rioba in categories like noodles, snacks, spices, dishwashing products, sinks, hand sanitizers, and surface cleaners have also grown rapidly in the past 45 days. While lentils grew 30% compared to February, they have now dropped to 15-20% because most customers have sourced.

April will be a record month for our private labels, said Arvind Mediratta, CEO of Metro Cash&carryindia.ourownhotdrinksgrew46%comparedtosegmentgrowthof34%,confectioneryproducts57%comparedto45%,andgroceriesandprocessedfoods70%comparedto48%forthegeneralcategory,hesaid.

whilemanynationalconsumergoodsbrandsclosedtheirwarehousesandfreightforwardersinthefirstfewweeksofclosing,retailersshippedtheirowntruckstoensurebetteravailabilityoftheirinternalbrands.

futuregroup,whosebrandsincludedesiattaandvegaffaire,saidthatinthecurrentscenario,customersarenotchoosingabrandbutbuyingaproducttheyneed.bettergrowthhasbeenseeninhandwashingandhouseholdcleaningproducts,cookies,namkeens,pasta,andlegumes.

“wehavemanagedavailabilitywellassuppliersproduceonlyforus.weworkonacontinuousdemandforecastwiththemtoplantheirproductionandpackagingmaterial.sotheyhadfinishedtheproductswhenwewantedthemjustbeforeclosing,”saidchawla.

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