Overall, the private label share is greater than 10% of our overall sales: Shashwat Goenka
In an exclusive interview with Shashwat Goenka – Sector Head Spencer’s Retail RP Sanjiv Goenka Group highlights the aggressive plans to expand private label portfolio.BY Shipra Srivastava | March 09, 2017 | comments ( 0 ) |
Private labels are usually seen as low cost alternative to expensive premium brands. What is your comment on same? Can private label compete with premium brands?
An own-brand program is built on the basis of offering the best value products to the consumers. Consumers are seeking ‘Quality’ and ‘Value’ for every purchase they make. So private label products are not always alow cost alternative to expensive brands, but it is about providing retail consumers a comprehensive range of high quality product offerings at the best price in a particular category. Yes, own brands can compete with national brands.We have seen that with some of our products.
In how many categories you do private labels? Which private label seems to be churning better margin for you?
Spencer’s Retail hasits own brands across multiple categories includingstaples, personal care, home care, processed food and frozen food. In all our categories of operations, our own brand gives us a much higher margin compared to national brands.
Kindly mention the percentage of sales generated via private labels?
Overall, the private label share is greater than 10% of our overall sales.
What is your merchandising strategy to place private labels, premium brands and sub brands(if any) within store also online?
Our own-brandsare a representation our tagline, ‘Makes fine living affordable’. True to the store and category planogram, our private label is placed along with national brands at our store shelves.
From where you are sourcing the raw material for your private label? Kindly also throw light upon your manufacturing facility?
Sourcing of raw materials forprivate label products is spread across the country with different categories being sourced from different locations. We maintain a tough quality check processat all such facilities with regular inspections by our quality team along with third party certification to maintain our quality standards. Careful planning coupled with bulk buying and logistics excellence ensures the minimum ‘go to market time’ and most cost effective way of delivering the product to the consumers.
Can you provide a rough estimate, averagely how many products ( private labels) are being sold on daily basis?
We have over 250 SKUs of our own brands across categories in our portfolio and on an average sell more than 70,000 pieces of our own-brand products every day.
What is your TG for private label retailing?
Our TG for our own brands is the typical Spencer’s shopper.
Do you plan to launch any new private label (across the categories) in near future?
We have an aggressive private label strategy at Spencer’s Retail and are constantly launching new products under our own brands.
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