AB Retail to push private labels

Aditya Birla Retail is now concentrating on increasing volume sales through special schemes in

private labels rather than adding more products. It has reduced its private labels in fast moving consumer goods to 290 from 350. In staples, private labels are more than 200. Sales from private labels are 19 to 20 per cent of the Aditya Birla Retail’s total sales. ABRL currently sells a range of private labels covering FMCG, apparel and footwear. Among its major in-house brands are More (staples), Blue Earth (apparels), True (footwear), Feasters (food-based items), Kitchen’s Promise (ready-to-eat) and Enriche (soaps and conditioners). Private labels in the stores are priced 10 to 15 per cent less than branded labels. This helps the retailer to cut out the distribution cost which it passes on to consumers.

The retail chain is also concentrating on increasing the customer base for its two-year-old loyalty program -- Clubmore. The company plans to enter own branded consumer durables and electronics products in its 14-16 operational hypermarkets. To begin with the retailer plans to first introduce small appliances like irons, mixer grinders and then move to bigger white goods. Indian consumers are taking to private labels not only because of the price but also because of the perceived quality.