Monday, September 25, 2006

Retailers to push private label FMCG products

The Economic Times reports:

Several retailers such as Subhiksha, Spencers' and Big Bazaar are planning to push private label oral care products to compete with FMCG majors. Spencer’s is keen on personal care products. JH Mehta, President Spencers' Retail said,
"The products will be targeted at the value-conscious consumer. Consumers will slowly understand the value of private labels, even in oral hygiene segment, since these will be produced by the same manufacturer."
Subhiksha is planning to focus exclusively on private labels for oral care products and hopes to win customers by offering superior products at lower prices. To compete effectively with FMCG majors, the retailers plan to increase branding and marketing to promote these products, including direct contact with customers, sampling and in-store branding etc.

Contract manufacturers such as JHS Svendgaard Labs, supplier of dental care products to eight international retail chains in the US, Europe and the Middle East are betting on India and increasing manufacturing capacity by 300% to catch a large slice of this emerging market.

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