Retailers in the fashion and food sectors are reporting a jump in sales of their own brands or private labels as rising prices put pressure on household budgets. This suggests that consumers are increasingly turning to these more affordable brands in supermarkets and department stores.
In order to increase profits and provide customers with more affordable options, most shops, particularly those in the food and grocery sector, launch their own private brands or cut-price copies of mass-produced goods. Merchants of lifestyle products have reported double-digit growth despite price increases, unlike retailers of fast-moving consumer items, whose sales have decreased.
For instance, Reliance Retail reported that its own brands business expanded six times year over year and currently accounts for 30%, while Shoppers Stop NSE 2.39% claimed to have had the greatest private brand sales ever in a quarter.
