Private labels to cost more

MUMBAI: Consumers are in for some more bad news on the price front. As if price increases by branded players across categories was not enough, even private label brands, which consumers usually trade down to as it is a cheaper option, are now poised to get expensive. Retailers like Shoppers Stop and Pantaloon are now looking to hike prices of their private labels in the apparel segment by as much as 10-15%, while food and consumer products will see a marginal increase.Private labels are brands owned by modern retailers and are priced lower compared to branded products because they offer higher margins to them.
Departmental store Shoppers Stop, which reported a good set of quarterly numbers on Tuesday, said it will look to hike prices of its private labels in line with other branded players in the apparel segment by 10-15%. "Due to the rise in prices of cotton by as much as 50%, we have to pass on the costs to our consumers," said Govind Shrikhande, MD, Shoppers Stop. "The price rise will impact our volumes in the next quarter but the overall consumption story should not get impacted," he said.
India's largest retailer by sales, Pantaloon Retail, too is looking at an increase of about 10-15% for its private label apparel brands like John Miller, Scullers, Indigo Nation besides others. "The increase in input costs has impacted everybody so we have to pass on the costs to our consumers," said Kishore Biyani, founder & CEO, Future Group, which runs retail chains such as Big Bazaar and Pantaloon.Even private brands in the food and consumer products space are not spared from the spiraling inflation, "We are reviewing prices of the FMCG products every quarter due to the cost-inflationary environment," said Devender Chawla, head-private brands, Future Group.