Growth of e-commerce private labels in India 2016-2019, by category

Between 2016 and 2019, private labels in India grew the most in the wellness sector with a growth of 150 percent. It was estimated that private labels will continue growing at a massive pace until 2022, with the wellness sector growing the fastest. The only segment in which the growth of private labels was not expected to increase was the online furniture segment.

 Private labels, own brands, and store brands

There are many names for private labels. Some, like own brands or store brands, are only sold within a single chain or store. But what all private labels have in common is that they are manufactured and sold by the retailer’s name. The making of a brand with an own brand value through extensive marketing and branding is waived for private labels. In India, even large Retail tycoons such as Reliance Industries Limited bet on private labels.

 E-Commerce and the inflow of private labels

  The share of e-commerce in total retail sales is on a rise but still below ten percent. Increasing digital penetration and expanded availability of e-commerce delivery across urban and rural areas indicate a high growth ahead. Private labels have emerged as another growth driver in the Indian online retail market. Especially among grocery e-retailers, private labels contributed to almost half of their retail sales.