{"id":5572,"date":"2019-05-25T08:45:00","date_gmt":"2019-05-25T08:45:00","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=5572"},"modified":"2022-11-11T09:01:27","modified_gmt":"2022-11-11T09:01:27","slug":"online-grocery-players-bigbasket-grofers-betting-big-on-private-labels","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/online-grocery-players-bigbasket-grofers-betting-big-on-private-labels\/","title":{"rendered":"Online grocery players BigBasket, Grofers betting big on private labels"},"content":{"rendered":"\n<p>While BigBasket expects to increase its revenue from the private brands to 45 percent this year, Grofers is aiming to increase the revenue share from private labels to 60 percent by the end of this year.<\/p>\n\n<p>Written By Varun Jain<\/p>\n\n<div class=\"row\"><div class=\"col-sm-6\">\n<img decoding=\"async\" class=\"img-fluid\" style=\"width:100%;max-height:100%\" src=\"https:\/\/etimg.etb2bimg.com\/photo\/69482318.cms\" data-src=\"https:\/\/etimg.etb2bimg.com\/photo\/69482318.cms\" captionrendered=\"1\" alt=\"Online grocery players BigBasket, Grofers betting big on private labels\" data-init-src=\"https:\/\/st.etb2bimg.com\/Themes\/Release\/images\/responsive\/etretail-default.jpg\">\n<\/div>\n<div class=\"col-sm-6\">\n<p>New Delhi: Online <a href=\"https:\/\/retail.economictimes.indiatimes.com\/news\/food-entertainment\/grocery\">grocery<\/a> players <a class=\"news-keywords\" href=\"https:\/\/retail.economictimes.indiatimes.com\/tag\/bigbasket\">BigBasket<\/a> and <a class=\"news-keywords\" href=\"https:\/\/retail.economictimes.indiatimes.com\/tag\/grofers\">Grofers<\/a> are betting big on private label brands as it has become one of the largest source of <a class=\"news-keywords\" href=\"https:\/\/retail.economictimes.indiatimes.com\/tag\/revenue\">revenue<\/a> for these companies. BigBasket and Grofers currently witness 40 percent and 35 percent of their overall revenues coming from their own brands respectively.<br><br>While BigBasket expects to increase its revenue from the private brands to 45 percent this year, Grofers is aiming to increase the revenue share from private labels to 60 percent by the end of this year.<\/p>\n<\/div><\/div>\n<p>&#8220;Private labels or as we call them \u2018G-Brands\u2019 at Grofers, contributed to almost 35 percent of our revenue last year. At present, almost half of our sales are from our own brands&#8217; offerings and we plan to take this number to 60 percent by the end of this year,&#8221; said Saurabh Kumar, founder of Grofers.<br><br><div data-bucket-limit=\"1\" data-bucket-id=\"2\" data-bucket-design=\"3\" data-bucket-position=\"in_page\" class=\"in-page-promotions-buckets-featured featured_section_disabled bucket-position-in_page inpromorendered item-inviewport\" data-type=\"in-page-promotions\" id=\"in-page-promotions_in_page_1_69477757\" data-ftd-params=\"design=3&amp;limit=1&amp;entity_type=all&amp;position=in_page&amp;bucket_id=2&amp;rendered_items=0&amp;rendered_items=0\" data-ftd-type=\"in-page-promotions\" data-ftd-callback=\"inPagePromoCallback\"><a data-ga=\"in_page_promotions,in-page-promotions_in_page_1_69477757,microsite-1323\" href=\"https:\/\/retail.economictimes.indiatimes.com\/business-leadership-summit?ag=InPagePromo_retail&amp;utm_source=b2bInPagePromotions&amp;utm_medium=in_page\" target=\"_blank\" data-disable-ga-impression=\"1\" rel=\"noopener\">ETRetail Business Leadership Summit<\/a><\/h2><div class=\"metaTx \"><span>29 November 2022<span class=\"separator separator-atrate\"> @ <\/span>09:00 AM<span class=\"separator separator-slash\"> | <\/span>Sahara Star Hotel, Mumbai<\/span> <\/div><\/div><p class=\"promo-desc \">Sahara Star Hotel, Mumbai<\/p><div class=\"slide-container hide\"><ul class=\"feature-promo-big-authors lst-box2 news-listing clearfix margtop15 marglf10\"><\/ul><a data-ga=\"in_page_promotions,in-page-promotions_in_page_1_69477757,microsite-1323\" href=\"https:\/\/retail.economictimes.indiatimes.com\/business-leadership-summit?ag=InPagePromo_retail&amp;utm_source=b2bInPagePromotions&amp;utm_medium=in_page\" target=\"_blank\" class=\"btn-promo\" data-disable-ga-impression=\"1\" rel=\"noopener\">Register Now <i class=\"fa fa-angle-right\"><\/i><\/a><span class=\"discnt-txt   \">Join the 3rd Edition of Business Leadership Summit 2022<\/span><\/p>\n<p>\nThe e-retailer is also looking to aggressively increase the offerings and assortments of their private brands.<br>&#8220;There are over 800 products spread across various categories such as staples and kitchen ingredients, FMCG products, personal hygiene products like soaps, shower gels, face wash, hand wash, hand sanitizer, etc, personal care products like moisturiser and deodorants, home needs like cleaning products and furnishing items, food products and snack items, baby products and a lot more under these 8 brands. We plan to increase it to 1200 products by the end of 2020,&#8221; said Kumar.<br><br>The demand for private label brands is on a rise as consumers are seeing the value of getting the same quality product as a national brand at least 40-50 percent lesser cost, feels Kumar.<br><br>Out of 600 categories that BigBasket has on its platform, the company has private label brands in around 150 categories, according to Seshu Kumar Tirumala, national head, buying and merchandising at BigBasket.<br><br>&#8220;Every month we launch private brands in around 6-7 categories. We keep exploring when and which category we need to launch private brands. There is still a huge gap and we need to address it,&#8221; said Tirumala.<br><br><br><br>Tirumala also said around 90 percent of the agricultural commodity like rice and dal available at BigBasket is their own private brand while 100 percent of the fresh produce like fruits, vegetables, and meats are private labels.<br><br><div data-bucket-limit=\"2\" data-bucket-id=\"3\" data-bucket-design=\"3\" data-bucket-position=\"in_page\" class=\"in-page-promotions-buckets-featured featured_section_disabled  bucket-position-in_page\" data-type=\"in-page-promotions\" id=\"in-page-promotions_in_page_2_69477757\" data-ftd-params=\"design=3&amp;limit=2&amp;entity_type=all&amp;position=in_page&amp;bucket_id=3&amp;rendered_items=0&amp;rendered_items=0\" data-ftd-type=\"in-page-promotions\" data-ftd-callback=\"inPagePromoCallback\"><div class=\"in-page-promotions-buckets  hide\"><\/div><\/div>According to Pinakiranjan Mishra, Partner and National leader, Consumer Products and Retail at EY, private brands are a good strategy for online and offline retailers provided they offer value to consumers beyond just price. This means that they should have equivalent quality, new product introductions, etc, he said. <br><br>&#8220;However retailers often underestimate the cost of private brand development,&#8221; Mishra noted further.<br>According to industry experts, while private label brands help in building the stickiness to the customers, it also gives the retailer control over the quality and supply chain of the product apart from ensuring better gross margins.<br><br>&#8220;Private labels can fulfill one or more objectives. They have the potential to deliver better gross margins, a critical element in the thin-margin <a class=\"news-keywords\" href=\"https:\/\/retail.economictimes.indiatimes.com\/tag\/grocery\">grocery<\/a> business. Retailers can address specific need gaps for their customers that are not addressed by established brands. Thirdly, retailers can pitch private label at opening price points in a category, to entice consumers.<br><br>Private labels are usually, but not always, cheaper than comparable products from established brands,&#8221; said Devangshu Dutta, chief executive of a retail consultancy firm, Third Eyesight.<br><br>In the offline grocery space, one in every five products sold at the country\u2019s biggest hypermarket chain Big Bazaar is owned by Future Consumer, a sister concern of the Kishore Biyani led Future Group.<br><br>&#8220;While we have challenged companies, especially MNCs, the customer decides to buy products or brands at our stores eventually,\u201d Biyani, founder of Future Group told ET earlier. \u201cThere was a void in several categories since FMCG companies were not strong or didn\u2019t invest in building them. FCL brands have filled that gap, and our aim is to have 70% share at our stores by 2022,\u201d he had told ET. <br><br>ET had earlier this month reported that fashion e-commerce player Voonik has decided to move to fully private label business after struggling to survive independently and scaling down and downsizing staff significantly.<br><br>\u201cWe always had the plan to increase our private labels, we are now expediting it,\u201d said Sujayath Ali, co-founder of Voonik to ET earlier. He said the company would move to a completely private label-led business in the next 3-6 months.<br><br><\/p>\n\n\n<p>Source: <a href=\"https:\/\/retail.economictimes.indiatimes.com\/news\/food-entertainment\/grocery\/online-grocery-players-bigbasket-grofers-betting-big-on-private-labels\/69477757\" target=\"_blank\" rel=\"noopener\">retail<\/a><\/p>\n\n\n\n","protected":false},"excerpt":{"rendered":"<p>While BigBasket expects to increase its revenue from the private brands to 45 percent this year, Grofers is aiming to increase the revenue share from private labels to 60 percent by the end of this year. Written By Varun Jain New Delhi: Online grocery players BigBasket and Grofers are betting big on private label brands [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-5572","post","type-post","status-publish","format-standard","hentry","category-press-quotes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Online grocery players BigBasket, Grofers betting big on private labels - Third Eyesight<\/title>\n<meta name=\"robots\" content=\"index,follow\" \/>\n<link rel=\"canonical\" href=\"https:\/\/myechoproject.com\/TES\/online-grocery-players-bigbasket-grofers-betting-big-on-private-labels\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Online grocery players BigBasket, Grofers betting big on private labels - Third Eyesight\" \/>\n<meta property=\"og:description\" content=\"While BigBasket expects to increase its revenue from the private brands to 45 percent this year, Grofers is aiming to increase the revenue share from private labels to 60 percent by the end of this year. 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