Leading fashion retailers’ private brands have seen significant growth in their revenues recently.
For some retailers, especially in apparel category, growth has been in double digits, mainly because of consumers shifting to lower-priced products with inflation squeezing their wallets.
Shoppers Stop saw its highest-ever sales in April-June quarter of FY ’23 as private brands grew 29 per cent, despite the fact that the average selling price for its private brands increased 50 per cent during the quarter.
The company’s volumes for private brands doubled in kidswear during the quarter, followed by womenswear and it expects total volumes to increase ahead of the business volumes.
Going ahead, Venu Nair, Managing Director at Shoppers Stop, said that this is an area where the company will continue to invest and wherein it expects strong growth.
“Some of the new stores that we have opened, the overall private brand mix within apparel is upwards of 30 per cent, so that just gives you an indication of the direction we are going in,” commented Venu.
Similarly, Reliance Retail reported that its own brands’ business saw six times year-on-year (Y-o-Y) growth during April-June period of the ongoing fiscal year and now accounts for 30 per cent of its sales.
For Nykaa, in the beauty and personal care category, gross merchandise value (GMV) of its own brands – roughly 10 brands in the portfolio – was Rs. 166 crore of GMV in April-June of FY ’23. This accounted for 95 per cent Y-o-Y growth of the company.
Similarly, Aditya Birla Fashion and Retail is also expanding its private label portfolio under Pantaloons with new launches, addressing diverse spaces like casualwear and innerwear, owing to the rising demand in the market.