Modern retail formats create new marketing strategy

The Economic Times reports that in an interesting turn of events, modern food retail chains such as Spinach, Reliance Fresh, Spencers and Food Bazaar are all in talks with local mom and pop grocers to stock and distribute their in-house brands in the food, home and personal care categories. If kirana stores agree, they will be able to get higher margins on them in comparison to established brands and the retailers get higher volumes. These private labels will be sold either under their current brand names or would be changed to new names. With competition growing between the two formats, kirana stores are wooing customers with multi-pack offerings, larger product categories and new ways to grow the business. Private labels are generally 20-25% cheaper than national brands.