Online retailers in India are steadily building their private labels, a push that will help them improve profitability at a time when the focus for the country’s top online players has moved to improving their bottom line. Findings of a report released by KPMG in India and Retailers Association of India on Wednesday estimated that between 2019-22, online private labels are expected to grow 1.3 to 1.6 times faster than the growth of e-commerce platforms and will continue to generate 1.8 to 2 times higher margins than external brands sold by these online retailers.
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The growth of online private labels will help online retailers attract repeat shoppers, improve margins, and valuations, the report said.
Moreover, private labels are also instrumental in launching goods that fill gaps in the platform’s product portfolio.