National brands manufacturers as producers of private labels: rivals or enlightened partners?

In the present scenario Private labels (PLs) are growing globally due to many factors and it makes unfavourable impact on National brand market share. Certainly retailers do not open factories for production rather than searching for dedicated suppliers or national branded manufacturers for production of their required items as they are not in actual production. This study examined why national brand manufacturers produce private labels. We analyzed various influencing factors & opportunities of national brand manufacturers about their decision with reference to produce private labels. This investigation was undertaken by using semi-structured interviews with private label suppliers and retail consultants. The findings, which reflect observed practice, are interpreted through theoretical propositions related to earlier studies, managerial implications are provided. The results may help managers to identify key variables that affect the profitability of producing private labels. It will also enhance the present situation of this subject area and serve as the basis for further studies.