Abstract:
Private label brand is a relatively new concept in retail industry. Traditional
retailers are usually only taking control the supply chain from distributors or
producers to the customers. When they are getting bigger, they start thinking to
take more profit by having their own products. In western countries, where private
label were started, the market share of private label products is nearly one-third of
total products sold, even in Switzerland, it can reach up to almost a half of total
products sold. While in Asia countries, private label brand’s growth is very slow,
which only less than 5% and even worse, in Indonesia are only less than 1%. A
survey was conducted in three Griya supermarket outlets in Bandung to find out
the factors that influence consumer perception toward private label. As every area
in Indonesia has different culture and interest, the survey is held only in a specific
retailer and specific area, which is Griya Supermarket in Bandung, West Java.
Thus, we can get a more concrete result. The result can help retailers to adjust
their private label strategies in order to increase the market share. According to
the result of the survey, there are two factors that influence customer’s attitude
toward private label; they are products attributes, which include quality and
packaging, and retailer’s image, which include services provided by retailer.
