Private label: category killing

The concept of private label brand is peaking pace in retail industries. If you are in chennai than it is very difficult to find paste of mustard(masala of fish). India's largest retailer future group some year ago introduced this paste called KASUNDI but you can find this paste where there is popularity of fish quisine like-west bengal. Coming to the point that why retailer are keeping this private label as I know there is two reason first is highest profit margin and another is category killing. Mostly retailer are doing this business for popularity of his brand and for higher margin. Big bazar has own brand in apparels like blazor of KNIGHTHOOD. which is very less price with discount it cost 600 only. Private label brand are available in less price with somewhere less quality. Recently I visited star bazar part of Tata enterprises. when I was purchasing FMCG product at ground floor got suprised. Mostly branded product were assorted with private label with same packaging. this is the concept which is called category killing because in same reckthere were all side noodles of maggi but in between there were noodles of star bazar. coming to point of profit margin experts and marketers says in private label there is margin of 25-30 percents which can go upto 40 percents where as in branded products margin is hardly 14-15 percents. the reason is in private label company does not too much expend on advertising on tv and Internet hardly they advertsie in print media and local radio, newspaper etc. private label brand can differntiate retail store from others which is good for any retailers. according to me private label brand will not work in consumer durable. so, at end I would say private label brand can uniqueness for retailers and easy,cheap and convienent for consumers so, there is profit for both. till now as I know star bazar is master in private label branding.