The sourcing of goods is done from dedicated vendors by the retailer and the goods are sold under the retailer’s own brand lowering the cost of sourcing as compared to branded goods and increasing margins for the retailer. With increase in competition and rising pressure on margins, private label or ‘own label branding’ as they are coming to be known due to the aggressive marketing of retailers at par with branded goods, will become a key strategy for players not just as a margin enhancement tool but a key competitive advantage. In India, most of the purchases are “non-branded” and Indian consumers are used to buying unbranded goods. This provides an ideal atmosphere for the acceptance of private label culture. Internationally, private label has been a rising phenomenon, Own-label branding has become much more sophisticated as retailers have moved from creating imitation brands to developing own-label sub-brands that stand as brands in their own right earning customer loyalty. Globally own label brands contribute to 17% of retail sales and are growing at 5% per annum. International retailers like Wal-Mart of USA and Tesco of UK have 40% and 55% own label brands representation in their stores respectively. There is an increasing acceptance of own label brands in India where their penetration is on the rise. Some of the major food and grocery retailers average between 20 and 30 % own label brands penetration with the highest penetration of about 50% today. In clothing and apparel, some retailers have as much as 65% of the sales coming from own label brands. While own label brands are on the rise, it is largely in the areas of groceries, home care and clothing.