A Study on Business Strategy Model for Private Label Brands in the Digital Era

Abstract

Modern Retail – Private label brands are reshaping the retail landscape in an era of digital transformation. This study provides a complete analysis of private label brand strategies in the digital era by looking into how they have evolved, what consumers believe about them, and how they affect retailer performance. This research aims to construct a conceptual framework for the effective management of private label products in the digital era that combines digital capabilities as well as consumer, product, and retailer factors. Quantitative surveys (n=384), qualitative interviews, and focus groups were used. This paper uses structural equation modelling to test hypothesized relationships. Indeed, results highlight a very significant positive relationship between perceived quality and private label purchase intention (r of 0.721, p < 0.001). The researcher's intuitive inference that introducing premium private labels would positively affect retailer profitability was verified (β = 0.287, p < 0.001). Results show that digital marketing capabilities positively moderated the relationship between perceived quality and purchase intention (β = 0.143, p = 0.003). Retailers must upgrade the quality and effectively deliver their message across all channels. The success of premium private labels opens up opportunities for portfolio expansion, and the significant moderating effect of digital capabilities indicates that investment in digital marketing capabilities is needed on a sustained basis. First, this study extends the literature by presenting an integrated framework of private label management in the digital era to underline the interaction between traditional retail strategies and emerging digital capabilities.