Diffusion of innovation is the process by which an innovative idea or product or practice is communicated to the public. It also states how well it is accepted by the public. The concept of private labels has been significantly increasing in recent years. Even big Indian retail stores are launching their private label brands, and pitching them against well known manufacturer's brands in the shelves of their retail stores. Though the retailer's brands compete with the producer's brands in various factors, their main focus is on price, value for money, customization, etc. The customer perceptions are also bound to change in the current scenario. This study is conducted with the objective of finding out the diffusion of innovation in private labels. The study helps to identify the factors that determine the buying behavior of private labels.

There has been a significant increase in private label brands in recent years particularly in food, home care and other low-end products. Wal-Mart for instance has a 40% private label representation in their stores. Big Indian retail stores are not far behind. Spencer's, Nilgiris, Big Bazaar, Trinethra (now `More'), etc., are also gradually increasing their private label brands and pitching them against well known manufacturer's brands in the shelves of their retail stores. Traditionally private labels were seen as low priced, low quality products. However, with big business groups entering retail and MNCs in retail expanding geographically, the perception that consumers have towards these stores and their private label brands has significantly changed. Even in the area of food products, private labels are gradually evolving from nasty, cheap, copycat substitutes to brands that offer value for money.

While many of the retailers' strategies still center around selling imitations of manufacturers' brands atleast price is not the only competitive advantage. Retailers fight manufacturers' brands on a host of other factors like quality, value for money, customization, etc. Under the present changed circumstances consumer perceptions are bound to change. The factors that weigh heavy in the minds of the consumers while deciding to buy private label products are significant in this context.

Brand Management Journal, Private Labels, Food Products, Retailer's Rrands, Diffusion Process, Adopters, Imitators, Late Adopters, Laggards ,Social System , Interpersonal Communication, Social Participation, Scree-test, Reliability, Hygiene, Brand Switcher.