PRIVATE LABEL
Private label, also known as store brand or own brand, refers to products manufactured by one company (the manufacturer or producer) but sold under the brand name of another company (the retailer or reseller). In other words, a private label product is created for exclusive sale by a particular retailer, and the manufacturer produces it on behalf of that retailer. This allows the retailer to market and sell the product as if it were its own, distinct brand. Here are some key points about private label products:
- Manufacturing Process: The retailer works with a manufacturer to produce a product according to their specifications. This can involve the retailer’s input on product design, packaging, and branding.
- Branding: Private label products are sold under the retailer’s own brand name, rather than the manufacturer’s brand. This gives the retailer control over the marketing and positioning of the product.
- Exclusivity: Private label products are exclusive to the retailer that commissions them. They are not available under any other brand name or at other retailers.
- Cost Control: One of the primary reasons retailers opt for private label products is cost control. By working directly with manufacturers, retailers can often offer products at a lower cost compared to national or international brands.
- Quality Control: Retailers typically establish quality standards that manufacturers must meet. This allows the retailer to maintain control over the quality and consistency of the products bearing its brand.
- Diverse Product Range: Private label products can cover a wide range of categories, from food and beverages to household goods, personal care items, and more.