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Private label
Private label products are those manufactured by one company for sale under another
company's brand. Private-label goods are available in a wide range of industries from food to
cosmetics. Private label brands managed solely by a retailer for sale in a specific chain of stores
are called store brands or own brands.

Private label products are sold with no branding; branded goods are marketed via specific
product characteristics.

Private label companies profit by selling manufactured goods to other businesses; brands profit
through their products’ margin revenue.

Private label companies usually sell only to other businesses; brands may sell as a B2B business
or a B2C business.

What Is a Private Brand

A private brand is a product that is exclusively manufactured for a retailer. The retailer will
market the product under its own brand name. Prices for private brands are usually set cheaper
than competing name brands. Consumers often think that private brands are of lower quality,
but that perception is changing.

Common examples of private brands include:

• Grocery products - canned food, frozen food, rice, cereal, sodas, etc.
• Generic medicine and health products - pain relievers, cough syrup, bandages, etc.
• Textiles - towels, washcloths, bed sheets, etc.
• Clothing
• Household supplies - cleaning products, kitchen utensils, dishes, etc.
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FAMOUS PRIVATE LABEL

ESSENTIAL OIL

The insane sales growth of the cosmetics industry has also grown the sales of essential oils.
they are also being utilized in aromatherapy, massages, and other relaxation techniques, due to
their added health benefits.

PHONE ACCESSORIES

With trending private label products such as Pop sockets, car mounts, card wallets, and self-
charging phone cases, it is with little surprise that the mobile phone accessories market is aimed
to reach an astounding $107.3 billion by 2022.

Private labelling these phone accessories isn’t hard and the margins are sky high.
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FOOD SUPPLIMETS

many new products come up in this category every day, but on the upside, the market is just so
big that everyone can make a profit.

STRATEGIES OF PRIVATE LABEL

Lean into permanent change by aligning to the new path of purchase

E-commerce should no longer be an afterthought — it should be forethought. The pandemic

and stay-at-home orders accelerated online shopping. This momentum is bolstering online sales
of private brands, which has been on a steady growth trajectory. In 2019, online sales of private
brands reached $1.7 billion, an 87% year-over-year increase,

Strategize like a national brand

averaging varying marketing strategies designed to drive trial, awareness, and brand loyalty.
Think of social media as your virtual end cap that has the capability to stop shoppers in their
tracks and inspire new purchase behaviour.

Deliver value, not just price

Retailers must heighten their focus on quality, value, and driving engagement to see a
competitive edge for private label products.

Prioritize innovation in product development

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Elevating your private brand programs is more critical than ever. But, when it comes to
developing new products, look beyond your competition and become a leader in innovation.
Build and execute new private brand product strategies based on what your customer wants
and needs, identified through in-depth research.

NATIONAL BRAND

A national brand is the brand of a product that is distributed nationally under a brand name -
owned by a producer or distributor - as opposed to local brands, and to private-label brands
National brands competes with local and private brands. National brands tend to be more
innovative than generic brands, as generic brands mostly just copy the successful national
brands. In comparison, national brands yet tend to be more conservative than local brands, as
their market coverage and well-oiled logistics operations make it difficult for frequent product
innovations to boost profits, relative to the risk.

ie. A national brand is the brand of a product manufactured and spread nationwide using a
brand name and owned by this company.
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NATIONAL BRAND PRIVATE LABEL

➢ A national brand has a name that ➢ In a typical supermarket,
typical customers recognize and these national brands often
trust. Ben & Jerry's and Breyers appear in the freezer section
are two prominent national near private label brands.
brands of ice cream.
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➢ National brands typically cost more ➢ Private label brands are less
to promote, and their price points are recognized and sometimes
typically higher as well. considered generic or of
poorer quality.

➢ However, private label

brands usually have a lower
cost-basis, affording retailers
higher profit margins.
During tough economic periods,
consumers become more interested in
lower-cost private label brands.