What is Private Brand?
Private brands are products that are controlled and marketed by retailers. Frequently, but not always, these products carry the retailer's own name as the brand. Private brands are also known as corporate brand, store brands, own brand, and retailer brands.
Retailers choose to market Private Brand products for many reasons. Private Brand helps retailers to build closer relationships with consumers, who are reminded of the store each time they use the product. Successful Private Brand programs help to enhance the retailer's image. By marketing high quality, distinctive products under their own brand, retailers can differentiate themselves from their competitors and attract new consumers to their stores.
Private Brand Growth
Today private brands are achieving record shares of store sales and have become an integral part of retailers' marketing strategies. Some of the factors for this growth include:
- Consumer Value - Store brand programs offer high quality products at retail prices that are often 10-30% less than national brand varieties.
- Retailer Profitability - On the average, retailer's profit margins on private brand products are 10% higher than the profit margins on national brands.
- Consumer Confidence - Educated consumers recognize the value of private brand products and are unwilling to pay premium prices for national brand products.