What we know about private label brands

The rise of private label brands is a challenge to traditional manufacturers of consumer goods. Almost every consumer product category has both manufacturer brand and private label offerings. Private label branding gives retailers more control over product marketing, price, distribution and sales. Discount retailers such as Aldi and Lidl, which primarily sell private label products only, have, in many developed markets, increased market share in recent years. Further, private label brands are now increasingly positioned as premium products - a segment that had long been dominated by traditional manufacturer brands.

Definition

Private label: Also known as store brands, trade brands or own-label, are not owned by a manufacturer or producer. Instead, they are owned by a retailer or supplier who gets goods made by a contract manufacturer. The products (or services) are sold under the retailer's brand name. Private labels usually have a lower price point than a national or manufacture brand.