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What Is a Private Label?

Commerce Glossary > Private Label

Private Label Definition | TLDR

Private label refers to products manufactured by one company (the manufacturer or supplier) and sold under the brand name of another company (the retailer or distributor), allowing retailers to offer exclusive or customized products under their own brand identity.

Private Label Meaning

A private label, also known as a store brand or own brand, refers to a product manufactured by one company but sold under the brand name of another company, typically a retailer or distributor. In essence, private label products are created to be exclusive to a particular retailer, allowing them to offer unique products that differentiate them from competitors. These products are often developed to meet specific quality standards, price points, or target demographics set by the retailer, providing consumers with alternatives to national or name-brand products.

What Are the 4 Types of Private Labels?

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A private label, also known as a store brand or own brand, refers to a product manufactured by one company but sold under the brand name of another company, typically a retailer or distributor. In essence, private label products are created to be exclusive to a particular retailer, allowing them to offer unique products that differentiate them from competitors. These products are often developed to meet specific quality standards, price points, or target demographics set by the retailer, providing consumers with alternatives to national or name-brand products.

Private label strategies vary among retailers, with some offering basic, value-oriented products, while others focus on premium or specialty items. Private label products may also undergo rigorous testing and quality control processes to ensure they meet or exceed industry standards and customer expectations. As consumer preferences evolve and demand for customization grows, private label offerings are becoming increasingly popular, contributing to the diversification and competitiveness of the retail landscape.

FAQs

Not always. While private label products are often priced lower than name-brand equivalents, pricing can vary depending on factors such as product category, quality, and retailer strategy. Some premium or exclusive private label products may command higher price points due to their perceived value or unique attributes. Consumers should compare prices and consider factors beyond price alone when evaluating private label offerings.

It depends. Private label products may include both year-round staples and seasonal offerings. While some private label products, such as basic household items or pantry staples, are available year-round, others may be seasonal or limited-time offerings tied to specific occasions or trends. Retailers often adjust their private label product offerings to align with seasonal demand and consumer preferences.

One example of a private label brand is AmazonBasics, a line of affordable, everyday products developed and sold exclusively by Amazon. AmazonBasics offers a wide range of items across various categories, including electronics, home accessories, office supplies, and kitchen essentials.

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