ownbrands

Own brands, also known as private label or store brands, are products developed and sold by a retailer under its own name. Instead of carrying a variety of established manufacturers' brands, retailers create or commission their own products. These products are typically manufactured by a third-party company but are exclusively sold through the retailer's channels. Own brands can encompass a wide range of goods, from food items and household essentials to clothing and electronics.

The primary appeal of own brands to consumers often lies in their price point. They are generally less expensive than comparable national brands, offering a more budget-friendly alternative. Retailers can achieve lower prices by cutting out the marketing and distribution costs associated with national brands and by potentially negotiating better terms with manufacturers. Beyond cost savings, own brands can also offer unique product features or cater to specific customer needs that national brands may not address.

For retailers, own brands represent a significant strategic advantage. They allow for greater control over product quality, pricing, and marketing. Furthermore, own brands can enhance customer loyalty by providing exclusive products that customers can only find at that particular retailer. They also contribute to higher profit margins for the retailer, as they can often secure better wholesale prices than when stocking competitor brands. The development of own brands is a common practice across many retail sectors, from supermarkets and drugstores to large department stores and online marketplaces.