What Is a Private Label?
Private label refers to products manufactured or produced by one company (the retailer or reseller) and sold under the retailer’s own brand name rather than the manufacturer’s brand name. Private label products are those that a retailer gets produced by a third party but sells under its own brand name. The retailer controls everything about the product or products, including the product’s specs and how it’s packaged.
How is the Private Label Useful?
Private label branding allows retailers to differentiate their products, control pricing and distribution, and build customer loyalty and brand equity through unique value propositions and positioning strategies tailored to target market segments and consumer preferences. By developing private label brands, retailers can offer exclusive products, expand product assortments, and enhance their competitive advantage in the marketplace while achieving higher profit margins and customer retention.
Private Label In Academia
In academia, private label branding is studied within the fields of retail management, brand strategy, and consumer behavior. Researchers investigate the definition and characteristics of private label brands, including quality, price positioning, and brand equity, to understand their role in retailing and consumer preferences. Academic studies on private label branding also explore marketing strategies, such as product differentiation, packaging design, and promotional campaigns, to increase brand awareness, perceived value, and purchase intent among consumers, as well as challenges and opportunities in private label management, supplier relationships, and brand positioning in dynamic and competitive retail environments.
Also, learn about Product Feed.
A product feed or product data feed is a file made up of a list of products and attributes of those products organized so that each product can be displayed, advertised or compared in a unique way. A product feed typically contains a product image, title, product identifier, marketing copy, and product attributes. But, it can also contain links to rich media assets such as videos, 3D animations, brochures, product stories, product relations, and reviews, as in the case of Open Icecat, the multilingual open content catalogue.
Explore other related terms only on Rubick.ai.
Frequently Asked Questions On Private Label
How does a private label work?
Private label products are those that a retailer gets produced by a third party but sells under its own brand name. The retailer controls everything about the product or products, including the product’s specs and how it’s packaged.
What is the objective of the private label?
The major aim for most private label brands is to sell at a low price to a large customer base and leverage on marginal profit. The private label business allows them to control the level of overhead manufacturing costs that they incur. It also helps them decide on their profit margin as they set the price point.
Why is private labels important?
Retailers handling private label products can create customized experiences matching customer needs and preferences. This customization helps retailers boost customer loyalty and sales. For instance, custom packaging with the retailer’s branding or messaging creates a unique and memorable customer shopping experience.