A private label, also called a private brand or private-label brand, is a brand owned by a company that directly sells the product,[1][2] but outsources the manufacturing to a third-party. That is, company A makes a product for company B, which company B then offers under their brand name.[3][4][5] Among the best-known private-label brands are store brands, brands owned by and sold exclusively at a particular retailer, such as a supermarket or grocery store chain. Examples are Simple Truth by Kroger and Great Value by Wal-Mart. Store brands compete with national brands. Private-label producers are usually anonymous, sometimes by contract. In other cases, they are allowed to mention their role publicly.
A private-label is similar to but distinct from a white-label product. A private-label product is made by the manufacturer under contract exclusively for the client, who sets the product specifications, while a white-label product is specified by the manufacturer, who may make the same product tor multiple clients, and each retail client merely applies their brand.[6][7][8][9]
Store brands
In the supermarket and grocery store industry, a store brand is also called a house brand[11] or own brand,[12] is almost always offered exclusively at the chain store that owns it; in rare instances, however, the brand is licensed to another company.[13]
Examples of store brands are Simple Truth by Kroger, Great Value by Walmart, Clover Valley by Dollar General, Market Pantry by Target, and Specially Selected by Aldi
In finance
A private-label credit card (PLCC) is a type of credit card that can only be used at a specific company or chain of companies. Since this is virtually always a retail business, they are also called store cards.[47][48] The retailer partners with a bank that issues the cards, funds the credit, and collects payments from customers. The cards themselves are branded with the logo of the store, but not the bank.[49] Examples are the Target Circle Card (formerly Target RedCard) (issued by TD Bank, N.A.),[50] the Walmart Reward Card (issued by Capital One),[51]
See also
- Contract packager
- Ghost developer
- Ghost writer
- List of Amazon brands
- List of Target brands
- List of Walmart brands
- Rebadging
External links
References
- Marshall Hargrave. How Private Brands Matter Investopedia^
- {{Harvp|Fitzell|1982|p=9}}: "Any time a product is packaged under a label owned by a retailer, it can be called private label."^
- Stella Morrison. How Private Labeling Works business.com^