Store brand

Store brand refers to a product that is manufactured or provided by one company for offer under another company's brand. Also known as private label or private brand, these products are available in a wide range of industries from food to cosmetics. Store brands are generally cheaper than national brands, which is a key factor in their popularity.

History

The concept of the store brand, or private label, has its roots in the early 20th century, when grocery stores began selling items under their own names. The trend gained momentum in the 1970s and 1980s as retailers like Sears and Kmart began selling their own branded products. Today, store brands account for about 18% of all retail sales in the United States.

Types of Store Brands

There are three main types of store brands: premium, value, and generic.

• Premium store brands are high-quality products that are comparable to, or even superior to, national brands. They are often priced lower than national brands, offering consumers a high-value alternative.
• Value store brands are priced lower than national brands and are often of similar quality. They are designed to compete directly with national brands.
• Generic store brands are the least expensive option. They often have plain, basic packaging and are typically lower in quality than national brands.

Advantages and Disadvantages

Store brands have several advantages over national brands. They are typically cheaper, which can make them more appealing to budget-conscious consumers. They also give retailers more control over product pricing, marketing, and distribution.

However, store brands also have some disadvantages. They may not have the same level of consumer trust as national brands, and they may not be as widely available. Additionally, the quality of store brands can vary widely.

See Also

• Brand
• Private label
• Generic brand
• White-label product
• Retail