Private label is a complex industry that involves a host of marketing concepts. Its primary focus is to compete on a price/value basis with nationally advertised brand name products. The product categories are opportunity for private label low-ticket items. These products are often purchased frequently and in mature markets where it is difficult to convince the consumer that products differ. Today, nearly one out of every four products purchased from a U.S. supermarket, drug chain, or mass merchandiser is a private label product. In some product categories the private label market share exceeds 50%.

A recent Gallup poll concluded that 92% of U.S. consumers surveyed bought private label, with the intention of future support. The industry's major dynamic is its complexity of detail, as evidenced by the vast number of stock keeping units ("SKUs"). Product, package, graphic design, and size of orders are more variable in private label than for nationally advertised brands. Moreover, private label manufacturers will likely be required to produce an even greater number of SKUs in the future as more store brands come into existence and to accommodate demand for more product variety. Another developing industry factor is the blurring of the lines of demarcation between the private label and branded manufacturers. Many private label manufacturers have begun to adopt business characteristics of their branded counterparts, including the creation of proprietary brand identities.

Other common classifications within the industry are as follows:

• Generic. A very basic no-name product with no-frills packaging. It is the white label with the black print. This product sells at a discount to the private label product.
  
• Store Brand. A brand that carries the retail store's name. The consumer's perception of the store brand usually reflects the perception of the store itself.
  
• Control Label/Value Brand. Control labels can be owned either by the retailer or the private label manufacturer, but the consumer is frequently unaware that the retailer controls the label. These lines are customized in terms of art, graphics, logos, and promotions. Control label is also used to describe a brand developed by a private label manufacturer that distributes among numerous retailers.

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