Private Label
Resources » Private Label Overview

A recent Gallup poll concluded that 92% of U.S. consumers surveyed bought private label, with the intention of future support.

The private label industry 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, while providing brand characteristics for our retailers. 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%.

Industry Classifications

Other common classifications within the industry are as follows:

  • Generic: Is a very basic no-name product with no-frills packaging. It is the white label with the black print. Very few generic products remain in the United States market.
  • Store Brand. The retailer creates and owns this brand name. Sometimes the brand will carry the retailers name, other times it will be a name different than that of the store..
  • Control Label/Value Brand. Control labels are customized in terms of art, graphics, logos, and promotions. Control labels are also used to describe a brand developed by a private label manufacturer that is sold to numerous retailers who do not have their own store brand

 

 

 

 

Other Resources:

History of Private Label

The store brand revolution began in Europe and Canada where retail chains were more consolidated than in the U.S., and consumers do not demand as broad a range of choice. For example: Boots, the leading drug chain in the United Kingdom with revenues of $6.0 billion, began to emphasize store brands in the early 1970’s.

Products marketed under the Boots label now account for almost 50% of total sales. The UK department store chain, Marks & Spencer, sells only private label goods under its own store label. England's largest food chain, Sainsbury, has its own label which is considered the premium product and accounts for over half of total revenues. It is currently estimated that one-half of all UK food store sales are now generated by private label products versus 22% in the United States

Take a Look at the History of Vi-Jon