A private-label brand is when a manufacturer produces a product, but a separate retailer or business brands, markets, and sells the product.
The private-label brand model involves significant coordination and collaboration between a manufacturer and a retailer. In this model, the manufacturer creates the product, and then hands it off to the retailer, who applies their own branding to the product before marketing and selling it.
Grocery stores, supermarket chains, and convenience stores often use private-label branding to build brand engagement.
A private-label brand offers retailers several benefits, including:
Additionally, this model enables retailers to act on customer feedback as it comes in. By collecting consumer purchasing data and surveying consumers about their experience with a product, the retailer can understand what’s working and what’s not. And because they control all aspects of branding and marketing for that product, they can more easily make adjustments.