Private Branding

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Private Branding

The practice in which a manufacturer sells large quantities of its inventory to a retailer, who then puts its own brand name on the inventory for resale. Private branding guarantees the manufacturer a certain level of sales. It also increases the retailer's profit margins because it generally may purchase from the manufacturer at a lower price.
References in periodicals archive ?
Tops' private label team consists of 10 people, including Dave Damrath, director of marketing for private brands, and Nicky Walsh, director of business development for Daymon, a private brand development group.
Consequently, private brand unit share dipped to 17.
Private brands enable retailers to move faster, to stay relevant to the consumer.
Rupani: From an organizational standpoint, we see far more success from retailers with fully-dedicated private brand teams that apply strategic focus to customer targets, brand portfolio, new product development and brand communication than we do with retailers who merely supplement their efforts with traditional merchandising teams.
The new products are slightly more expensive than Daiei's previous private brand items: a 250-gram package of the frozen vegetables sells for [yen] 178 to [yen] 188, while a one-liter container of the milk is priced at [yen] 225.
Additionally, two new concepts, not previously linked to private brand proneness (extrinsic cue reliance and intolerance of ambiguity) are integrated into the model.
SUPERVALU's goal in creating a new private brand beer is to provide customers a fair, low price option with the same great taste as leading national brands," said Trent McKinster, director of beer for SUPERVALU.
The private brand strategy needs to align with and support the retailer's corporate mission.
In the past year, 94% of Sam's Club members have purchased at least one private label item, Brewer said, and private brand penetration rose 100 basis points in a short period of time.
In fact, many of the chain's private brand lines are significantly larger than national brands.