own-label brand

own-label brand

a product which is sold by a RETAILER bearing the retailer's own BRAND NAME. In some cases own-label brands are manufactured by the retailer as part of a vertically integrated manufacturing-retailing operation (Boots the Chemist, for instance, both produces and retails a large number of its own pharmaceutical and cosmetic products). More usually, however, retailers' ‘own labels’ are produced by independent manufacturers on a contract basis. In many cases, these are the very same manufacturers who produce their own (manufacturers’) branded products which sell in competition alongside the retailers' own-label version! The attraction to the manufacturer in producing ‘own labels’ is that they bring in a substantial volume of extra business on a regular basis. On the other hand, however, there is a danger that the own-label versions of the product will reduce the sales of the manufacturers' main branded products, especially as retailers tend to sell their own-label brands at lower prices than they sell the manufacturer's brand. For the retailer, own-label brands may increase unit profit margins and provide extra sales potential by building up store loyalty (for example, Heinz' baked beans can be bought in Tesco, Sainsbury's etc. but Tesco's baked beans can be bought only in Tesco).

‘own-label’ brand

a product that is sold by a RETAILER and that bears the retailer's own BRAND name. In some cases, own-label brands are manufactured by the retailer as part of a vertically integrated manufacturing-retailing operation (Boots the Chemist, for instance, both produces and retails a large number of its own pharmaceutical and cosmetic products). More usually, however, retailers’ own-labels are produced by independent manufacturers on a contract basis. Retailers use own-label brands in order to provide greater control and flexibility over their product/price mix and to build up customer loyalty to their stores, so that customers will tend to frequent the one store rather than ‘shop around’.
References in periodicals archive ?
All three products can be found under the Waitrose own-label brand, and early sales across the range indicate they are already firm favourites.
Europe, another key market for Tesco, has felt the strains of the recession and so the company has rolled out local equivalents to its Discount own-label brand in these European stores.
The use of a printed Edge Tape can improve on-shelf visibility and if required support own-label brand reinforcement without altering the box design.
When the price and packaging were also revealed, own-label brand of orange juice was rated as "very good".
NFU Cymru has welcomed an announcement by Morrisons that it will no longer stock imported lamb from New Zealand and Australia and will instead move to 100% British in its own-label brand Market Deals.
Safeway has redesigned the packaging of its ambient juice range in both Premium and Pure categories to strengthen the appeal of its own-label brand.
The [pounds sterling]100m Asda had pumped into revamping its own-label products had also paid off, Clarke said, claiming it was the fastest-growing own-label brand and ahead of Sainsbury's for the first time.
Sainsbury's is now selling its own-label brand for under 20p a bottle, just 45p a pint.
Scottish indie David Sands has chalked up a 4% increase in full-year sales to [pounds sterling] 41m thanks to its own-label brand David's Kitchen.
Landmark Wholesale said it was already reviewing its 22% abv own-label brand Vodgrad, but added that it wanted to protect the "valuable brand".
Retailers are increasingly seeing packaging as an extension of their own-label brand and recognise that the experience of the consumer is enhanced or detracted by the performance and the feel of a retail-ready pack," said Weedon
99 for a 350g pack, were launched this week under its premium own-label brand Deluxe.