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 ?
Protecting the meatier margins that can be achieved with an own-label brand also requires Donna and Stephen to keep an eagle-eye on raw material costs and price increases.
The Jack's chain - initially of 10-15 stores - aims to compete more effectively at the lower end of the pricing range, and will comprise a mix of rebranded Tesco outlets, new sites, and stores adjacent to existing Tesco shops.In our view, own-label brands of products will be crucial for Jack's success, as Aldi and Lidl thrive on a combination of skilfully marketed own-label brand ranges and affordable prices, rather than simply on cheap products, combined with a lean cost base typically reflected in fewer service personnel.
All three products can be found under the Waitrose own-label brand, and early sales across the range indicate they are already firm favourites.
As a business, those five brand values cover both being an own-label brand and a shopkeeper, and then trust cuts across them all."
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.
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".
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 own-label brand with camomile didn't impress Laura.
Sainsbury's is now selling its own-label brand for under 20p a bottle, just 45p a pint.