Private label refers to products manufactured by one company but sold under another company's brand, typically a retailer's. Also called store brands or own brands, private label products are common in supermarkets, pharmacies, and discount stores.

Private label allows retailers to offer lower-priced alternatives to national brands while capturing higher margins. Quality has improved significantly, and in many categories private label products are comparable to or preferred over name brands. They increase retailer bargaining power and customer loyalty.

Key points

• Products sold under a retailer's brand
• Often lower priced, higher margin
• Quality has improved
• Increases retailer power and loyalty