Private Label

Private label products or services are manufactured or provided by one company for offer under another company's brand. By the way we can say that is a label unique to a specific retailer.

Especially private label goods and services can be found in a broad area that’s ahy we can say that these kind of labeling can be found the industries like from food to cosmetics to web hosting.

They are often positioned as lower cost alternatives to regional, national or international brands, although recently some private label brands have been positioned as "premium" brands to compete with existing "name" brands.

Private labeling gained prominence during the recession of the late 1980s, when many consumers chose to give up expensive name brand products in an effort to save money, and many retailers began to market store brands in an attempt to increase sales. But when consumer confidence in the economy rebounded in the 1990s, consumer loyalty to name brands did not. Today, private labeling is a widespread business practice among supermarkets, drugstore chains, and mass merchandisers. These retailers sell hundreds of different items under their own brand names, from basic household items and food to specialty items and even clothing.

In the early days private label goods were essentially cheap imitations of the leading brands, even copying the colors and designs of the major competitors' packaging. Even though court rulings have supported right of private labelers to imitate the packaging of leading brands (unless there is documented confusion among consumers), private label retailers have now moved away from imitation and toward attractive packaging of their own design. Some retailers believe that they need eye-catching packaging because they do not do much advertising, and instead rely on consumers taking notice of their offerings as they walk through store aisles. Over time, many consumers began to consider store brands on the same level as national brands as far as quality, performance, and satisfaction

Types of Private Label

 Generic –very