Published by MBA Skool Team, Last Updated: October 08, 2014
What is Private Label?
Private labels also called private brands are brands owned by retailers who get the product to be sold under that brand manufactured by contract manufacturers.
It helps the retailer in a way that it does not require them to invest huge capital in manufacturing facility. It also provides contract manufacturers a stable source of demand.
The private label products are comparatively low in price than popular brands because of the above benefits and are placed in the retail stores among normal brands to increase their brand value.
Since retailers often get high margin on the private label they try to push it more by giving offers on these products and strategically placing the private label products near the high selling popular brands.
Myntra has their private brand called Roadster that they aggressively promote on their website.
Vishal Mega Mart has its own brand for many edible products like Tomato Sauce, Jams etc. and gives attractive offers like buy 1 get 1 etc. on them.
Example, Flipkart has its own private label for tablet, ebook reader called Digiflip.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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