What are private brands?

Sometimes they are referred to as House Brands , private brands are products that are owned by a retailer instead of the entity that produces the product. The concept of private brand is not new and is used in many different industries. Most people are used to seeing private or warehouse signs displayed next to national brands on the shelves of supermarkets, pharmacies and many other retail chains.

The concept of private brands has existed for many decades. Already in the middle of the 19th century, there was evidence that the first main department stores that close with suppliers to indicate private goods that were sold on the shelves. The trend has continued to this day, some of which sometimes attract customers based on the quality of their brands or shops as well as the selection of national brands.

retailers who are launching private brands benefit from the activity in several ways. Jedle, no need to be foundedVAT production facilities to produce offered goods or services. The retailer does not have to hire other employees, deal with the acquisition of raw materials, or provide storage space for finished goods until it is sold to the customer. Because someone else is engaged in details of this type, the director for the retailer is significantly lower than if the company tried to produce the goods itself.

Another advantage of using private brands is that the retailer does not have to sink a lot of time and money to research and develop new product lines. Manufacturers who produce goods and ensure private labeling are involved in this type of activity, and then offer the retailer the opportunity to the private brand of all new products or services that the supplier decides to the market. A retailer is often made of field test results and the identification of a specialized market where it is likelythat good or service will be interested and can determine whether they want to go after this particular market sector.

For manufacturers, private brands also provide additional outlet for distributing their products or services. By producing the same goods as for their distribution of the national brand and their designation by private brands for different clients, the production volume is often higher than it would be otherwise. In the long run, this is reflected in a net profit for the manufacturer and helps the company remain stable even in difficult economic times.

While many people automatically think about the supermarket products when they hear about a private brand, the fact is that many different industries commonly use private brands. Sellers of electronic equipment, telecommunications services, drugs and even clothing often close the sale of Under products their own private brand.