Private Labeling

Introduction:
Private labeling is when a retailer sells products under its own brand name, although the products are manufactured by a third party.

Definition:
Private labeling allows a business to market products as its own, even though the production is outsourced. This creates a unique brand identity without the need for its own manufacturing facilities.

How It Works / Examples:
An example is a grocery store brand found alongside national brands in supermarkets. Many ecommerce retailers use private labeling for items like skincare, supplements, or food products.
Learn more on Wikipedia: Private label.

Why It Matters:
This model enables greater control over product quality, pricing, and branding. It’s ideal for new businesses looking to differentiate themselves and build long-term customer loyalty.

Additional Resources:

  • Study successful private label case studies to understand branding and supplier management.

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