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.