So what are store brands?
For the few months this blog has been up we’ve realized some of our readers aren’t familiar with some terms we are using. First, what are 'store brands'?
Store brands are brands that are owned by the retailer. Don’t mistake ‘owning the brand’ for making the product, though!
Here are some examples:
How are store brands made? The Private Label Manufacturer Association notes that there are a few ways store brands are made are:
- Large national brand manufactures that have extra capacity
- Manufacturers that specialize in a particular category but do not have branding/marketing expertise
Retailers like store brands becuase they get a higher margin on these products. They can get a higher margin, and private labels cost less, becuase there is typically little to no spend on advertising and marketing.
COMING UP: We’ve just completed a review of sunscreens and their store brand copycats at Walmart, Target, and CVS. Expect it to be on the blog this week!