Private Label, also known as “White Label” and “Private Brand,” refers to goods produced by one company/manufacturer but packaged and sold under another company’s name. Almost all types of goods can be distributed under private labels, but the strongest categories include:
- frozen, shelf-stable, and fresh food;
- pet food/care products;
- household items;
- non-alcoholic drinks;
- personal care products and cosmetics;
The term “private label branding” refers to the marketing techniques used to differentiate a private label product in the marketplace.
The main advantage of private labeling is that it enables companies to customize goods (quality, ingredients, materials, design) without investing a great deal in product development. Other advantages include more control over pricing and branding, quicker response to market trends, and higher customer loyalty. The main disadvantages are competing with established names and dependence on the manufacturer.