Private Label

Distribution of a manufacturer's product, under the distributor's brand. They are usually lower in price but have the same or similar quality to the leading brand.

From a marketing perspective, we can speak of a strategy aimed at offering products with higher margins for the distributor and more affordable prices for the consumer. In many cases, this boils down to "good quality at a low cost." Usually, these private labels share shelf space with well-known brand products, leading users to compare between the two.

But... how do private labels work? First, the retailer identifies a high-demand product and contacts one or several manufacturers to produce that item. The manufacturer will produce the product according to the retailer's specifications, and the private label product's label must indicate who its manufacturer is.