Private branding is the design, development and production of an exclusive line of products and the subsequent process of marketing and promotion. Offering exclusive products is an opportunity for a sustainable competitive advantage. Long-term profitability and success results when such products are effective branded to attract customer interest. Private label branding has become more commonplace relative to national brands in the early 21st century, according to the website BrandChannel.
Discount retail giant has effectively marketed a large portfolio of products under its "Great Value" brand. Using a similar formula to its store branding, the company has developed over 100 product categories and created efficient operations, distribution and retail processes to deliver value-oriented pricing to its customers. A May 2012 "Branding Strategy Insider" article suggested that Walmart customers have become so in tune with "Great Value," that they have an impression of the brand that is competitive to national brands, even with its low-cost emphasis.
Publix is a popular supermarket grocer in the southeastern United States. The company has used a combination of award-winning packaging and quality products at affordable prices to generate brand loyalty from local consumers. Pancake batter, syrup, butter and granola snacks are a few of the more successful products under the Publix brand. In this instance, the private label brand actually plays off the popularity of the company brand.
An October 2012 Forbes.com article highlighted another trend in private label branding in the fashion and home furnishings industries. Value-oriented discount retailer Target and fashion and home furnishings retailer Neiman Marcus collaborated on a shared line of clothes and furnishings that each store would market and sell. These types of collaborations are aimed at allowing traditional retailers to offer competitive, valuable fashion products to compete with the rise of online giant Amazon.com.
Wholesale outlets like Costco have used private label branding to achieve higher profit margins on low price offerings. Costco has branded a number of products under its Kirkland Signature name. The company emphasizes that it won't put its name on a product unless it is equal or better quality in combination with lower cost production. This clearly emphasizes the nature of private label branding which is to stress better value for customers, but strong bottom line benefits for the business. These types of private label products offset a number of national brands which provide little to no profit margin for resellers.