Private label

Swedish grocery store where private label products (under the brands Hemköp and Eldorado, Axfood) are placed along with other brands such as Knorr (Unilever) and Blå band (Campbell Soup).

Private label products or services are typically those manufactured or provided by one company for offer under another company's brand. Private label goods and services are available in a wide range of industries from food to cosmetics to web hosting. They are often positioned as lower cost alternatives to regional, national or international brands, although recently some private label brands have been positioned as "premium" brands to compete with existing "name" brands.

There are different kinds of private labels:
* Store brands - The retailer's name is very evident on the packaging.
* Store sub-brands - Products where the retailer's name is low-key on the packaging.
* Umbrella branding - A generic brand, independent from the name of the retailer.
* Individual brands - A name used in one category, this is only used to promote a "real" discount product line.
* Exclusive brands - Again a name used in one category, but to promote "added value" products within the category.

There has been a significant increase in private label brands in the recent years. In Europe, private label goods now account for about 45% of products sold in supermarkets, compared to 25% in the USA. Wal-Mart, for instance, has a 40% private label representation in their stores.

Historically, private labels were seen as low-priced, low-quality products. In recent years, however, companies have started using private labels to market higher quality items, and many believe high-quality private labels will increase their presence.

The concept has recently been extended to written text. The web is now awash with articles known either as 'Private Label Articles' or 'PLR (private label rights) Articles'. These are bought and sold in large volumes in order to quickly populate websites to attract traffic from search engines. The articles are presented as though created specifically for the site concerned. There is also now software available to automatically generate unique permutations of these articles.

External links

* Private Label Cosmetics
* Private Label Magazine
* Private Label Manufacturers Association
* Private Label Manufacturing Resource Center