Listen now and subscribe: Apple Podcasts | Google Podcasts | Spotify | Stitcher | RSS Feed | Omny Studio Kirkland Signature. Two-Buck Chuck. Simple Truth. Cat & Jack. Great Value. Amazon Basics. Store brands have never been more popular.
Although store brands ostensibly compete with manufacturers' national brands, manufacturers often have excess capacity on their production lines. To generate additional profit, some will use that extra capacity to make private labels. Georgia-Pacific, the maker of Brawny and Dixie, also produces store brands. So does Henkel, the manufacturer of Purex and Dial.Listen now and subscribe: Apple Podcasts | Google Podcasts | Spotify | Stitcher | RSS Feed | Omny Studio Eight O'Clock Coffee and KenmoreStore labels have been around since the early days of retail and the emergence of consumer brands in the 19th century.
Shopper loyalty Retailers make private label brands for a variety of reasons, including to boost profitability and sometimes as a negotiating tool against brands. Today, stores' private brand operations are more sophisticated than ever and a much bigger focus for chains. Retailers have been sued for creating products that too closely resemble national brands. The owner of golf ball-brand Titleist sued Costco for patent infringement, while Williams-Sonoma sued Amazon for selling"knockoffs" under its own brand. Both cases were settled.
"You don't start with the most difficult things," Steenkamp said."As stores build more experience and success, then they enter new categories."Product recalls are often the most revealing way to find out which brand manufacturers are behind specific private labels.
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