Consumer Perception of Private Label Brand in Apparel Retail Industry

Abstract

Private label brands have made tremendous inroads over the past two decades. Although the success of private labels has been limited to certain product categories and segments of consumers, retailers continue to expand the domain of private label offerings. Private label brands, also known as store brands, refer to those brands that are owned by, and sold through, a specific chain of stores. These products are typically manufactured by a third party (contract manufacturer) under license. The market share for store brands across different food categories have increased in all Western countries within the last decade and retailers have a number of incentives to create store brand programs In fact, the margins on private brands are substantial. Higher sales of higher margin private label brands increase profits and may enable retailers to face competition.