Private Label and Manufacturer Brand Coexistence

Abstract

Consumer goods categories consist of many different brands, and quality-wise, these range from economy brands to standard brands and premium brands. These brands either belong to manufacturers/suppliers, or to the retail chains in the form of private label brands. This chapter examines specific issues related to the coexistence of private label and manufacturer brands, focusing on private label portfolio and private label share in relation to manufacturer brands. In this regard, the focus is on retail concentration and its impact on private label performance, and on the strategic dependency between private label and manufacturer brands, as well as on the relevance of power to the coexistence of the two types of brands.