What are private labels?

 

Private labels refer to products that are manufactured by one company but sold under a retailer's brand name. These are also known as store brands or house brands. Instead of buying products from well-known national or global brands, consumers are increasingly turning to these private labels, especially in supermarkets, for a cheaper yet reliable alternative. 

For example, grocery chains like Walmart or Tesco have their own private label brands, such as "Great Value" or "Tesco Finest."

The key idea behind private labels is to offer value to cost-conscious consumers without sacrificing quality. As inflation and rising costs drive consumers to seek more affordable options, private labels are gaining popularity because they offer competitive prices compared to branded goods.

This trend shows that private labels are becoming a strong player in the retail space, and they're expected to capture a significant share of grocery sales over the next decade.

Brands will need to differentiate themselves by innovating and offering unique value beyond being just the cheaper option to compete with private labels.