For the consumer, store brands represent choice and the opportunity to regularly purchase quality food, beverage and non-food products at considerable savings compared to buying national brands, without relying on coupons or promotional pricing. Moreover, store brands are made of the same or comparable ingredients as the national brands and because the store’s name or symbol is on the package, the consumer is assured that the product is manufactured to the store’s quality standards and specifications.
Retailers use store brands to increase business as well as to win the loyalty of their customers. Whether a store brand carries the retailer’s own name or is part of a wholesaler’s private-label program, store brands give retailers a way to differentiate themselves from the competition. Store brands enhance the retailer’s image and strengthen its relationship with consumers. Retailers know that consumers can buy a national brand anywhere, but they can only buy their store brand at their stores. A private-label brand is unique and cannot be purchased anywhere else. Many companies today are looking at Private Label as a viable and lucrative secondary growth area for their business.