Private Label / Own Label
Private label (also called own-label or store brand) refers to products manufactured by a supplier but sold under the retailer's brand name (e.g., Tesco Finest, Sainsbury's Taste the Difference, Aldi Simply Nature). Private label typically competes directly with manufacturer brands at lower price points.
Private label penetration in UK grocery has grown significantly, particularly in discounters (Aldi, Lidl). For branded FMCG manufacturers, private label is both a commercial threat (competition) and a business opportunity (supplying own-label alongside branded products). Brand equity management is the primary defence against private label encroachment.
Understanding private label dynamics is essential for Brand Managers, Category Managers, and commercial teams. Category Managers often manage ranges including both branded and own-label products. The ability to defend branded distribution against own-label is a key skill in commercial and category roles.
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