Private label is defined as, manufactured by a contract or third-party manufacturer and sold under a retailer’s brand name. As the retailer, you specify everything about the product – what goes in it, how it’s packaged, what the label looks like – and pay to have it produced and delivered to your store.
Once upon a time, private labels were targeting low-budget shoppers, today private-label product sales are outpacing branded products by 3x. With access to information online, shoppers are more aware of what they want and the quality of the specific product that they are looking for. Due to this, consumers purchasing process is not only driven by the brand but from a knowledge of the products. The access to product information has made consumers aware that private label products are equivalent to multinational brands.