Private Label Brand Examples

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Private Label Brand Examples

Going private label is an opportunity which many entrepreneurs and businesses are taking advantage of. No matter what your niche is, there is a chance that you will be able to expand it, by eliminating the so-called “middle man”, and taking more control of your business. Stop selling other companies’ brands, and become the brand yourself.

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Private Label is a Great Option for Business

Private labeling has been seeing incredible growth in the past couple of decades, with chains like Target, Walgreens, and Home Depot spearheading the off brand / store brand / private label revolution. In the past, generic (non-brand name) products were considered inferior, and with good reason. There was, indeed, a time when an off brand would be a simple white package with huge dark letters, housing within it a low-quality product.

Since then, many things have changed. Private labels are now considered a viable option and attractive alternative to well-known brands. Consumers are not as wary. Why? Because the quality of store brands and private labels has really soared, and the buying public began to take notice. Buying a private label product has become a win-win situation. The consumers get a quality product at a lower price, and the dealers and retailers enjoys larger sales revenue.

In 2014 ALDI, the internationally acclaimed and well-known chain of discount supermarkets, reported that around 70% of their overall sales were of private labels. Now, to be fair, that was true to ALDI alone, and does not accurately reflect the state of things all over the country. Regardless, though, private labels are gaining more and more prominence.

From grocery products, to medicinal and health products, to textiles and clothing and household items – you can find pretty much anything at the same quality of a well-known brand, but for significantly less money. In many cases, it is totally worth it. More and more people are asking themselves why they should pay more, simply for the sake of the name which is on the package, especially if the off brands are just as good if not better!

Here are some notable examples of private labels in the U.S.:

Great Value

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Great Value Private Label

This is a well-known Walmart brand, which was launched in 1993. It is the chain’s most developed house brand, though the products themselves are not produced by Walmart. The brand spread internationally, and can now be found in stores across Canada, South America, and even the Far East. Great Value has changed the design of its label and packaging several times, and the formulas of certain products have also been changed over time.

Kirkland Signature

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Kirkland Signature Private Label

About 20 years ago, Kirkland Signature products made their first appearance at Costco. The company’s private-labeling experiment was a success, and nowadays Kirkland Signature’s label adorns the front and back of many items. Newer products and new categories are constantly making an appearance, and according to Costco, Kirkland Signature now takes up about 20% of your local store’s inventory. That was (and still remains) a massive upgrade for Costco, and their KS label is still going strong.

AmazonBasics

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AmazonBasics Private Label

This store brand equivalent was launched in 2009, and it was Amazon’s way of providing their client base with more affordable versions of the products which they are buying online. Generally speaking, private label is doing very well online and offline. Amazon simply saw which products were the most searched-for and bought, and then went to work manufacturing them for cheaper prices, thereby allowing their AmazonBasics brand to become a more affordable alternative.

Kenmore Appliances

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Kenmore Appliances Private Label

One of the older private labels out there, which was first introduced in 1927. The brand is controlled by Sears, and it is one of the most well-known names in the industry. Kenmore products are manufactured by industry leaders such as Panasonic, General Electric, LG, and Bosch, making them a truly trusted brand and a winning ticket for Sears. Kenmore products range from coffee makers to washing machines and vacuums. In the recent year (2016), Kenmore expanded its reach even further, and began offering consumers other kinds of household electronics, such as their Kenmore-labeled televisions.

Trader Joe’s

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Trader Joe’s Private Label

This is a unique specimen of private labeling, with a story rooted in the 1950’s. The first Trader Joe’s store opened up in 1967, and that very same store just keeps on truckin’. What began as a single, privately-held convenience store in Pasadena, California, has now developed into a chain of over 450 stores, with about half of those stores located in the State of California. In an average Trader Joe’s store, about 80% of the products offered are Joe’s private brands. How is THAT for private labeling, huh? And Joe’s labels don’t stop at grocery items, but also include cleaners, vitamins, hygiene products, and even pet food.

Stafford

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Stafford Private Label

This brand of tailored men’s clothing is just one of J.C. Penney’s many private labels. Stafford was launched in 1991, and has recently been revitalized, along with several other JCP private labels. The company underwent some changes in management, which caused JCP’s private label sales to take a serious hit. However, in recent years the company has been putting more emphasis on their store brands, and generating greater revenue because of it.

Another example of labeling done right: celebrity lines of cosmetics, such as Honest by Jessica Alba, Nuance by Salma Hayek, and Flower by Drew Barrymore. Obviously, these celebs aren’t coming up with formulas and manufacturing the products in their private homes. An external company does all of the research, development, design, marketing, and distribution, while the name on the label gains the attention and recognition necessary to stand out.

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Jessica Alba and The Honest Company

Conclusion

The reason I feel that these are examples of labeling done right, is because in the cases I mentioned, the celebs in question were more involved in the manufacturing process. I don’t think that these lines would have succeeded as much, had these women not been part of the procedure. Cosmetics are a product which needs to provide specific results. If people use a product and don’t like it, they won’t be buying it again, no matter whose face is on the label.

If you are investing in a brand of your very own, and are using a private label company to get things started, make sure that you choose a business niche which you understand and can work with. Be aware of what your products are, be aware of who it is which is making them for you, and be aware of your customer’ needs. Do some research – wait, scratch that -, do a LOT of research, and get moving. Private labeling is experiencing amazing growth. Are you ready to jump on board?

Looking for more information on Private Label Brands? How about features on Synthetic Oils or Natural Oils like Mandarin Oil or Grapeseed Oil? We’ve got it all covered here at Innovative Private Label.

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