House brand
A private label is a store brand that bears the name of the particular retail chain. The private brand is positioned as a cheaper alternative to an A-brand. The private label is owned by the retailer and is produced on commission by an outside manufacturer. Not infrequently, private brands come from the same factory as A-brands. Selling and producing private labels is a form of private label.
Within house brands, we can distinguish between two price and quality segments: B brands and C brands. B-brands include house brands that want to look as much like A-brands as possible, with packaging that is very similar and comparable quality. C-brands include proprietary brands that are really portrayed as budget brands. In addition, there are special private brands focused on, for example, organic or exclusive products.
A good example of a supermarket chain that uses multiple private brands is Albert Heijn:
- AH House brand(B brand)
- AH Excellent (exclusive products)
- AH Biologisch (organic products)
- AH Basic(C brand, formerly Euroshopper)
When a house brand bears a different name from the store itself, it is a private brand. Sometimes such own brands are available at different retail chains. An example is "g'woon" from Superunie (including Dekamarkt, Dirk, Hoogvliet, Plus, Poiesz and Spar).
Whereas regular brands often specialize in a particular product segment, a private label can cover any product imaginable. An advantage of private brands over independent B and C brands is that the customer is already familiar with the brand by choosing the store.
