Store brand
A store brand is a brand that is only available in a particular store, owned by the retailer and produced on commission by an outside manufacturer. Store brands are a form of private label. With store brands, retailers themselves are free to choose the manufacturer, quality, price and packaging.
Within store brands, we distinguish two types of brands:
- House brands, bearing the store's name
- Own brands, which carry a different name but are sold exclusively in one store.
Whereas regular brands often specialize in a particular product segment, a private brand can cover any product imaginable.
Benefits of a store brand
Store brands are usually carried as a cheaper alternative to A-brands. Value for money and exclusivity help retain regular customers.
In addition, running store brands is interesting for retail chains because of the higher profit margins and the smaller influence of manufacturers. Not infrequently, a store brand product comes from the same factory as the A-brand, albeit with a slightly different composition and, of course, its own packaging. So the products are not necessarily of inferior quality. In theory, it is possible to work with different manufacturers or switch from a regular manufacturer.
Familiar or discount
Store brands can also be divided into two price and quality segments: B-brands and C-brands. B-brands include brands that want to look as much like A-brands as possible, with packaging that is very similar and similar quality. C-brands include discount brands that are really portrayed as budget brands. There are also special house brands consisting of, for example, organic or exclusive products.
A good example of a supermarket chain that handles multiple store brands is Albert Heijn:
Own brands can be exclusive to one store, such as the Aro brand of wholesaler Makro. If the own brand is owned by a buying group, it may also be available in multiple stores, such as Superunie's g'woon brand (including Dekamarkt, Dirk, Hoogvliet, Plus, Poiesz and Spar).
Some retail chains operate multiple proprietary brands, with each serving a particular segment. An example is Lidl, with brands such as Vita D'or (margarine, oil and sauces), Bellarom (coffee and chocolate), Alesto (nuts) and Vitakrone (salads).
