Private Label Strategy

Part Two

Manufacturer Strategies Vis-à-Vis Private Labels

 

IN THIS PART, we turn to the question that keeps brand manufacturers awake at night: How should they combat the large retailers and this new reality of private labels? Is there anything manufacturer brands can do to stop the onslaught of store brands?

Some companies, as they observe the continued growth of private label share, wonder whether their future lies in producing private labels in order to profitably employ their capacity. Rather than trying to beat private labels, perhaps it is better to join the party. Chapter 8 examines the viability of brand manufacturers’ becoming producers of private labels by exploring two options: (1) the “dual strategy” model, where the manufacturer ...