The commercial brand, also known as private label, is a term used to describe products that bear the name of the distribution chain or directly of the supermarket that sells them.
It is a nuance that reflects the concept of dealers brand, with a few small details that differentiate it.
Over time, private label products have made their way by taking the place of branded products. Commercial brand products can be defined as:
- Flag brands: when the product is associated with the retailer's brand;
- Counter brands: the fantasy brands, which are not associated with the retailer's brand, but are only sold in its stores, for example selex;
- Generic brands: the retailer's brands that are characterized by a good quality-price ratio;
- Entry-level pricing: products that are priced affordably and compete with those of discount stores.
Offering products that bear the brand of the same manufacturing house can lead to low-cost goods production, and thus, the sale of cost-effective products.
In this way, the final selling price represents the real value of the product, not depending on other factors such as: advertising investments, distribution costs.
Attention! A product with limited costs should not be synonymous with poor quality; on the contrary, it should offer consumers a consistent and coherent quality-price ratio.
Why sell products under your own name?
When deciding to market products that share the same name as the retail chain, there are several reasons:
- Low costs: allowing for a high profit margin with minimal investment;
- Strengthens its own image: to improve the customer retention process (also known as customer loyalty);
- Builds a direct relationship with customers: by learning about their purchasing habits and lifestyles;
Once private label products and goals have been defined, it is important to choose suppliers that guarantee product quality for the customer.
What are the private label commercial brands?
The most famous commercial brands selling private label products include:
- Esselunga;
- Coop;
- Auchan.
Often, many well-known brands, already owners of very strong brands decide to also produce for the GDO.
Some examples include:
- Coop's rusks: produced by Colussi;
- Conad's Panettone: produced by Bauli;
- Esselunga's Chips: produced by Amica Chips;
- Carrefour's tortellini: produced by Giovanni Rana.
This is often done for convenience that brings benefits to both parties, favoring both the consumer and the distributing company with a better market positioning.
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