In retail merchandising, what does "private label" refer to?

In retail merchandising, "private label" specifically refers to brand products that are exclusive to a retailer. This concept allows retailers to market their own brands, often produced by a manufacturer but sold under the retailer's label. This strategy can enhance the retailer's brand identity and often provides a price competitive edge since private label products tend to have lower marketing and distribution costs compared to national brands. Retailers can control the quality, pricing, and marketing of these private label products, which can lead to increased customer loyalty as shoppers may seek out these unique offerings that are only available at specific stores.

For example, grocery chains often have private label products, such as store-brand organic foods, which can attract shoppers looking for quality at a better price point. This exclusivity is a significant distinction that sets private label products apart from those sold by multiple retailers or those that may carry no recognizable brand at all.