Private Labels are used on products sold under a distributor’s own brand but are made by a third party private label manufacturer. For example, Amazon may sell homeware products under the banner of Solimo, or fashion apparel and accessories under Myx. However, the sub-brands like Myx and Solimo are selling it under the banner of Amazon and not selling it directly to the consumer.
It takes time to build trust and establish Brand identity.
However, when you are selling your products under a different brand- the consumers can relate to the existing/popular brand simplifying the selection process for a customer.
The advantages of private labelling are as follows:
Emergence of new businesses encroaching in various fields/sectors.
European markets’ success in opting for private labelling opportunities.
Developing premium private label brands.
Improved stature of the market.
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