What is a private brand?

A private brand refers to products that are exclusively owned by a retailer. This means that the retail chain has full control over the branding, marketing, and distribution of these products. Often created to compete with national brand products, private brands generally offer consumers a lower-priced alternative while still providing quality comparable to well-known brands.

By establishing a private brand, retailers can also enhance customer loyalty and differentiate themselves in the marketplace, as these brands can only be found within their stores. This strategy is advantageous for retailers because they can manage the product's entire supply chain and potentially increase profit margins by eliminating the intermediary costs associated with national brands.

The other options do not accurately define a private brand. For instance, a brand made by multiple manufacturers would refer more to co-branded products or brands that leverage partnerships rather than a retailer's ownership. A generic brand typically is not associated with any specific retail chain and lacks distinctive branding, while a brand available worldwide pertains to global brands that seek international recognition rather than ownership by a retailer.