Private labels are the labels of a product, or the
product itself, sold under the name of a wholesaler or retailer, by special
arrangement with the manufacturer (Dictionary). Private label has become
more popular for fashion oriented retailers. It’s a great way for retailers to
differentiate their selves from other competitors. Some retailers buy
private labels and developed their own private brand. It can be more profitable
for a company to stock their own brand to be apart of the merchandise that they
sell. For an example, Target is a company that buys from private labels and
carries their own private brand. Li & Fung is a brand that Target carries
in their apparel department. For instance, Target international collection was developed
by a team at Li & Fung in collaboration with the fashion designer whose
name appears on the label. Target, after approving the designs, bought the
collection from Li & Fung (Sherman).
Private labels retailers host different events to
promote their merchandise. Runway shows are a great way to promote the
merchandise. This showcases the merchant newest merchandise and the potential
buyers can scout out what’s hot and what’s not. Celebrities is also another
great way to promote the merchant merchandise. It makes them want to buy when
shoppers see celebrities promoting the merchandise. Celebrities gives
personality to the line or
product a little extra clout (Diamond 296). As a small retailer I would
purchase private label merchandise for my store through a trade show. Trade
Shows make a way for designers who do not ordinarily exhibit at the major marts.
The trade shows are especially popular with small retailers and exhibitors
because they are typically less expensive than market weeks for both groups of
participants to attend. This would give me a small retailer a chance to buy merchandise.
As a store owner private label merchandise is
cheaper when purchasing from them. Buying from a private label is a way to save
money without spending too much. I think customers would love the product and
want more of the labels.
Store is the Brand, means when a store carries their own brand only. No other
brands are featured at that store. The philosophy behind the Store is the Brand
is that the store and the brand are one and the same. (Diamond 288). Bath and
Body Works is a brand that only sells their brands unlike other retailers. They
created their own scents of fragrances and doesn’t carry no other brand. They specialize
in home fragrance, perfume fragrances, lotion, shower gels, and candles. Victory
Secrets is another example of the “Store is the Brand”, they have a wide range
of women’s undergarments, perfumes and lotions. Basically, everything they sell
is their own brand. Victory Secrets have another store by the name of Pink that
only carry their own brand too.