Private Label a Retailersa Competitive Strategy

Abstract

In today#x2019;s market conditions there has been an increase in the power of retailers in the distribution channels for consumer goods; at the same time the competition between them has been intensified. Retail chains permanently explore and identify the sources of competitive advantage in order to benefit from them. This article focuses on retailers#x2019; private labels as a competitive strategy of the present day. The relationship between the degree of concentration of retailing and the share of private label goods is investigated based on empirical data. The factors facilitating private label goods to penetrate the market are outlined, and the benefits for retailers, manufacturers and consumers in developing such labels are discussed. The theoretical considerations are corroborated by examples from retailers#x2019; business practices.