Private label clothing
typically clothing that is manufactured
by one company and sold under the brand name of another
company. For example, JC Penney may own the brand name
Stafford. It is a
that they have ownership. They can manufacturer clothing under
this brand name on their own and then sell in their stores or
they can assign a factory or wholesaler to produce garments for
them and use this brand label. Retailers such as
, Wal-mart, Target, etc., also use the same method.
Each major retailer generally has ownership of at least a few of
their own private label brand names.
Typically, a private label brand can sell at lower cost then a
name. One reason for the lower price is that
there are no licensing
costs involved. They are often positioned as lower cost
alternatives to regional, national or international brands,
although recently some private label brands have been positioned
as "premium" brands to compete with existing "name" brands.