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Private label clothing is typically clothing manufactured by one company and sold under the brand name of another company. A retailer such as JC Penney owns a brand name like Stafford: it can manufacture clothing under that name itself, or assign a factory or wholesaler to produce the garments and apply its brand label. Macy's, Walmart, Target and other major retailers use the same method, and each generally owns at least a few private label brand names.
Private Label: Private Label Programs by Apparel Search - Terms of Interest to the Fashion Industry
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In the fashion industry you will often hear the terms "private label" and "private label program". You may also hear people mention "private labeling".
Private label clothing is 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 brand name 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 Macy's, 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 national brand name. One reason for the lower price is that there are no licensing royalty 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.
Private Labels Owned by Wholesalers: A wholesaler can also have their own private label brands. These are brands that the wholesaler has developed and uses when selling to retailers. They will use their own brand names rather then licensing a brand name from another company. The goal of the wholesaler is to develop their brand into a well known national or international brand. If they achieve this goal, they will find more retailers willing to purchase their brand. In addition, they will then possibly have the opportunity to license their brand to other clothing wholesalers.
A private label arrangement can also be arranged for a "service". For example, fashion design freelances may work under the name of a larger fashion design studio.
Do you know the meaning of white label?
ML33109 - private label
Make sure that you develop brand recognition.
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A private label brand gives a retailer control it cannot get from national brands: control of design, quality, price architecture and margin, and a product competitors cannot sell. The brand name on the label is the retailer's own asset, built every time a customer buys and wears the garment. That is why every major retailer maintains several such brands across categories and price points, produced for them by factories and wholesalers working to the retailer's specifications.
Whether the owner is a retailer or a wholesaler, the strategy succeeds only if the label comes to mean something to buyers — which is why the standing advice attached to this term is to develop brand recognition. A private label that stays anonymous competes on price alone; one that becomes a known national or international brand earns shelf space, repeat purchases and, for wholesalers, licensing opportunities. This entry is signed ML33109.
One reason is that no licensing royalty costs are involved — the retailer owns the brand, so no fee is paid to a brand owner for its use. Private label brands are often positioned as lower-cost alternatives to regional, national or international brands, though some are now positioned as premium brands competing with name brands.
Yes. A wholesaler can develop its own private label brands and sell under those names to retailers rather than licensing a brand from another company. If the brand becomes well known nationally or internationally, more retailers will buy it, and the wholesaler may later license it to other clothing wholesalers.
Yes. A private label arrangement can be arranged for a service — freelance fashion designers, for example, may work under the name of a larger fashion design studio.