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.