House Brand Explained: How Retailers are Leveraging It for Growth

What is House Brand?

House brand is a product that is sold under a retailer’s own brand name instead of the manufacturer’s brand name. House brands are usually produced by a third-party manufacturer, but they are marketed and sold under the retailer’s own name.

Normally, house brands are often priced lower than branded products and can provide better margins for the retailer since they eliminate the costs associated with marketing, advertising, and brand development.

House brands are commonly found in supermarkets, pharmacies, and other retail stores, and they can include a wide range of products such as food, beverages, household products, and personal care items. They are often positioned as alternatives to name-brand products, and they may be positioned as offering comparable quality at a lower price.

Consumers often choose house brands for their affordability, and some may perceive them as offering better value for money. However, the quality of house brands can vary, so it’s important to read labels and compare products to ensure that you’re getting a good deal.

These products are also commonly referred to as store brands, private labels, private brands, or own-brand products.

Many well-known retailers offer their own house brands across various product categories, including:

• AmazonBasics (Amazon)
• Kirkland Signature (Costco)
• Great Value (Walmart)
• 365 Everyday Value (Whole Foods)
• Up & Up (Target)
• Market Pantry (Target)

Reasons behind the House Brands

Retailers create house brands for a variety of reasons, including:

• Increased Profit Margins: Retailers can earn higher profit margins on their own-brand products than on national or international brands because they eliminate the costs associated with marketing, advertising, and brand development.
• Control over Pricing: Retailers can control the pricing of their own-brand products, which can help them to compete more effectively against national or international brands.
• Differentiation: Offering own-brand products can help retailers differentiate themselves from competitors, and provide a unique selling point to customers.
• Brand Loyalty: Own-brand products can help to build customer loyalty by offering customers an affordable alternative to national or international brands, and providing a consistent quality and value proposition.