Retailers building brands
In the past, retailers’ “private label” brands were lower-cost alternatives to national brands, capitalizing on price-sensitive buyers with low brand loyalty. Retailers are now focused on a new value proposition: building highly desirable “owned brands” exclusively available from their store or website.
Amazon.com has notably taken an aggressive approach, currently promoting 74 unique brands. Brick-and-mortar resellers are also prioritizing owned brand strategies. Target launched three new brands specifically to reach Millennials, and its kids clothing brand Cat & Jack sold more than $2B last year. Walmart launched premium-brand Allswell Home with its own website to distance it from the store. Even 7-Eleven recently debuted a line of cosmetics.