Private label is referred to as the branding of the product under the name of the company that has not produced or manufactured the product. Private labeled products and services are available in wide range of industries from food to cosmetics. For example, there are many food products that are marketed and branded under the name of retail stores which are produced by some other company.
Private labels benefit both the retailers and customers in many ways. Private label products can be found more commonly in food industry. For the retailers the profit margins on private label products are high while that for customers, the products will be available at low price than the national brand. According to latest report, in India about 40-50% of retail space is dedicated to private label products. In the opinion of the retailers, private label goods have helped them to earn loyal customers and higher profit from third party brands.