Brands- Manufacturer or Own Label?

Brands- Manufacturer or Own Label?

I don’t understand this, if a brand gets its product manufactured by a factory and supplies it to retailers and distributes it’s product under it’s own name, would it be a “Own-Label Brand” or a Manufacturer Brand.

For Example, Company A, does not have a retail store of its own, but relies on the retailers. It makes clothing. It goes to a factory, gives it a design and the factory makes the order. Now Company A supplies these clothes to different retail outlets.

Would it make Company A a Manufacturer Brand or an Own Label Brand. Also can you give me a defination, clear defination, for an own brand. Please help me I a really condused and have an exam in a week.

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2 Comments for Brands- Manufacturer or Own Label?

  • 1. mmoonnii  |  February 15th, 2011 at 8:40 am

    A brand name belong to the producer. Your design can be produced by the company under their brand name. You should set up an agreement which states that this design is especially produced for your retailing business. Now it can’t be sold to other retailers. Other products from the manufacturer can carry a private label and logo designed only for your business.
    I hope it helped………………

  • 2. Nasik U  |  February 15th, 2011 at 8:53 am

    Dear,

    Brands are associated with ‘sellers’ not manufacturers and/or member of distribution channels. A manufacturer, retailer as seller who promise to sale quality product/service, can offer the ‘brand’. So, anyone who has offered promising quality to the consumers, can launch new brand, but it should be unique.

    For example, Nike, they have no factory worldwide. They simply go to factories producing quality products of their interests and sale it in their stores worldwide. Nike playing a ‘sellers’ role.

    If Rolls Royce manufacture a jet engine for Airbus then Airbus use her brand A380. Similarly, if they design engine for their automobile division, they can name it as Dawn – RRA brand.

    I hope these examples will give you a clear direction to resolve the ‘mystry’.

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