Rise of the House Brands – From No Name to Brand Name

Growth thru LicensingSales of house-brand products – the so-called ‘no name’  or store brands – are growing significantly.  The popularity of house brands has increased in the last decade driven by changing consumer perceptions of house brands. Private label brands, as used by department stores and mass merchants such as CVS, are also eating away at traditional brands because private label merchandise is generally of equal quality and stylistic content.

Among some of the better known U.S. house brands are Charles Shaw (a.k.a. Two Buck Chuck wine) at Trader Joe’s and Kirkland Signature at Costco. Big Box retailers Target and Wal-Mart have launched their own house brands in recent months,  Saks and Bloomingdales are rolling out newer, more upscale house brands, and other retailer’s have commissioned discount brands (not yet closely associated with their names) in an attempt to get a grip on the trading-down market. Even office supply chains like Staples are ramping up private label products, with an entire Web page devoted to price comparisons of Staples versus other brands.

Look for this trend to continue, especially if the economic downturn persists

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