Private label cosmetics: positioning and product line optimization
Private label cosmetics are sold under the brand name of a retailer and may be created by the retailer for exclusive marketing purposes. Various products, including cosmetics, are widely sold through private labels. Positioning optimization While refrigerated food products are much more common as private label products, cosmetics account for 5% of that market. One of the key factors that make these products stand out is pricing. Private label prices are on average 31% lower than the national brand equivalent (NB). For cosmetics, the average price difference can be up to 46%, compared to 16% for refrigerated foods. While some retailers mark their brands as premium, most enjoy discounts. Premium products are not always needed when low quality products are sufficient for the existing market. The main reason for retailers launching a private label trademark is to segment the market and strengthen the retailer's market position with suppliers and manufacturers of competing product...