The Economics of Everyday Things

34. Store-Brand Products

6 snips
Jan 29, 2024
Exploring the origins and popularity of store-brand products, this episode features guests from the private-label industry. They discuss the benefits of store brands, the manufacturing process, and the challenges faced by private label manufacturers.
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INSIGHT

Store Brand History

  • Store brands gained popularity in the 1970s during inflation as cheaper "generics".
  • They evolved from plain packaging to unique branding for affordability.
INSIGHT

Benefits of Store Brands

  • Store brands offer value and build customer loyalty.
  • They are also more profitable for retailers than name brands.
ANECDOTE

Secret Makers

  • Some Kirkland products (Costco's store brand) are made by name brands like Starbucks and Duracell.
  • National brands often keep this quiet to avoid price comparisons.
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