The 5-Ton Elephant Returns

Published Thursday, March 01, 2007

As interest in private labeling heats up, the question arises, “Is private labeling an offensive, defensive or opportunistic strategy for a manufacturer?” Discussions with more than 20 manufacturers indicate that for some the answer is, “it depends,” and for many others it's, “I just don't know.” Many name-brand manufacturers may reject the idea of private labeling, but they fear their electrical distributors will seek to private-label high-volume stock-keeping units (SKUs) and reduce the manufacturers' sales and profits. Manufacturers we spoke with feel the sole reason distributors are interested in private labeling is to gain a price/margin advantage. Distributors ...

The 5-Ton Elephant Returns

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