Private Lable

 

 

 

 

Private Lable

private lable

 

 

Merchandise that a store manufactures itself or in collaboration with a brand manufacturer. Advantages for the store are flexibility in pricing, control over production, cost advertising, exclusivity, in-house design and a bigger chunk of the margin. Private-label brands contribute 50% more initial markup than branded items. The downside is more inventory ownership, no markdown money and increased management responsibilities. Some store, such as Saks and Barneys, work directly with factories, while others, like Ann Taylor, work through manufacturers such as Cgyne Design. Private label covers all markets from bridge to morderate and can cost 50 to 90 precent less than the same item from a branded label. Examles of stores with private label programs are The limited, Saks (labels are called "The Works," Real Clothes" and "Saks Fifth Aveune Collection"), Barney, Macy's (International Concepts," "Morgan Taylor" and "Charter Club"), Kmart ("Jaclyn Smith") and Jcpenny ("Arizona," "Worthington" "Hunt Club").