Did you know that nearly 25% of the products sold in the USA are currently classified as private label brand products? These items are an incredibly big business and are growing their sales by leaps and bounds each year. Private label brands are an over 170-billion-dollar industry, annually.
As the private label brand market continues to explode, the most successful private label brands are staking their claim in the product market by utilizing a three-tiered approach. This strategy typically employs three tiers of private label products under a company’s product umbrella…a lower costing “bargain” brand, a premium-priced luxury brand, and one that sits in the middle in both price and quality.
Depending on what product is being retailed, organic, ethnic, or non-GMO lines may be included in a company’s list of private label brands. For example, Trader Joe’s and Aldi’s have secured a large market share of private label gluten-free products, and with diet trends like the Whole 30, paleo and keto diets exploding in popularity, private label brands focused on these lifestyles will continue to expand in popularity and growth potential.
As you can already see, private label branding is big business for many companies. One of the corporations that seems to have figured out this formula to a T and is commanding the market is Amazon. Amazon private label brands now extend to some 400+ lines of merchandise, from clothing to batteries.
Let’s take a closer look at some of the private label brands that are in the top 10 of this retailing powerhouse.
- Amazon Basics-the list of private label brands that Amazon offers is extensive, but perhaps the most well-known is the line of products that fall under the Amazon Basics name. Amazon basics products encompass a variety of items, including household items, electronics, clothing, shoes, jewelry, office products, pet supplies, video gaming, and even musical instruments. In all honesty, the Amazon basics private label brands cover nearly every category of items one could need or want.
- Amazon Collection-Amazon collection is another one of the most successful private label brands that Amazon orchestrates. This brand encompasses jewelry of all types and styles, from very affordable costume style jewelry such as necklaces and charms to high-end engagement rings. Many Amazon Collection pieces feature Swarovski crystals, and these items tend to be popular sellers within this realm.
- Amazon Essentials-Amazon Essentials was launched in the year 2014 and continued on an upward trajectory since that point. The Essentials line is the entry-level line of products, and it features items that people tend to need and use on a daily basis. Such items would include basic clothing items like T-shirts and pajamas. Amazon essentials are the best items for affordable clothing for the whole family.
- Pinzon-Pinzon was Amazon’s first adventure into the world of private label brands. Pinzon is a line of high-end luxury linens. Over the almost decade since it launched, it has developed quite a loyal brand following. Their offerings of beautiful high thread count sheets and soft and absorbent towels have given them a notable foothold in the marketplace for fine linens for the home.
- Solimo-Similar to Amazon Basics, Solimo focuses its private label brand power on household items that its fans need on a frequent basis. Solimo brand products are affordably priced and very functional, making them attractive to a large fan base. With categories such as baby and kids, beauty and grooming, food and beverage, health and personal care, household supplies, pet and vitamins and supplements, the Solimo private label brand has something for everyone.
- Presto-Presto brand from Amazon is their highly-rated line of home cleaning products. They have items such as paper towels, cleaners, trash bags, and their coveted and wildly popular toilet paper. Presto brand toilet paper has been back-ordered for months recently with the Covid-19 pandemic, attesting to its cult following. Basically, Presto aims at giving its customers all the products they need to keep their homes clean and sparkling.
- Happy Belly-Happy Belly is one of the newest Amazon private label brands. It offers Amazon customers home food essentials at family-friendly prices. With food items encompassing food and beverage favorites such as coffee, dairy, snack, and pantry staples, Happy Belly and its quick shipping is appealing to young and old alike whose busy schedules make food delivery a helpful option.
- 365 Everyday Value-Amazon’s purchase of Whole Foods gave its loyal customer base access to the organic and environmentally friendly 365 Everyday Value line that Whole Foods customers were wild about. Clean and sustainable food, health, and beauty products are becoming increasingly popular as living green trends around the globe. Amazon’s acquisition of this private label brand was a huge sales gain for the already multi-billion dollar company.
- Mama Bear-Amazon Mama Bear products are all aimed at its smallest customers, children. Amazon knows that products for babies and kids are a huge business, and this line focuses on just that. Mama bear offers high-quality essential children’s products that are tested to ensure the utmost safety while still being affordable. Mama bear offers essentials like diapers, kid’s health and hygiene products, and everyday living needs like sippy cups.
- Simple Joys by Carter’s-Carters is synonymous with high quality, yet reasonably priced baby and kids clothing. Their washable, wearable designs for boys and girls have had a loyal following for decades. When Amazon partnered with them to release their Simple Joys line, they knew they would already have a loyal customer base ready to purchase their offerings.
As you can see, private label branding is a huge business, not just for industry giants like Amazon, but for retailers nationwide, such as Target, Walmart, HEB, and Rite Aid. Private label brands give companies large and small revenue streams like never before. This sales and marketing trend is growing like never before and is one that is not disappearing anytime soon.