engleski

Private brands in retailing

Throughout the years, private labels have been growing all around the globe, and lately all of the market’s stakeholders (retailers, customers, manufacturers, etc.) are becoming more interested in this phenomenon which can provide great opportunities to them. Even though there is much literature and investigations about private labels in mature and developed markets, such as United States or Europe, research in the context of private brands in Uruguay is rare. The aim of this research is to further explore the use of private brands by retailers, as well as gaining an insight on how to benefit from these brands and creating a competitive advantage over the competitors. Moreover, the objective of this thesis is to investigate on Tienda Inglesa’s private labels, how they operate, the benefits provided to customers and the retailer, and how it can create a competitive advantage. Through an interview with a manager from Tienda Inglesa, this study provides evidence that their strategy regarding these brands is to attract customers and generate loyalty in them, because the profits might be even lower than with the sales of its premium private label. The findings also reveal that given the small Uruguayan market, it is usually not profitable to develop them given the manufacturers’ requirements.

Private label ; brand ; retailing ; Tienda Inglesa ; retail chain

MDiB, Trade & International Business