Private label strategy has been used by retailers seeking competitive advantage through the commercialization of products sold under their brand names. Private label products used to be seen as low-priced, low-quality products. Nonetheless, its concept has evolved and some retailers have been using brand segmentation strategies by offering exclusive products with superior quality, higher prices and some degree of innovation. The objective of this study is to describe the dynamics of product development process for the case of private labels by comparing the practices adopted by different production chain agents and by verifying how the innovation process occur to these products. The present article is based on a multiple case study conducted with one of the three largest supermarket chains in Brazil and three private label suppliers in the food industry. As a result, this study characterizes the development process of private label products and provides insights related to current strategies and future prospects for this market.
Private label; Product development process; Retail; Supplier; Food
