National Manufacturers Also Supply Private Label Brands

Private Label Brands
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Should national brand manufacturers also supply private label brands?
National brands refer to the products that are well known or rather prominent and are often known to be of high quality. Established brands tend to be expensive. On the other hand, private labels refer to those exclusive goods made by individual suppliers and are not well known. The private labels have been proven to be cheaper and of lower quality than the national brands (Moorthy, & Suresh, 2014). For-profit maximization, retailers tend to sell both the national brand as well as the private brand.
Private labels have flogged the market over the past years. The competition has become much tight between the manufacturers. Some of the national brand manufacturers have decided to make the private labels. The decision to focus on the private labels is dangerous to the national brand goods (Glynn, & Widjaja, 2015). They get to dilute the branded products regarding quality and prices. Manufacturing of low-quality goods in place of the branded goods may jeopardize the company's strategies to dominate the market. This may consequently wipe out their reputed brand name leading to a drastic financial loss.
Instead of making profits, these manufacturers may incur losses that may be as a result of the various changes. Repackaging and changing the private label as well as the distributing cost may rise (Chkanikova, & Lehner, 2015). As much as the company may be pressurized by the retailers to pun focus on the private labels, distributing of these goods is hectic and complicated.
In conclusion, even though the private labeled goods have become competitive, national brand manufacturers should not supply them. Branded goods can only retain their established brands only if their manufacturers do not mix them with...