Branded Variants

The Marketing literature recognizes the importance of nationally branded products. Since the middle ages, buyers have used brands to help infer brand quality. Now, the nature of this branding has changed. Private labels baring the name of national retailers dominate many markets. However, small local retailers are often unable to support their own private labels. Consequently, these retailers have turned to branded variants. The branded variant is a branded item which is not directly comparable to other items with the same brand name. Branded variants reduce retail competition because they make direct price comparisons by consumers more difficult. This paper argues that it is in the best interests of both manufacturers and retailers to offer branded variants.