The private brand playbook: foundations for retail

With 50 years of experience building successful Private Brand (PB) programs around the world, Daymon has developed a unique, industry-leading approach to driving sales and profits for partners and clients, through a full suite of services, from brand strategy, branding and design to insights and product development.

Every day, they link their global industry knowledge with market insights and consumer trends to create actionable business solutions. Through their extensive industry expertise in PB development and innovative retail services, Daymon International currently partners with major retailers and manufacturers across Asia Pacific, Europe, Latin America, the Middle East, and Africa.

In this playbook, IGD asked Daymon five questions that every retailer and supplier should consider as part of their PB journey. We have intentionally used the term PBs rather than private label as the ranges have evolved from being a tactical lever to a strategic engine for retailers. They offer differentiation, margin improvement, and consumer loyalty.

Is there a consistent view of Private Brand as a strategic tool?

Not entirely—and that’s precisely the point. Private Brand (PB) isn’t a monolith; it reflects different realities, market maturities, and customer expectations. In some markets, shoppers already trust PB on quality and relevance to fulfil their specific needs; in others, the very premise still needs proof. The topic of co-creation is interesting, Co-creation with consumers and suppliers is powerful, but only when the foundation exists. PB is a journey, and every player moves at a different pace.

What unites us is a common journey deeply anchored in retail organisation, spanning from strategic foundations to operational governance. It connects all pieces into a cohesive system that scales with context and market readiness. Success begins with clarity: know where you are, what you want, what you don’t want to be, where you’re going. It will define the transformation it will take to move from A to B—with C already mapped.

For a retailer just starting to focus on PBs, what are the top three initial steps they should take to be successful?

Launching a PB is not simply about adding products to shelves, it is about defining a strategic role and embedding it across the organisation. The first step is clarity of purpose: articulate what PB should represent for your business. This vision must be translated into clear strategic guidelines that inform and guide every decision.

Second, build a roadmap. PB success is a journey, not a sprint. Define milestones that reflect short-term wins and long-term ambitions, ensuring alignment with your overall business strategy. It is also about defining the right KPIs to ensure results are properly measured. If the objective is to drive traffic, this should be reflected in the KPIs; if it is to build equity, likewise. What is important is recognising that sales are not the only and most meaningful KPI to monitor, it all depends on the objectives.

Finally, engage internally to embed PB into company culture, ensuring all stakeholders recognise its strategic value. Regular reviews help PB adapt as markets change. For example, an MEA partner we worked with clearly defined PB’s role, building pride and ownership, which turned PB into a growth driver. They continue investing in culture to maintain market leadership and have set industry standards.

Why is branding a critical step to launch a PB?

Branding is critical when launching a PB because it is what transforms a product from ‘just an item on a shelf’ into a story that resonates with people. It’s not just about the logo or packaging; it’s about defining a clear personality, purpose, and meaning to connect emotionally with the consumer.

One of our clients from the Middle East recently demonstrated how powerful branding can be when developing a PB. Its PB launch was built around a bold visual identity: vibrant colours, dynamic typography, and a graphic system inspired by speed and movement. The result was more than just beautiful packaging. It became a clear expression of the brand’s promise: fast, energetic, and modern.

A strong brand creates recognition, builds personality, and gives consumers something to connect with emotionally. It helps to build trust, differentiate from competitors, and drive loyalty from day one. When branding is done strategically, it doesn’t just dress a product; it gives it life, relevance, and the ability to stand out in a saturated market. Especially in today’s market, where consumers are constantly looking for meaning and authenticity, branding is what gives a PB its identity and long-term value. Without it, even a great product can easily get lost.

We talk increasingly about PB as a differentiation factor. What does this mean in terms of product development?

Differentiation in PB means moving beyond imitation. It is no longer about replicating national brands, it is about creating unique value that resonates with consumers. Copying leading products may deliver short-term gains, but it does not build equity or loyalty. True differentiation requires owning your formulations, assets, and innovation pipeline. This shift fundamentally changes the retailer’s role: moving from buyer to product developer, which demands new skillsets, processes, and a mindset focused on innovation.

Collaboration becomes critical. Suppliers are no longer transactional partners, they are strategic allies in co-creating unique products. This demands deeper relationships, shared insights, and joint innovation agendas. This approach transforms supplier relationships into strategic alliances that enable faster, more relevant product development.

However, differentiation starts with the customer. Retailers must be relentless in understanding evolving needs and expectations. Trends such as health, sustainability, and convenience are dynamic, they shift with cultural, economic, and social changes. Being on top of these shifts is non-negotiable. For example, one of our clients launched a PB targeting health-conscious consumers.

Initially, “health” meant low-fat and organic. Post-COVID, it evolved toward immunity, mental well-being, and clean-label transparency. Today, it increasingly includes sustainability and functional benefits. To remain relevant, this brand undergoes regular reassessment to ensure its offer aligns with changing consumer priorities. This illustrates a critical truth: differentiation is not static; it is an ongoing commitment to innovation anchored in consumer insight.

To make PBs a retailer’s strategic tool, what are three key actions a retailer needs to make internally?

Turning PB into a strategic engine requires deliberate action across three dimensions. First, alignment: PB strategy must align with and serve the company’s broader objectives. Clear guidelines ensure consistency at every level, from product development to marketing, so PB reinforces the retailer’s positioning rather than fragmenting it.

Second, process: successful PB development is not the work of one team but an ecosystem. From insights and category management to quality assurance and supply chain, every function must collaborate seamlessly. A strong process transforms opportunities into robust briefs, enabling efficient development and flawless execution. Adjusting the depth of the process to the maturity is what will make a major difference and ensure a clear roadmap and milestones.

Third, governance and culture: PB cannot thrive without internal ownership. Governance provides structure, while culture creates engagement. Retailers must nurture pride in PB, positioning it as a strategic asset rather than a label. This involves maturity assessments, sequenced roadmaps, and operating model changes.

And throughout, the six pillars, Strategy, Branding, Product Development, Quality, Category Management, and Culture & Governance, must work in harmony. We all have examples of failure cases due to poor execution on one or several of these pillars, with PBs but also with National Brands. A Brand promising higher quality when the briefing is mainstream, a product that people don’t believe in, a great innovation disrupting the market, a product launched too early or with the wrong positioning. Neglecting even one can undermine the entire effort: a strong brand with poor quality or a lack of internal belief will fail to resonate.

When PB is built deliberately, measured rigorously, and evolved iteratively, it becomes more than a margin enhancer, it becomes a strategic differentiator that compounds trust and growth. For a deeper dive into the performance of PBs globally and to explore the emerging trends with real-world examples, read IGD’s Global private label trends report. Also, look out for our next instalment of the PB playbook, specifically for Category Managers, which is coming in January.