What are "private labels" in the context of retail?

Private labels refer to retailer-branded products that are typically produced by another company but sold under the retailer's brand name. This strategy allows retailers to differentiate their offerings, often providing unique products that can enhance their market presence and profitability. By leveraging private labels, retailers can have more control over pricing and product quality, allowing them to cater to specific customer preferences and resilience against fluctuating market conditions. This approach can also contribute to customer loyalty, as consumers often seek products that can only be found at specific retailers.

In contrast, the other choices focus on different aspects of retail strategy. Retail items exclusively sold online do not inherently fall into the definition of private labels, as they could belong to any type of branding. Luxury goods sold at a discount do not represent the private label concept, which is more about brand ownership rather than product category or pricing strategy. Lastly, special collections that are season-specific may involve thematic or timely products but do not capture the essence of private labeling, which centers around retailer ownership of the brand rather than a specific product assortment or seasonal offering.