Own Brand: Who Benefits From It?

Own brand has been increasing on the last years in several product categories. This work analyses the impact of the introduction of own brand products. We introduce a modelling framework capturing suppliers, retailers, and consumption decisions under a non-own brand as well as with. An IP is formulated to provide a certificate that complex analytical expressions are non-negative. We then study the impact on the social welfare and all their agents as a result of the introduction of own-brand products. We conclude that own brand products are not beneficial for competing suppliers, however the opposite is true for the retailer and consumers.