Private label: meaning and definition of a private label brand
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Is the price gap between your private label products and national brands the right one?
Schedule a meetingLearn about our pricing strategy consulting servicesMDD stands for "store brand." A store brand is a product sold under a brand owned by the retailer (Carrefour, E.Leclerc, Intermarché, Auchan, etc.), manufactured for them by a company according to their specifications. It differs from national brands, which belong to manufacturers and are sold in all stores. It is also referred to as a private label, a store brand, or, in English, a private label.
The Essentials in 6 Questions
The retailer's own brand, ranging from budget to premium.
Retailers, category managers, pricing and purchasing teams.
Price differences with domestic brands are monitored continuously.
Especially in food , increasingly in DIY, sports, pharmaceuticals and BtoB distribution.
A higher margin and a price point that builds customer loyalty.
A target price differential compared to domestic brands and a clear product line structure.
What does MDD mean? Meaning and synonyms
MDD stands for "distributor brand": the brand is the property of the distributor, not the manufacturer.
The acronym is used in the singular ("la MDD") as well as in the plural ("les MDD"). In commercial vocabulary, it appears alongside several similar terms that are best not confused.
| Term | What he refers to |
|---|---|
| MDD | Private label: product sold under a brand belonging to the retailer. |
| Private label, store brand | Synonyms for MDD in everyday French. |
| Private label, store brand | English equivalents of MDD. |
| MN (national brand) | A brand owned by an industrial company, sold in all stores and supported by its own advertising. |
| PP (first prize) | Entry-level product at the lowest price in the aisle, often under a dedicated private label. |
Private label brands in France: key figures
Nearly one in two consumer products sold in France is a private label product.
volumes of consumer goods sold under private label in 2025.
In terms of sales value: the private label brand is sold for less than the national brand.
sales for private label brands in France.
Source: NielsenIQ, relayed by LSA, 2026 .
France remains behind the Western European average (48.1% of volume). The premium private label segment is the most dynamic: +2.1% in 2025, according to NielsenIQ's consumer goods report . The difference between volume share and value share illustrates the price positioning of private labels: they represent a significant portion of shopping carts, but less so in terms of revenue.
The 4 types of private label
A retailer typically offers its private label products in several price ranges, each with its own pricing role.
entry-level price
The lowest price on the shelf, simple packaging. Role: to uphold the entry-level price image.
private label core range
The direct alternative to the national brand, often sold under the store name. Role: to capture volume at a controlled price difference.
Premium private label
Emphasis on quality, carefully crafted recipes and origins, prices close to national brands. Role: to move upmarket and increase profit margins.
Thematic and local private label products
Organic, gluten-free, vegan, regional products. Role: to meet a specific expectation and differentiate the brand.
Examples of private label brands by retailer
Each major retailer manages a portfolio of several private label brands, from entry-level to premium.
| Taught | Examples of private label brands |
|---|---|
| Crossroads | Carrefour, Carrefour Bio, Reflets de France (local produce), Simpl (budget-friendly) |
| E.Leclerc | Marque Repère, Eco+ (first prize), Nos Régions ont du Talent (local produce) |
| Intermarché | Pastures, Chabrior, Monique Ranou, Paquito |
| Auchan | Auchan, Pouce (entry-level), Mmm! (premium) |
| Non-food items | Decathlon's own brands (Quechua, Kalenji) or Leroy Merlin's (Dexter) operate on the same logic. |
Indicative list, cited as an example.
Not all of them bear the brand name: Pâturages or Marque Repère are private label brands, even if the customer does not always identify them as such.
Private label, national brand, entry-level price: what are the differences?
The difference lies in who owns the brand, where it is sold, and what price role it plays in the store.
| Criterion | MDD | National brand | First prize |
|---|---|---|---|
| Owner | The sign | The industrialist | The sign, most often |
| Where to find it | In a single store | In all stores | In a single store |
| Price | Below the national standard | Reference price of the department | The lowest part of the shelf |
| Signage margin | Generally higher profit margin | Tighter profit margin, negotiated with the manufacturer | Low profit margin, image role |
| Comparable between brands | No, there is no common EAN. | Yes, even EAN everywhere | No |
This last point has a direct impact on pricing: customers easily compare the price of a national brand from one retailer to another, but much less so that of a private label brand. This is why private label brands and national brands require two distinct pricing strategies .
Who manufactures the private label products?
Manufacturers under contract with the brand: specialized SMEs, large groups, sometimes the manufacturers of national brands themselves.
The retailer defines the specifications (recipe, quality, packaging, target purchase price) and then puts manufacturers in competition through a call for tenders. It retains ownership of the brand and can change suppliers. The manufacturer's name does not always appear on the packaging; for products of animal origin, the health stamp identifies the production facility. This "price first, cost second" approach is known as target costing .
Why Private Label Is Strategic for a Retailer
Because it offers a higher profit margin than a national brand while still providing customers with an affordable price point.
- A higher margin : without a national advertising budget to finance, private label brands generally generate a higher margin rate for the retailer.
- A price benchmark for consumers: more affordable, often with comparable quality.
- A brand relationship with the customer : a successful private label builds loyalty and differentiates the brand, since it cannot be found anywhere else.
Real-world example: a premium private-label product that’s cheaper but more profitable
A private label chocolate bar sold for €4.90 yields 15% more profit per unit than the market leader sold for €6.90.
the premium private-label chocolate bar, compared to €6.90 for the national market leader.
unit margin: €3.10 for the private label versus €2.70 for the market leader.
of the category volume captured in 18 months; the leader retains 38% of the market.
Case Study: Booper Pricing Glossary.
The cost of goods sold for the private label is €1.80, compared to an estimated purchase price of €4.20 for the market leader. The private label is gaining market share without completely cannibalizing the national brand, which retains its customer base thanks to its brand recognition.
How to set the price of a private label product?
By setting a target gap relative to domestic brands and continuously monitoring it, by product line.
- Positioning private-label brands relative to national brands: target price differential and advertised quality level.
- Define the range architecture : how many levels (entry-level, core, premium) and what gap between each.
- Monitor our competitive position relative to national brands and competing retailers' private labels by linking the private label price to the price of equivalent brands.
- Measuring the shift in sales between private label and national brand when one of the two prices changes: this is cross-elasticity .
Our article details how to manage differentiated pricing rules between private label and national brands . For the context of hypermarkets and supermarkets, see also pricing in food retail . To define these target price differences, see our pricing strategy advice .
Private label matching: comparing private label brands across retailers
There is no common EAN among the private-label products of two retailers: they must be compared based on their attributes.
Each retailer has its own barcode for its own brand, even for nearly identical products. Matching therefore relies on attributes (weight, size, composition) and sometimes the image, like any product matching without a shared EAN code . This is precisely what our product matching solution addresses.
The 3 Most Common Mistakes with Private-Label Brands
A price gap that is too wide, neglected quality, or a fragmented product offering hinder the adoption of private-label products.
- Maximizing the price difference between private-label and national-brand products: too large a price difference raises suspicions of lower quality.
- Underinvesting in quality: A private-label brand perceived as mediocre erodes trust.
- Increasing the number of private-label brands without a consistent strategy: Having 8 private-label brands under a single retailer’s name confuses customers.
To measure how sales respond to price changes, see how to calculate price elasticity using data. See also:The Guide to Pricing Organic Products in Retail.
Frequently Asked Questions
Short answers to the most frequently asked questions about private-label brands.
What does MDD mean?
MDD stands for "private label." These are products sold under a brand owned by the retail chain (for example, Marque Repère at E.Leclerc or Reflets de France at Carrefour), as opposed to national brands owned by manufacturers. Private label brands cover entry-level products, mid-range products, premium products, and themed ranges.
What is the difference between a private label brand and a national brand?
The national brand belongs to a manufacturer, is sold in all stores, and finances its own advertising. The private label belongs to the retailer, is sold only in their stores, and generally costs the customer less, while offering a higher profit margin to the distributor.
What is the market share of private-label brands in France?
By 2025, private label brands will represent 45.5% of the volume and 35.6% of the revenue of fast-moving consumer goods in France, for approximately €51 billion in sales (NielsenIQ, reported by LSA). The Western European average is higher, at 48.1% of the volume.
Who manufactures the private label products?
Manufacturers under contract with the retailer include specialized SMEs, large groups, and sometimes the national brand manufacturers themselves. The retailer drafts the specifications, puts suppliers in competition, and retains ownership of the brand.
Are store brand products of lower quality?
Not by nature. The lower price stems primarily from the absence of national advertising expenditure, not necessarily from lower revenue. Quality depends on the product range chosen by the retailer: a low-priced private label doesn't have the same specifications as a premium private label.
What percentage of a product lineup should be made up of store brands?
It varies greatly depending on the brand's positioning: from about a quarter of the product assortment at a traditional hypermarket to nearly the entire assortment at a discount store. The appropriate level depends on the identity the private label is meant to convey.
Private Label vs. Brand Name: What's the Difference?
There is no distinction in everyday French; the two terms are synonymous. The term “proprietary brand” is sometimes used when the brand does not include the retailer’s name (e.g., “Reflets de France” for Carrefour), and “private label” is used when it does (e.g., “Carrefour Bio”).
How should you respond if the national brand lowers its price?
Depending on the target spread, the MDD can be adjusted downward to maintain the spread, or the spread can be allowed to narrow to preserve the margin. The decision depends on the elasticity of the MDD and the retailer's strategy.
Key Takeaways
- MDD stands for private label brand : a brand that belongs to the retailer, not the manufacturer.
- In France, private label brands account for 45.5% of consumer goods volumes in 2025.
- Private-label products offer higher profit margins than national brands and provide customers with a price benchmark.
- Its pricing is determined by a target spread relative to domestic brands, by product line.
- Without a common EAN, comparing private-label products requires matching by attributes.
Would you like to optimize the pricing of your private-label products?
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