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Retailers Rely On Captive Brands To Drive Loyalty

Elaine Wong reports that competition among retailers like Walmart, Walgreens and CVS is driving creation of "captive brands" that are manufactured by a third party but are sold exclusively at their respective outlets. "If there's something we have that other retailers don't have, it's an opportunity for us to build loyalty," says Walgreens's Tiffani Bruce.

Walgreens's three-year-old BioInfusion, for example, has grown to become one of the top brands in the hair care category. It sits on the shelf alongside Procter & Gamble's Pantene, which contends with the Cristophe line at CVS and Equate at Walmart.

P&G has taken notice. "We treat them just like we do any other competition," says P&G rep Dave McCracken.

Read the whole story at Brandweek »

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