Re:FTC Sues Amazon for Illegally Maintaining Monopoly Power
by gamblor956 on Tuesday September 26, 2023 @07:03PM
(#37667043)
At a Costco, they'll often stop selling the brand name product if they introduce a "Kirkland Signature" version.
This is false. The Kirkland Signature versions are just the white-label version of one of the brands that are sold in Costco. For example, the Kirkland batteries are white-labeled Duracells; the Duracells are frequently sold right next to the Kirkland ones. The KS coconut water is just white-labeled Vita Coco and is sold right next to the VC coconut water. The point of the white-label product is to segment the market: the higher price of the branded version will make it seem like a more premium product while cost-conscious customers will purchase the white-label brand. Either way, the manufacturer gets paid.
This is false. The Kirkland Signature versions are just the white-label version of one of the brands that are sold in Costco. For example, the Kirkland batteries are white-labeled Duracells; the Duracells are frequently sold right next to the Kirkland ones. The KS coconut water is just white-labeled Vita Coco and is sold right next to the VC coconut water. The point of the white-label product is to segment the market: the higher price of the branded version will make it seem like a more premium product while cost-conscious customers will purchase the white-label brand. Either way, the manufacturer gets paid.