Exporting under private labels: conditions and influencing factors

Based on data collected through 101 in-depth interviews among export managers, the study investigates the conditions and factors that influence exporting under private labels. Distributor's adaptation is proposed as a variation to product and promotion adaptation within the context of export strategy considerations. The findings are interpreted within a proposed framework based on a set of factors regarding a firm's competencies and goals and the industry characteristics at the export market. Key findings: (1) producers tend to export their products either entirely under a private label or else entirely under their own name or trademark; (2) exports under private labels can be predicted by the proposed set of factors; and (3) private label exporting was not found to be inferior to own-brand exporting in terms of sales and profitability. Market shares, however, were reported to be higher by nonprivate label exporters.