Impact of the Expansion of Private Brands on Korean Retail and Manufacturing

Artikel

The private brands (PB) of corporate retailers are booming in Korea. This paper examines the effect of the rise of PB on Korean retail and manufacturing. By utilizing both store-level data and firm-level data, I find that the expansion of PB elevates the profits of corporate retailers but does not significantly affect, and in some cases even reduces, those of subcontracting manufacturers. This occurs not only because sales of national brands (NB) decline due to the launch of similar PBs but also because the imbalance in the bargaining positions of the two parties has caused retail margins to be set high while manufacturers' operating profits are set low. The paper provides policy recommendations for fair contracts and cooperative development between retail and manufacturing companies.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: KDI Journal of Economic Policy ; ISSN: 2586-4130 ; Volume: 40 ; Year: 2018 ; Issue: 2 ; Pages: 1-21 ; Sejong: Korea Development Institute (KDI)

Classification and Topics

• Classification: Wirtschaft ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Oligopoly and Other Imperfect Markets ; Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices ; Firm Organization and Market Structure ; Retail and Wholesale Trade; e-Commerce
• Subject: Private brands ; Store brands ; Retailers ; Buyer power

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lee, Jin Kook
• Event: Veröffentlichung
• (who): Korea Development Institute (KDI)
• (where): Sejong
• (when): 2018

Further information

• DOI: doi:10.23895/kdijep.2018.40.2.1
• Handle: http://hdl.handle.net/10419/200821
• Last update: 10.03.2025, 11:45 AM CET