Private Label Anyone?

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From the moment I came into this world I was already exposed to different brands. Strong brands. For Filipinos, a refrigerator is a Frigidaire. He asks for Colgate when he needs toothpaste, Xerox when he means photocopy, Mongol for pencil. San Miguel for beer. I could go on and on. Those were the days when brands reign supreme. Years ago, Magnolia sold its ice cream manufacturing facilities to Nestle but San Miguel Corporation, its parent company, held on to the brand Magnolia only to be resurrected many years later.

Twenty years or so after, are brands still relevant? Today, Generic Drugstores have mushroomed all over the metropolis. The government passed the Generics Law to make medicines more affordable for everyone. Independent players in the fuel industry became alternatives to the formidable Big Three - Shell, Caltex and Petron. Deregulation in the energy sector was the answer to the cartel that is the Big Three. Suddenly the latter could not increase prices indiscriminately as the independent players posed a big problem.

Because of eroding margins, businessmen are forced to think of ways to stay afloat. If they are carrying major brands, they are vulnerable to changes in ownership structure/policies of their parent companies. They are not in total control of their businesses. One of the routes these businessmen take is to buy generic products and create their own brand or label. Not only can they sell anywhere, they have choices on what products to carry and at what volume. They have truly gained total control of their businesses.