Generic Brand

DEFINITION of 'Generic Brand'

A type of consumer product that lacks a widely recognized name or logo because it typically isn't advertised. Generic brands are usually less expensive than brand-name products due to the lack of promotions, which can inflate the cost of a good or service. Generic brands are designed to be substitutes for more expensive brand-name goods.

BREAKING DOWN 'Generic Brand'

Generic brands are known for their trimmed-down packaging, and often plain labels. For example, a supermarket may offer its own generic product next to a name-brand product in the hope that a cost-conscious customer will select the cheaper substitute. Generic brands have grown in popularity in recent years, and many retailers now offer in-house generic products to customers.

RELATED TERMS
  1. Abbreviated New Drug Submission ...

    A written request to Health Canada to obtain marketing approval ...
  2. Brand Equity

    The value premium that a company realizes from a product with ...
  3. Brand Awareness

    The likelihood that consumers recognize the existence and availability ...
  4. Brand

    A distinguishing symbol, mark, logo, name, word, sentence or ...
  5. Abbreviated New Drug Application ...

    A written request to the U.S. Food and Drug Administration to ...
  6. Generic Securities

    A security backed by recently issued loans or mortgages. Its ...
Related Articles
  1. Investing News

    Market Vectors Launches First Generic Drugs ETF (GNRX)

    Generic drugs have been a growing market in recent years. Now there is an ETF targeted at this market.
  2. Economics

    Explaining Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent.
  3. Investing News

    Are These 2015's 10 Best Generic Pharma Stocks?

    These 10 generic generic pharma stocks present a lot of upside potential for the second half of 2015. Here's why.
  4. Fundamental Analysis

    How to Profit from the Generic Drug Trend

    Generic drugs are poised to steal market share as patent protections on a number of branded drugs expire. Investors should be ready, too.
  5. Investing Basics

    Why These Are the Most Valuable Brands of 2015

    A company's brand can be worth billions of dollars. Here are the most valuable global brands in 2015.
  6. Entrepreneurship

    The Power Of Branding

    It's the ultimate economic moat, and we look at the approaches and effects of good and bad branding.
  7. Retirement

    How to Pick the Best Medicare Part D Plan for You

    In choosing a Medicare Part D plan, here’s a helpful step-by-step guide to what you need to know to get the drugs you need at the price you can afford.
  8. Economics

    Understanding Brand Identity

    A brand identity comes from visible elements, such as the company name, the design of its logo, its packaging design, and colors, tagline and typeface.
  9. Stock Analysis

    The Best Foreign Stocks To Buy Now

    "Buy American" isn't only an admonition in support of U.S. manufacturers. In recent years, it's also been the best advice for stock investors. U.S. stocks have radically outperformed shares of ...
  10. Retirement

    6 Ways Retirees Can Save on Prescription Drugs

    Health care is one of the biggest expenses retirees face, and a large component of that is prescription drugs. Thankfully there are ways retirees can save.
RELATED FAQS
  1. What are the differences between brand name drugs and generic drugs?

    Discover the process by which brand name drugs lose their patent, allowing generics to be manufactured, as well as the differences ... Read Answer >>
  2. How does the profit margin compare for a generic drug versus a brand name drug?

    Learn how the profit margins compare for generic drugs and brand-name drugs. Brand-name drugs cost three to four times more ... Read Answer >>
  3. How do name-brand products compete with their generic competitors?

    On April 2, 1993, Phillip Morris announced that it was cutting the price of its cigarettes to compete with the growing number ... Read Answer >>
  4. Why is brand equity considered an intangible asset?

    Brand equity is an intangible asset because the value of the brand is not a physical asset and is instead determined by consumer ... Read Answer >>
  5. What impact does brand equity have on profit margins?

    Learn how both positive and negative brand equity affects profit margins by influencing profit per customer, sales volume ... Read Answer >>
  6. How does the drug sector benefit from the growth of emerging markets?

    Understand how the pharmaceutical industry benefits from the growth of emerging markets. Benefits are linked to growing economies ... Read Answer >>
Hot Definitions
  1. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  2. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  3. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  4. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  5. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  6. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
Trading Center