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. Budgeting

    Paying for the Name

    Spot and avoid the money wasters that are slowly eating away at your wallet and bank account.
  2. Entrepreneurship

    Is Generic Just As Good?

    Find out which products are worth switching to generic brands.
  3. Entrepreneurship

    Prescription Drugs

    You don't want to skimp on your health - or do you?
  4. Economics

    Explaining Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent.
  5. 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.
  6. 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.
  7. Entrepreneurship

    Cereal

    Should you switch your brand-name breakfast for an off-brand?
  8. Entrepreneurship

    Basic Baking Products

    Bake up some savings at the grocery store.
  9. 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.
  10. Entrepreneurship

    The Power Of Branding

    It's the ultimate economic moat, and we look at the approaches and effects of good and bad branding.
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. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center