Generic Brand

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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.

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RELATED FAQS
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    Profit margins are higher for generic drugs compared to brand-name drugs. However, total profits on brand-name drugs are ... Read Full Answer >>
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    Investors in the drug sector must be aware of the regulatory challenges, competition and financial concerns associated with ... Read Full Answer >>
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    Brand equity refers to the value of a brand name. If customers are willing to pay more for a product from a particular company ... Read Full Answer >>
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    A long tail becomes profitable because the costs to produce, market and distribute a product or service in a niche are low, ... Read Full Answer >>
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