The way this system works is not normal brand vs. brand competition, it's the sales channel (distributor) which starts to compete with the established supplier.
This is what creates the imbalance in the competition.
The distributor uses a private-label to bundle the sales of a lucrative product-tier that is sold across multiple brands in his channel into a single in-house brand.
For the original-brand to enter this channel again after it has left, it would have to be _cheaper_ than the private-label (to exceed the profit the channel makes with its private-label product), or prove that it can sell MORE VOLUME than the private-label for whatever reason (=more profit for the channel).
Unfortunately for both cases the brand is entering at a steep disadvantage, because it would have to finance its own brand to overpower the brand of the private-label, market their product to push sales, yet sell-in at a lower price, and even rely on the very same brand it now competes with (100% of the channel customers are shopping there because of the channel-brand).
At this point in the game, creating consumer-value becomes a niche-topic, because the barrier is now to create more profit for the channel, otherwise he will not allow you to reach the consumer...
That's one of the reasons why we keep seeing an increase in own-brand stores of major companies.
It's the lack of "brick and mortar net-neutrality"...
This is what creates the imbalance in the competition. The distributor uses a private-label to bundle the sales of a lucrative product-tier that is sold across multiple brands in his channel into a single in-house brand.
For the original-brand to enter this channel again after it has left, it would have to be _cheaper_ than the private-label (to exceed the profit the channel makes with its private-label product), or prove that it can sell MORE VOLUME than the private-label for whatever reason (=more profit for the channel).
Unfortunately for both cases the brand is entering at a steep disadvantage, because it would have to finance its own brand to overpower the brand of the private-label, market their product to push sales, yet sell-in at a lower price, and even rely on the very same brand it now competes with (100% of the channel customers are shopping there because of the channel-brand).
At this point in the game, creating consumer-value becomes a niche-topic, because the barrier is now to create more profit for the channel, otherwise he will not allow you to reach the consumer...
That's one of the reasons why we keep seeing an increase in own-brand stores of major companies. It's the lack of "brick and mortar net-neutrality"...