Generic Brand

What is Generic Brand?

As per the Generic brand definition, these products tend to be a lot cheaper than their branded counterparts. This is because generic brands are not promoted. The manufacturer doesn’t invest in the marketing and promotion of these brands. As a result, they sell it at a reasonable price.

Mostly, the price of the product increases due to advertisement and marketing. Now that the vendor or producer doesn’t have to invest money in marketing, they keep the prices of these products low. Manufacturers design the generic brands as alternatives to branded goods. These products are especially found in the pharmaceutical and food industries. Besides, they are especially useful during the economic Recession.

Overview of the Generic Brands

A generic brand can be identified by their simple packaging and plain labels. There is no company logo or brand name mentioned on the product or the packaging. Now, consumers know these brands by their specifications and ingredients rather than the brand name. These are the main reasons why the price of the product is extremely cheaper than branded products.

Customers tend to check the characteristics of each product properly when choosing branded and generic products. They compare the ingredients used in each product. Contrary to what people believe, generic brands do not have poor quality. Usually, people believe that branded products are high-quality consumer goods. That is the reason a majority of them buy products that have a brand logo and proper packaging.

There is no difference in the quality of the generic brand and branded product. Though you may observe a little change in the taste or ingredient in certain products, the quality and characteristics of a generic brand are identical to their branded counterparts.

What are Generic and Branded Consumer Products?

For example, a retailer could place a sour cream near the branded products’ rack to grab the attention of the customer with a low price tag. Similarly, a pharmaceutical company could manufacture a substitute for Advil’s ibuprofen. The ibuprofen is not a branded product if it isn’t manufactured by a reputable organization that advertises and promotes the product. However, it does not mean there is a difference in these products. Ibuprofen from both manufacturers will have the same features, with slight variations. However, the generic ibuprofen will be available at a reasonable price, making it easier for budget-conscious buyers to purchase it.

Some people decide to develop the generic version of a branded product. This is especially found in the pharmaceutical Industry. They either produce the generic product manually or outsource the task to another manufacturer. Now that it is a generic brand, the producer won’t advertise it. Some generic brands offer up to 80% discount on a product. Generic products can save customers thousands of bucks in the long run. However, only the medical and food industry launch generic brands in the Market.