With changing economic dynamics, the purchasing power of people is also changing. Some people can afford better products, while others have been hit badly by inflation. The difference between the purchasing power of different socioeconomic classes also depicts the kinds of products they purchase. Mostly, the rich opt for branded products. On the other hand, those struggling with their finances prefer non-branded products.
Yet, nonbranded products have multiple benefits. Let’s tell you everything about nonbranded products, including their advantages.
What are Nonbranded Products?
Nonbranded products are those which do not have a particular brand name. They are typically sold without a brand name and logo. The products might have a generic or store name or sell by the item’s name. For example, if you buy frozen vegetables from a store’s freezer with the store’s name or a local vendor, they are nonbranded. On the other hand, if you buy Birds Eye frozen vegetables, they are branded. Nonbranded products are more economical compared to branded ones. It is so because they are usually locally produced and the transport and material costs are reduced.
People with higher affordability prefer buying branded products. It is a common belief that branded products give better quality leading to a high price. However, it may not be entirely true. Branded products may not be high-quality all the time. Sometimes the price is attributed to the brand’s popularity, not quality. You may find good-quality products locally (nonbranded) at a low price.
Advantages of Nonbranded Products
Though many people think that nonbranded products are low in quality, they are not always. For example, a local seller making and selling chips on the roadside will have a lesser price compared to branded chips. If you wonder why? Because the transport, electricity, and labor charges are not added. Nonbranded products have several other advantages as well. Some of them are:
What’s better than getting Good-Quality Products at a Low Price?
Generic or nonbranded products usually have a low cost due to the above-mentioned reasons. The nonbranded products are produced by the cottage and small-scale industries. They do not require a lot of energy to power a huge manufacturing plant or hundreds of workers to operate them. Most of these products are also sold locally, reducing the cost of transport. Eventually, you receive nonbranded products at a low price.
The locals produce these items on a small scale. They are usually produced and sold in the same or neighboring region. Buying nonbranded products supports the locals and helps improves the economy. It utilizes local resources and employs local people. It also contributes to a better environment by reducing fuel burned to transport them.
Uplifting Small Businesses
Small-scale and cottage industries provide you with products at a low cost. This is made possible by reducing their profit margin. They earn more by selling as much as possible. Nonbranded products help uplift small businesses and leave a major impact collectively. In India, around 40% of the total economic value comes from the cottage and small-scale industries.
You Purchase a Paracetamol and a Tylenol; Would they give the Same Effect? Yes
Mostly the quality of nonbranded products is not compromised. They are as good as any branded product. But they cannot afford the same packaging or branding as big brands.
One of the most significant advantages of nonbranded products is that they are easily available. Sometimes you might not be able to find a particular branded product in your region due to a shortage of political issues. Yet, you can always find local products.
Branded vs Nonbranded Products
Branded products are visually more appealing and often thought to be superior quality. Premium products might have an extraordinary quality compared to nonbranded products. But, other products of daily use do not have a significant difference. If you are looking for affordable products, nonbranded is better than branded. But, if you are willing to pay more for the slightest quality difference, branded products are a suitable choice. It all depends on your socioeconomic situation and choice.
The Bottom Line
Nonbranded products do not have the best reputation, yet they are widely used. They are more popular in communities with low incomes. Alternatively, families with high incomes prefer branded products. Non-branded products are less costly, support local businesses, are easily available, and offer good quality. You can choose between branded and nonbranded per your choice and affordability.
Does non-branded mean Fake?
Not at all. Nonbranded products typically do not have a label which makes their quality doubtful. You might come across fake products in some cases, mostly counterfeit products. Nonbranded items are not sold by another brand’s name.
What is the difference between Brand and Product?
A brand refers to the name, symbol, or logo used by a company for all its products or specific products. On the other hand, the product is the item or service offered by that company.
What are Nonbranded Products examples?
Nonbranded products come without a label, and you can find many of them in your local market. For example, oils that come without a label are sold as “olive oil,” “castor oil,” or “almond oil.”
What is the difference between Branded vs. Unbranded Food?
Branded foods and unbranded foods may sometimes have a quality difference, but they are mostly the same. You might be surprised that the same industry often manufactures unbranded and branded food items.
Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.