Private label clothing is typically clothing that is manufactured by one company and sold under the brand name of another company.  For example, JC Penney may own the brand name Stafford.  It is a brand name that they have ownership.  They can manufacturer clothing under this brand name on their own and then sell in their stores or they can assign a factory or wholesaler to produce garments for them and use this brand label.  Retailers such as Macy's, Wal-mart, Target, etc., also use the same method.  Each major retailer generally has ownership of at least a few of their own private label brand names.

 

Typically, a private label brand can sell at lower cost then a national brand name.  One reason for the lower price is that there are no licensing royalty costs involved.  They are often positioned as lower cost alternatives to regional, national or international brands, although recently some private label brands have been positioned as "premium" brands to compete with existing "name" brands.