eli5, how do “store brands” work?

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eli5, how do “store brands” work?

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Answer: Stores make a nearly identical product to the “name brand” and then don’t have to spend any money on advertising because the product is already advertised by the name brand and they stick the store brand or “generic brand” right next to the known name brand. They even double piggyback on the advertisement of the name brand by saying on the label “Compare to [name brand].” They also typically use a factory which is fairly close to them to produce the store brand so shipping costs less. They can then charge you less for the same product because they save on the advertisement and shipping cost.

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