Take a Dive Into Home Depot Private Label Brands

By
Nicole Georgiev
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Private label brands aren’t new, just like the Amazon private label brands. Retailers have created their own private label brands for years and have focused on growing them.

Take Target private label brands for example. We've gone over what is private label and its importance, growth, and perception have changed as time has gone on.

They used to include products of subpar quality that were sold for cheap. However, that’s not always the case today. This includes Home Depot private label brands. 

These days, many of the private label brand products, like Walmart private labels, are of equal or better quality than brand name products. Private label products have increasingly become important to the bottom lines of selling companies. This is due to the products having a more appealing gross profit margin. 

The Home Depot Inc. is a well-known retailer that focuses on the home improvement industry. They were founded in 1978 with a vision to become a superstore that offers all kinds of home improvement merchandise and low prices. Home Depot also wanted to have highly trained staff that could help the customers with home improvement and repair questions. 

The company has grown to be the world’s largest home improvement retailer. They have about 2,300 stores across the U.S, Canada, and Mexico. Their website also has more than 1 million products--meaning numerous types of inventory

Private Label Brands at Home Depot

As a primarily brick and mortar shop, Home Depot has been able to avoid major competitors like the e-commerce giant, Amazon. This is primarily because a lot of Home Depot’s products are bulky and large items. These can be tough to send with express mail. 

Home Depot’s primary consumer focus includes professional contractors and DIY consumers. They strive to provide customized services by having knowledgeable staff that can assist shoppers in-store. This includes guiding them on how to operate a power tool, laying tiles, and changing a valve. 

In order to improve specific home improvement niche market, they have added more product offerings and trained experts. Even though they’re mainly a brick-and-mortar business, they’ve expanded to offer products online through eCommerce as well. 

The trained staff in-store wear orange aprons. They guide consumers through numerous categories of products. These include Home Depot private label brands. For example, Glacier Bay is Home Depot’s plumbing product line. 

Home Depot’s Product Strategy

As one of the top retailers in the world, Home Depot has a specific marketing mix product strategy. Here are some of their product categories and products:

  • Appliances - small appliances, refrigerators, washers, dryers, cooking appliances, heating, and cooling
  • Bath and Faucets
  • Blinds and Decor
  • Doors and Windows
  • Building Materials
  • Electrical Appliances 
  • Kitchen Equipment - kitchen sinks, kitchen faucets, cabinets, cabinet hardware
  • Lawn and Garden
  • Lighting
  • Painting
  • Outdoor

Most of Home Depot’s products are private label brands. However, they also sell major brands. Over time, Home Depot has acquired other companies and brands to strengthen its position in the market. 

The Quality of Home Depot Private Label Brands

When it comes to quality, Home Depot focuses on using a very specific grading system. This includes marking their products as “Good”, “Better”, or “Best”. All products are categorized as one of those along with the brands that the retailer sells. 

The private label brands that Home Depot sells occupy the entire spectrum. In Plumbing, Home Depot’s Glacier Bay brand is graded as “Good”. The Delta brand is “Better”, Kohler is considered “Best”. 

For Hardware, the brand Rigid is categorized as “Best”. They have reasonably priced products and are considered to be commercial grade. Before, they were only available to professional companies, but now the general public has access to them. They also offer lifetime service warranties. 

In terms of Home Decor, the brand Home Decorators Collection is categorized as “Better”. While the products are on the pricier side, they’re built with care and are appealing to the eye. There are other brands that can be considered to be “good enough” based on the consumer. However, Home Depot doesn’t use this category to describe its items.

Pricing Strategy

Consumers love low prices. Home Depot definitely gives that to their consumers as they follow an Everyday Low Pricing strategy. It’s a promise to have low prices without having to wait for sales. They also don’t make their consumers rely on comparison shopping. 

Home Depot offers the lowest possible prices in order to attract more consumers. They emphasize expert advice and quality service to attract and retain customers.

Home Depot’s Growth Plan

Home Depot has a generic strategy and an in-depth growth strategy. These two are interrelated in order to ensure maximum and continuous business growth. As the largest home improvement retailer in the United States, this strategy guides them to securing the largest market share possible. 

The leadership that Home Depot offers stems from the successful implementation of its generic strategy and growth strategy. Product development is included in their in-depth growth strategy. This is what contributes to their competitive advantage and growth. The Home Depot private label brands are also supported. 

Market penetration is highly used within their growth plan. They support business growth by implementing discount sales, special offers, and more in order to get more customers. The company’s objective is to offer affordable prices, and they do that with their private label brands.

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