Capitalism 2 and Capitalism Lab Forum

Private labelling itself does not always lead to a decrease in brand loyalty. It is the quality of the product that is being private labelled that matters.

If the product's quality is 100, then private labelling it means bring a new product of 100 quality to your product family, which is fine. On the other hand, if you are adding a new product of 20 quality to your product family, the brand loyalty will suffer.