> I'm sorry but I just can't buy that. Generics in the supermarket and drugstore (at least the ones I go to) are directly next to the name-brand and clearly compete directly.
Many store-brand generics are manufactured by the exact same company that manufactures the name brand. The arrangement works because the manufacturer know that some consumers are cost conscious, some are brand conscious and willing to pay more. If they lower the price of the name-brand to get the cost conscious consumers, they lose out on the name brand markup. The solution is often two slightly different brand from the same company at different price points. For this to work, it's important that the store brand packaging have zero connection to the name brand.
Costco is especially known for doing this. IIRC, Kirkland batteries are probably Duracells in different packaging.
Many store-brand generics are manufactured by the exact same company that manufactures the name brand. The arrangement works because the manufacturer know that some consumers are cost conscious, some are brand conscious and willing to pay more. If they lower the price of the name-brand to get the cost conscious consumers, they lose out on the name brand markup. The solution is often two slightly different brand from the same company at different price points. For this to work, it's important that the store brand packaging have zero connection to the name brand.
Costco is especially known for doing this. IIRC, Kirkland batteries are probably Duracells in different packaging.