Final answer:
A department store's own brands of clothing are known as private brands, which are exclusive to the retailer and may offer higher profit margins. Abercrombie & Fitch is an example of a label that uses its own trademarked slogan and marketing strategies to appeal to its customer base. Option C) private brands is the correct answer to the student's question.
Step-by-step explanation:
A department store that sells clothing from brands like Levi's, as well as its own labels, is dealing with what is known as private brands. These are brands that are owned by the retailer itself and are often positioned as cost-effective alternatives to national brands. For instance, Abercrombie & Fitch, which owns the trademarked slogan “casual luxury,” strategically uses marketing tools like the imagery of the East Coast yacht club to appeal to its target audience. This differentiates its label from others, potentially increasing its value and customer loyalty.
Private brands can offer higher profit margins for retailers since they control production costs and avoid the intermediaries that come with national brand names. By marketing these private brands effectively, stores can cultivate a unique identity and loyalty among shoppers who come to associate the store with certain styles, qualities, or prices. Ultimately, the retail strategy of developing a private brand allows department stores to compete with other brand names by offering exclusive products that can't be found elsewhere.
Therefore, when referring to a store's own brands of clothing, the correct term is private brands, making option C) the correct answer. The mention of the correct option in the final answer highlights the importance of understanding the different types of branding strategies used in the retail industry.