Abstract: In order to strengthen the negotiation power and improve the self special competition advantage, retailer began to provide private brand.Private label introduction intensifies channel competition.This paper analyzes the channel competition decision under the channel structure with two symmetric manufacturers and one retailer.We reach some findings:Private label introduction will result in the decline of national brands profit under any channel power structure.The decline of imitated national brand is evident under manufacturer Stackelberg and vertical Nash structure.But under retailer Stackelberg,the decline of other national brand is evident.Manufacturer Stackelberg will improve the retailer profit under no private label. On the contrary,manufacturer Stackelberg will depress retailer profit.Under retailer Stackelberg and vertical Nash structure,private label introduction will increase the retailer profit.But under manufacturer Stackelberg structure,private label introduction will increase the retailer profit only when the competition between two national brands is weak.

Key words: manufacturer, retailer, national brand, private label, channel competition