Costco actually pioneered that approach. The traditional corporate strategy had always been to have a bunch of different house brands fpr different product categories.
Not my experience with Amazon basics.
This makes sense, as Costco is trying to move a lot of units and you can move a lot more units into the market that's looking for "perfectly adequate" than the ones looking for "the best". Honda outsells Porsche, Ferrari, and Lamborghini combined and all that...