It’s no secret that private label products are those manufactured or provided by one company for offer under another company’s name, and are available in a wide range of industries from food to cosmetics. These, also known as store brands, private label, or private label goods were often considered to be lower cost alternatives to major brands, but many private brands are now showcased as premium and compete with existing products.
There are numerous advantages for retailers to promote private label products. The packaging and labels can be custom tailored to meet certain needs, including a specific target audience, name, description, logos, etc. Private labeling allows retailers to have more control over pricing strategies. There is also more freedom for retailers to create their own marketing strategies and to control their own inventory. Overall, with higher margins possible, there is a greater opportunity for profit.
Additionally, private labeling allows retailers to create a personalized and unique image, which promotes stronger customer loyalty.
With private labeling, retailers can acquire products that are already developed, or that can be changed and re-branded in an individual fashion. Basically, retailers can control many business aspects and create their own unique product. They can personalize the products, add their own information, additional materials, logos, titles, etc. This can all be done in a lot less time than it would take to develop the product from scratch.
In recent years there has been a significant increase in the number of private label brands on the market. This is particularly true in Europe, where private label goods account for almost half the products sold in stores. This figure is closer to 25% in the United States, and the trend appears to be increasing.
The team at Square One Branding can help you develop your own private label program. Give us a call and we can get started.