The last decade has seen an escalation in retailer’s interest in developing their private labels. There has been a global shift in customer’s loyalty from manufacturer’s labels and brands to retailer’s private labels and brands. Consumer behaviour is changing and they are depending on the store.
Influx of millennial in consumer market is responsible for getting retailers invest money in private label brands.
Benefits of private label
- Private label products are manufactured only for wholesalers. There is no need to compete directly with name brands
- Private branding helps to build a unique image, gain marketing identity, as well as promote strong consumer recognition and loyalty.
- Retailers can deal directly with suppliers and sources.
- Packaging and labelling are designed to suit private label owner’s spec including product name, company logo, product description, and contact details.
Retailers gain more control on pricing, marketing as well as sales & distribution.
- Usually, private label items are cheaper, so retailers earn more profit.
- Private label products can be purchased only from the specific retailers, so consumers never to go to another website, but the private label owner’s store.
- The product gets identified as your ‘Brand’.
- Competitor finds it difficult to gain an edge over your private labels.
Private label is hot. If you are a chocolate maker then make sure to partner with a private label chocolate specialist. The labels need to be flexible and professional. In addition, your chocolate needs to look and feel more individual.
Things new private labellers need to consider in this retail era
Packaging and labelling
Packaging and labelling design is crucial for private labeller as well as their customer [the retailer]. It is sensible to display a presentation of the packaging designs, which complement the retailer’s products. If the product is well popular amongst consumers then the package will need special care, so as to sell itself.
Understand retailer’s competition
Private labels are aimed for competitive reasons. Therefore, it is essential to recognize retailer’s competitors. Use surveys to learn how to enhance specific products competitive edge. Private label specialist can show the potential retailer why their targeted consumers will pick their product.
Private label defines exclusive product, so choose packaging elements, which are simple. Core elements like the typography on the packaging needs to be appealing.
Private label products aim is to attract curious shoppers and trendsetters, who are looking for something different. Retailers can own a personal brand identity, which separates them from competitors.