Private label products or services are those manufactured or provided by one company for offer under another company’s brand. They’re also known as store brands, private brands, or private goods. Private brands can be found in a wide variety of industries from food to cosmetics. In the past, these products were often regarded as less expensive alternatives to major brands, but many private brands are actually showcased as premium brands and contend with existing name brands.
There are many advantages for retailers to promote private label products. The packaging and labels may be custom tailored to meet up specifications private label manufacturers, including product name, description, company’s logo and contact information. Private labeling allows more control over pricing strategies. There’s also more freedom for retailers to generate their very own marketing plans and to control their very own inventory in stock. With higher margins possible, there’s a greater chance for profit. Private branding allows retailers to create a personalized and unique image, which promotes stronger customer loyalty.
Private labeling provides for greater control over many factors – including sales, marketing, and distribution. Retailers may have complete control over product distribution with private label products. The merchandise are just available from the retailer – customers won’t go into a well known megastore and discover the private brand product at less price. Customers won’t discover the private brand product elsewhere on the net either.
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 very own unique product. They are able to personalize the merchandise, add their very own information, additional materials, logos, titles, etc. This may all be achieved in much less time than it would take to develop the merchandise from scratch.
In recent years there has been a significant increase in the amount of private label brands. This is specially true in Europe, where private label goods take into account almost half the merchandise sold in supermarkets. This figure is closer to 25% in the United States, however the trend appears to be increasing.
Private brands originate from a number of different sources. Numerous companies now offer contract manufacturing for private goods. Large national brand manufacturers often supply private label brands. Occasionally, competing brands are even created by the same large manufacturer. Ingredients, quality, and designs often differ quite a bit among these products, however.
Private brand goods will also be acquired from small, quality manufacturers that specialize specifically product lines. Often, these companies concentrate on producing private label brands almost exclusively. Additionally, there are regional brand manufacturers that produce private label products for specific markets.
Private label brands can be found in a wide variety of industries from food to cosmetics. These brands help develop a unique product and personalize a brand for retailers. Retailers with strong private label brands create exceptional sales opportunities for themselves. They are able to build value and recognition from the customers. Private brand products allow retailers to differentiate their products from competitors’ products, and provide consumers with an alternative to other brands.