We Can Help You Out Having Your Own Private Label!
As the owner of a private label, you control the quality of your products. Your manufacturer will often let you make special requests and always make goods that meet your brand parameters. Thus, even as a retailer, you have complete control over the production.
Private label products are becoming an increasingly popular solution for brands looking to expand their ranges rather than items that carry national brands - the famous brands you've probably seen advertised everywhere from television to coupon mailers. This is because they mitigate many of the typical manufacturing-related problems and allow these brands to offer high-quality products with less overhead. In 2018, private label sales grew at twice the rate of recognized brands.
Let's look at the top five benefits of private label branding for your business.
You Can Win Discount Shoppers
Private labels are, on average, a third cheaper than national brands. This makes them attractive to consumers looking for a deal. However, they are no longer considered second-class alternatives, because consumers recognize that private label products offer a competitive quality to that of national brands. You will attract customers who spend much less on those specific products, and they will likely buy other items when they are in your store as well. in short, they come for the private label products for less spending and they probably throw some other things in the cart as well.
You Improve Your Own Brand
Good private label brands make a profit for retailers as they can put their logos and slogans on products. As a private label seller, you can customize your products to suit the tastes of your particular customers, and you can offer high-quality features that national brands don't necessarily have, while narrowing down other areas that your customer doesn't care about. A classic example of this is affordable cleaning products with more sophisticated packaging than the well-known brands offered by various JanSan product chain stores. For customers, this is an ideal combination of low cost and high quality that brings them back to your store on a continuous basis.
Private label branding with high-demand products allows your business to stand out from competing retailers. Basically, it will offer something different (and with better features) than stores that only offer a mix of products from the same brand. Keep in mind that people may come in to test the private label and end up buying more from your store as well. Good private label products can improve customer loyalty as they are generally not widely available and can only be purchased from you.
You Have Control
Private labeling gives retailers control over factors they cannot control when buying from well-known brands. When you manufacture private label products, you can control factors such as packaging design, price, different product sizes, as well as the production and distribution process. Similarly, you can make quick changes to all factors to keep up with customer needs and demands, whether that's offering smaller batches or creating different versions of the product. This is incredibly important in the JanSan industry as there is fierce competition for market share.
Another variation on this is control over where your private label products are placed. You can use eye-catching shelf displays to make private label products stand out from popular labels, as well as select packaging that has the same effect. Alternatively, you may have unusual and luxury items that cannot be bought elsewhere, giving people a reason to shop at your store.
It Can Be Profitable
Private label brands are brands created and then sold by the company that develops them. You don't need to pay a portion of the sales to the supplier or the brand, because it's yours. This is why private label brands generally have higher profit margins than well-known brands or “resale” products. Private labels often allow companies to secure a decent profit margin on product lines that otherwise have very low margins.
It Can Become a Whole New Business Model for You
We have already shown the benefits of using the private label to create an exclusive product that attracts customers and also retains them. However, private label branding can open up new revenue streams for your business. If your brand is popular enough or takes a place few others do, you could end up selling your private label to other retailers who will pay you for the right to carry it. This has several benefits: One is that you are benefiting from a product that you don't have to sell yourself. Another benefit is that your products on the shelves of other retailers improve your brand exposure.
Private label products are proliferating because they are so beneficial to the companies that develop and sell them. This is true regardless of the type of product that is sold under the private label. The exponentially expanding e-commerce space has become a competitor to markets generally dominated by brick-and-mortar stores, and it is a little-known fact to web consumers that e-commerce is largely dominated by private label products. Our final word on private labeling is that many retailers turn to Chinese and Asian manufacturers to find the cheapest deals on their supply of private label products, but this is not always the best practice. Western manufacturers may charge more for their products, but they also generally offer better distribution channels and design, printing, and labeling, often resulting in higher costs of creation. Local manufacturers should have a better response time, which can help you get to market faster or stay supplied during the fourth quarter, which is a common problem for retailers.
At Cyan Labs we can help you develop a new private brand with marketing strategies, product design and everything that can help you launch an attractive brand in the JanSan market and become a strong competition next to brands of the big leagues. If you need more information about all this you can write to us and we can help you by guiding you to go out to the national market in a spectacular way.
Source: Startacus