PRIVATE LABEL
INTRODUCTION
Private label refers to products that are manufactured by one company (the manufacturer or supplier) but sold under the brand name of another company (the retailer or reseller). In other words, private label products are produced by a third-party manufacturer but marketed and sold by a retailer as if they were their own.
KEY ASPECTS OF PRIVATE LABEL PRODUCTS
Branding: Private label products have the retailer's Branding, Logo, and Packaging Design. This gives the impression to consumers that these products are exclusive to the retailer, even though they are often made by different manufacturers.
Differentiation: Private label products help retailers stand out in the market by offering exclusive items that consumers can only find in their stores. This differentiation can attract customers and build customer loyalty.
Market Flexibility: Private label products can be used strategically to quickly adapt to market trends and consumer preferences. Retailers can introduce new products or modify existing ones more easily compared to relying on external suppliers.
Margins: Retailers typically enjoy higher profit margins with private label products compared to selling branded products. Since they have direct control over the manufacturing and distribution processes, they can reduce costs and increase profitability.
Customization: Retailers can customize the products to meet their specific requirements, whether it's in terms of Ingredients, Design, Quality, or other features. This allows them to create unique offerings that cater to their target audience.
Quality Control: Retailers can closely monitor and control the quality of their private label products. This ensures that the products meet their standards and satisfy customer expectations.
Pricing Control: Retailers have greater control over the pricing of private label products. This can enable them to offer competitive prices compared to national or international brands, which might be priced higher due to marketing and distribution costs.
.jpeg)