The Relevance of Private Label in Economic Crisis
Nowadays, consumers are becoming wiser in handling their money and managing their expenses. Branded products suffer a decrease in sales despite the growing demands of customers. This is because alongside this branded products are private label brands that offer the same merchandise at a lower price. These items are often unknown because they are not advertised, thus, making them cheaper than branded ones.
When the private labeling industry was just starting, they only offered basic commodities such as flour, sugar and eggs. These items are considered staples for every household and necessary ingredient in producing finish goods. Today, they offer a wide variety of merchandise that are salable to the public.
In fact, brands that are under private labels include detergent soaps, dish washing liquid, fabric softeners and even diapers. Others also have their own line of apparels like clothing, bags, shoes and accessories. Some even offer automotive supplies likes oils, waxes, car shampoos and car fresheners. They include almost anything and everything that can be offered at a lower price.
Because they are cheaper, others consider them as low-quality alternatives. Actually, this became the major problem during the early years of private labeling. Some items were either defective or were not durable causing the consumers to think twice before purchasing their products. Due to these circumstances, private label brands opted to improve their merchandise and redeem their reputations.
Most of the top private labeling companies do not only consider economy but quality as well. Because of the growing patronage from old and new customers, there is no way that they are going to jeopardize their names. Since they do not rely on any advertisement to market their products, their products should speak for themselves. Meaning, consumers need to buy them to know them and appreciate what they’re really made of.
To ensure the quality of these products, manufacturers examine the contents of the leading brands. From there, they try to create their own products based on the process by which the branded ones are made. Today, leading private labelers do not simply attach their names and logos on the products without inspecting it first. Because of this quality test, the only thing that differentiates branded products from private label trade names is the name of the label itself.
One of the biggest names benefiting from this trade is Wal-Mart. Some of the popular store brands are Sam’s Choice, Great Value, Equate, George and Ol’ Roy. Supermarkets and department stores are the major retailers of private label products and their income is primarily affected by their huge amount of sales in terms of these goods. That is why they continue to innovate on their product line so that they will always have something new to offer to their clients.
As the private label brands industry continues to grow, they will continue to threaten branded products. Store owners will prefer to prioritize their own store brands because it is in their own products that they earn more. Unlike the national brands, these private brands have faster development pace because they need to offer something new to curious clients all the time.
About The Author:
J&D Consortium is a company that provides complete solutions and assists your total private label demands from food and beverage to cosmetics and almost everything in between. From concept and global sourcing through to product creation and release we are here to assist you all through the incubation phase through to launch.
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