Private label brands are those brands which doesn’t produce their own goods and hire contract producers for the manufacture of the goods. The supplier and the distributers are the main owner of the brand. When you visit a shop and see products branded with the shop’s name, that is what a private label brand is.
Some of the reasons why you should be selling private label products are:
1) Control over the Product – When you create a private label product you have full control over the factors like, what should be the price of the product? What should be its shape and size? How it should be packaged? what are the ingredients that should be used in it? How should it be produced? where should it be distributed? Etc. When required you can change these factors according to your desire, to meet the changing needs of the customers. Control in production and distribution results in less wastage. You can use innovative techniques to grasp most of the market shares.
2) Time and money saving – With Private labelling, retailers don’t have to take the headache of production of the good. Usually production of goods requires heavy capital for setting up the production unit. Keeping workers in the production line comes at an excessive cost. If you are selling private label products, then you can outsource the job of production of the goods to contractors. State them all the specifications as to how you want your product to be and they will take care of the rest. In this way, you do not lose any control over the product. You also get spared from the huge investment of money and time which is required for setting up a factory. Since there is low cost in the manufacturing process, you can sell your products at a reasonable price which will help you to get the attention of many customers. Lower price also ensures your survival in the market which is dominated by big national brands.
3) Quality products- Customers will find out where to get the best deals on products. To create a brand value, the quality of the products should never be compromised. Quality is the indicator of brand health. In Private Label, since you have full control over the product, the quality of the product lies in your hand. You can give your customers the best quality products which they deserve. The customers aren’t so much brand conscious as one would think. What they really care about is better quality product at a lower price. Private firm goods are manufactured by small experienced manufactures, who sell their goods exclusively to private label brands. This helps in quality monitoring. Health conscious customers are always inclined to purchase private label supplements and private label vitamins since private label manufacturing ensures quality and reliability. Producers involved in vitamin manufacturing and supplement manufacturing take advantage of this tendency of customers to flourish in the market. Private label vitamins and private label supplements has terrific value in the market.