Branding is a fundamental practice in the sale of products and services. And while we may believe that a product associated with a particular brand is unique to that brand, many people are surprised to learn this isn’t always the case. Private label packaging is a process by which a product is manufactured by one company and then sold under another company’s brand.
You actually have a lot of experience with private label packaging and you don’t even know it – many of the “no-name” or generic brands we see, and even brands associated with major retailers often represent private label packaging. Without a doubt, private label packaging is a major industry when it comes to selling manufactured products.
Private label packaging often results in savings for the consumer while also creating revenue streams for a retailer.
Manufacturers and suppliers will provide their products at a reduced rate compared to the costs associated with the branded product. By applying private label packaging, the retailer then has an opportunity to promote their own brand which is often also available at a discounted price. Savvy shoppers love private label packaging because even if they aren’t aware that they are getting the same quality product, they are looking to save a few pennies and will happily by a similar item at a discounted price.
Ultimately, when they use the product and find that it is equal quality to the other brand they know, they’ll continue to purchase the private label product. This added customer loyalty not only allows you to sell more of your private label products, but also to sell other products as customers continue to visit your store.
Another benefit of private label packaging is that they allow retailers large and small to build their own brand. Create your own labels for a variety of products available at your store and you’ll begin to build relationships with your customers through that brand. Many business owners even enjoy the creative process in developing their own packaging while also taking the opportunity to use private label packaging to improve their own market presence.
Still, private label packaging despite all its benefits requires careful planning to ensure success. As is the case when you launch any product or service, you want to conduct careful market research and develop a strategic branding plan before implementing private label packaging on products you sell. Sometimes customers associate generic labeling with inferior products; so you must be careful to not only create an attractive label design that reflects your brand strategies, but also to set prices effectively and to market your product to your target audience.
When done right, private label packaging can be a great way to boost your brand, establish stronger customer relationships, and create new revenue streams for your company.