A report published by the world business advisory firm, AlixPartners in 2008 shows that private label brands’ sales, including private label T shirts, rose at two-times the rate of national brands. On average, private label products are around 30% cheaper than national brands says, Packaging Digest. Nevertheless, store label merchandise is gradually shifting away from being taken solely as cost savings to clients over national brands. Once seen as second-class alternatives, they’re currently bridging the gap by delivering quality that’s comparable to that of national brands.
1. Control
Private labels provide retailers with control over varying factors like size, production, price, package design, and distribution. Retailers can create and implement innovative ideas to acquire market share over national brands. This comprises the capability for effecting fast adjustments to products according to changing customer preferences.
2. Branding
Successful private label brands will be capable of developing better sales chances for retailers. Store brand labels’ customization – like to tag lines and logos – could truly personalize the shopping experience of a customer which could then lead to full customer loyalty. As a perfect example, Supervalu’s line of Wild Harvest organic food provides its clients with healthy food options at truly low prices with a package design that is quite sophisticated which, rivals that of even national brands that are a lot more exclusive.
3. Structural
Dissimilar to national brand labels, retailers that have store labels could shape the in-store experience of shoppers. If you are buying from producers like a bulk order clothing manufacturer, then understand that this could translate into advantages that are gained from the in-store placement of signage and private label products. For instance, retailers could utilize horizontal shelf displays strategies, like brand blocking, as well as end-cap display fixtures to ensure that private labels stand out from their national counterparts.
4. Value
Even value isn’t the single factor that customers take into consideration when choosing private label brands, it remains a very crucial one. An expert who is the Consulting and Innovation president at the prestigious Information Resources Inc., told Packing Digest that; ‘the requirement for truly affordable solutions of packaged goods is quite high, and private label products are going a truly long way towards fulfilling that requirement’. The advantage of store brand labels that is most significant during any economic downturns is that; price gains real importance because consumers progressively turn to money-saving techniques such as increasing private label brands so they can manage budgets.
5 Wholesale income
Another private label branding advantage is that it enables retailers to be wholesalers of their brand. As a wholesaler, you can provide limited access to other varying retailers who, are prepared to pay premium costs to acquire the rights to sell your brand. This will help in generating significantly more income, and also help to expose your brand to a much wider market.
Private label branding, such as the use of private label Tshirts, offers a lot more advantages. In a nutshell, it helps retailers in effectively addressing the needs and requirements of their customers with their product offering which, is geared towards their particular requirement. This greatly increases the retailer’s profits in the end.
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