PRIVATE LABELLING

Private labeling is one of the most effective ways to make your products stand out from the millions of others listed for sale online or offline. Creating a private label product can give you advantages which include:

• High profits – Higher gross margins lead to higher profits.

• Cost management – The contract or third-party manufacturer receives precise direction from retailers on what components and raw materials to use. With this approach, retailers ensure total control over cost and quality.

• Price management– Retailers also have control over price, and combined with cost control, they can manage profitability.

• Brand loyalty – It represents an opportunity to grow brand loyalty in a way that branded products do not, due to the fact that that private label products are exclusively available in the store that produces them.

• Agility to respond to trends – Agility relates to fast response and flexibility. Since retailers have greater control over their brands, they can innovate and change faster. With trends in fashion changing so rapidly, it is a challenge for retailers to keep up with the fast pace. Having full control over the design of a product, combined with the right supply chain technology, gives retailers the greater agility to stay on top of customer demands.