According to a report in 2008, private label brands saw massive growth in the decade preceding. In addition, private label food products are often an average of 30% less expensive than national brands. While, at one time, these private label options were considered to be of a lower quality than other products, that is no longer the case. Private label products can save customers money while saving a retail store money at the same time. In many cases, they are also just as high-quality as national brands.
Level of Control
When it comes to size, pricing, distribution, and package design, there is nothing better than private label products. A retailer is able to come up with new, unique ideas that help them gain market share and compete with national brands. A retailer also has the ability to implement changes to these products as the preferences of their customers adapt and change. This is leading to a fight for market share as brand loyalty and value go up against each other.
With private labels, retailers are able to ensure better sales opportunities. Everything from the design of the logo to the tagline used can personalize the experience of a customer and move them toward brand loyalty. People often choose items that appeal to them visually so having the chance to modify how your packages and components of the product look can have a huge effect on who buys your product and how often they do so.
Retailers who use private labels are able to customize the experience their customers have in their store. This might mean having a marketing advantage by virtue of in-store placement of signage and products. As an example, the retailer can use brand blocking and end-cap displays which are able to make the private label items stand out when compared to the national brands.
Beyond that, the value with private labels is higher. No matter what, many customers will appreciate a lower price on a loved item. Private label items are the perfect answer here since the quality is the same, but the price is less expensive. That can beat out brand loyalty for some retail shoppers. If you are ready to start looking at private label products, Chef Select 361 is here to help. You can learn more about our services by visiting www.ChefSelect361.com.