Things to Think About Before Offering Your Own Private Label

Before you’re persuaded by the sudden interest people have in private label products to have your own line, you should take your time to determine if it’s the best move for you – that is, if doing so will enable you to make more money, increase the visibility of your retail business, and create a loyal customer base. Below are some assertions that supposedly place name brands ahead of retailer/house brands. It would be to your benefit if you read them so that you will be able to make an informed decision as to whether you should push through with your plans of producing your own line of goods.

Name brands are all about innovation.Studies on a number of house brands determined that generally, these types of products were developed to compete directly with similar products under a name brand. Furthermore, these are almost always not the outcome of a novel idea or years of research but of a desire to provide the same products for a much lower price. While these may not be true for all house brands, the fact remains that name brands invest more in research and development compared to house brands because their success on the market depends on how innovative their products are and how effective their marketing efforts are. This is contrary to house brands that bank on the popularity of the retailer that houses/owns them for their own success. Given this information, it has been suggested that name brands will always be ahead of their “no-name” counterparts because they constantly come up with original products that will continue to capture the attention and retain the loyalty of consumers.

Price is not always the top consideration when making a purchase.It’s been said that the popularity of private label products is driven by the fact that consumers look at the price of a commodity first when deciding

whether to purchase it or not. While this may be true, there are other factors that people consider whenever they make a purchase – factors that apparently make national or name brands outdo their private label counterparts. Since the name brands are often distributed in a wider area and are extensively advertised, they are more familiar to consumers as a whole. This familiarity, in turn, makes people “trust” name brands more. It also makes them see these brands as providing products of a higher quality compared to private label brands. In the end, a lot of consumers still go for name brands even though there are cheaper alternatives that may be of the same quality.

There is another reason name brands are still very popular among consumers despite the presence of cheaper and better alternatives. Aside from the creation of innovative products, familiarity, and perceived quality, ultimately people go for name brands because these represent a lifestyle. At the end of the day, a consumer goes for a product from a well-known company because doing so provides him with a sense of fulfillment.

Given the points mentioned above, you should not make a hasty decision to come up with your own private label products just because you think venturing into this type of business is profitable. As you can see, name brands are not easy to compete with. If you do decide to push through with this endeavor, make sure that you do all the necessary steps to achieve success.

About The Publisher:J&D Consortium is a company that provides complete solutions and assists your total private label demands from food and beverage to cosmetics and almost everything in between. From concept and global sourcing through to product creation and release we are here to assist you all through the incubation phase through to launch.