In today’s market, there are more private label products than ever before. Over the past 20 years, the private label market share has increasingly grown with its strength generally varying with the economic conditions. In the United States, private labels command the higher unit shares than some of the strongest national brand.
With that said, manufacturers of brand products are starting to be more concerned with the competition they have among private labels.
Years ago, there was a distinct gap between the quality offered by private-label and brand-name products. That is no longer the case today; consumers will testify to the fact that private label products provide quality comparable to brand-name products. Distributors that contract private label products are now more careful about monitoring the quality of the products that are given to them as well as its procurement processes.
Manufacturers of private label products strive hard to deliver quality superior to national brands. Aside from that, manufacturing private label products cost less compared to producing brand-name products. This is the reason why entrepreneurs these days would rather deal a contract with businesses that offer private label programs than do the production for themselves.
For example, we at GotShades, a wholesale sunglasses distributor, provides private label sunglasses to entrepreneurs which we call the private label eyewear program. Small businesses or sunglasses retailers would often contact us to manufacture sunglasses for their brand. We offer them a wide range of eyewear selection, and also give them the freedom to submit their design, logo, and style that they want to incorporate to the sunglasses we’re making for them. The only thing the retailer has to deal with is how they’ll sell the product.
Business becomes way easier because of it. Private labeling also gives retailers more control over their product, pricing, and packaging, making them stand out from the crowd. It also enables retailers to manage their margins by improving the way they deal with the manufacturer.
When it comes to the competition, brands must accept the fact that private label brands are a mainstay. Instead of trying to compete with each other, brand businesses should be more open-minded and must adopt a collaborative mindset for retailers to be able to offer both brand-name products and private label products in their stores.
How about you? What do you think about private labeling?