The retail industry is a challenging industry with a lot of competition but also a lot of opportunities. It can be difficult for retailers to set themselves apart from the competition and decide which products they want to sell in their stores. A very popular and effective solution for both of these issues is to offer private label products in your own store.
What is private label?
Basically, private label is a very broad term. But in general, private label manufacturing means that instead of manufacturing products yourself, you partner up with an existing manufacturer, who has experience in building products in your desired domain and you outsource the production and in many times even the overhead tasks like bottling, filling and packaging.
There are many producers out there who are specialized in this kind of manufacturing. Either they have ready-made products which they produce according to their experience (and some adjustments you specify). Or they produce a new product according to your fixed specifications just like your own recipe, design or formula.
Advantages of private label for retailers
Higher margin
Having private label products in your store can lead to higher margins and maximize your profits. Since these products do not have the branding cost of the national brand or the middleman fee to bring it to the retailer’s store, private label brands are more profitable, and they leave a better margin than national brands.
Flexibility
As a retailer with your own private label brand you are able to be more flexible and respond to consumer demand and trends quicker than larger national brands. Your big advantage is, that you know the customers who visit your store every day and can easily identify their needs and expectations. Launching or extending your business through a private label brand with your own product line can accelerate your customer relationships and by definition also provide products to your clients only you have.
Full control and ownership
Retailers who launch private label products manufactured by a production partner have full control over the products they will receive and can have their products manufactured on their own terms. You are in close contact with the manufacturer and have control over the design, materials and quality of your products. You can choose to produce anything from candles, shampoo, decor to menstrual cups.
Branding
Private label manufacturing gives you as a retailer the opportunity to develop your very own branding concept for your private label brand. You get to control what the products look and feel like and what the customers see in your store.
Extend your assortment
You might offer a variety of products in your store but might be lacking certain items and as a result losing customers to competitors who are offering those products. Private label offers an opportunity for you to extend your assortment and offer new products to your customers.
Launch your own private label products with wonnda
If you are convinced of the advantages that private label offers for you as a retailer why not start your own private label brand for your store? The great advantage of wonnda.com is that you can simply let us do the heavy lifting. Here at Wonnda, we work with top European producers for private labelling and contract manufacturing.
The first step in getting your private label product line to market is probably the most crucial – finding the right manufacturing partner for your project. Just tell us quickly about your project or product idea. We will then approach the most suitable producers for your project and connect you with them. Sounds interesting? Then just fill out the form or send us an email with your desired product!
