Retailers will buy the products from an intermediate party and sell them directly to their consumers, being responsible for branding, delivery, and quality control. Businesses that opt for private label manufacturers have control over the production steps and can negotiate the price, choose the quantity, and make customizations in the process.
For some businesses, staying only as a retailer has many advantages, such as a simpler business model overall, more time to focus on branding, and no strings attached to the manufacturer. But for many others who have more experience in having a business and would like to have more control over customizations and be able to negotiate the price, the private label may come to be more of an advantage.
1. Sustainability and low waste
As commerce trends develop, sustainability always appears to be one of the most critical trends in the consumer’s mind. People care more and more about the environment and, more specifically, the impact of their decisions on the environment. These strong values about sustainability and the environment reflect strongly on consumers’ buying habits and behaviors. Consumers have been looking more for businesses that align with their values and that reassert their concerns about the health of the planet.
Often, big corporations that are established in the industry have a problem being sustainable and environmentally friendly. Being sustainable usually means giving up a part of the company’s profits to provide better packaging, livable wages, or sustainable sourcing of raw materials. For that reason, many companies choose to ignore their impact on the environment and opt for profit.
This can be a tremendous advantage for smaller businesses or D2C brands. Searching for small businesses that source their raw material locally gives the consumer the idea of sustainability, as they are giving back to the community they are part of, supporting small creators that are often much more responsible for the environment than a giant of the industry.
Actions such as eliminating unnecessary packaging, eliminating supply chain intermediates, caring about CO2 gas emissions, and giving a portion of the profit to good causes are just some of the steps a business can take to become more sustainably friendly and gain the trust of the consumer.
2. Online presence and e-commerce
It’s no surprise to anyone that having an online presence is essential to any business. Online shopping is a trend and part of most people’s routines. Instead of the traditional experience of going to a store in person, holding the product you’re buying with your hands, or talking to a sales expert about the best service to buy, now you can have all the competitors’ home pages open on your computer, now you’re able to compare the pros and cons of every single one of them.
The digitalization of commerce has given more power to the consumer and forced every business to have an online presence, but it’s not only the consumer side that has advantages. Expanding to e-commerce will extend the brand’s reach in terms of the target audience, allowing them to sell their product or service to many more people than before. Not only that, but the brand can now expose all the pros of the product or service, making all of the functions clear and explaining all the reasons why they are so much better than the competitors.
3. Omnichannel strategies for a better shopping experience
The world has become chronically online, but that doesn’t mean that having a physical store is not essential. Having both a store and online presence is a way for businesses to adopt an omnichannel strategy that attends to the necessities of more consumers and expands the target audience of a brand.
Different customers have different necessities, and you, as a brand, should be able to attend to as many of them as possible.
4. Using platforms to source private label manufacturers
There are many advantages to private label manufacturing, and retailers should consider starting their label brands to expand their product line while offering differentiation and sustainable alternatives to competitors.
Opting for private labels will allow brands to provide faster and better customer service, as the products can be stored in a warehouse and do not need to be outsourced from another supermarket or store. Nonetheless, it also allows retailers to have a higher profit margin, as they do not need to outsource their competitors and can sell the products to the consumers for less, being more competitive in the market and the most attractive option among their competitors.
It can be hard to find a manufacturer, but wonnda has made sure to gather all the best European manufacturers in one place! Write your product request on the website, and let us do the hard work.
Create your private-label gummy supplement line with Wonnda – the European platform for white-label, private-label, and contract manufacturing
Are you interested in producing your private label products in Europe but don’t know how to get your production up and running? Whether you’re an aspiring startup entrepreneur with an innovative product idea or an existing retailer looking to diversify your assortment with your products, launching your brand through a private label or contract manufacturing could be just the step you need to take your business to the next level.
Here at wonnda, we work with top European producers for private labeling and contract manufacturing. The first step in getting your product to market is probably the most crucial – finding the right production partner for your project. The great advantage of wonnda.com is that you can let us do the heavy lifting. 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 fill out the form!