Tips To Expand Your Private Label Product

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Retail enterprises launching their lines of private label items frequently face an uphill battle: they rely on other manufacturers for their products and must compete with large brands.

While "generic" brands used to be associated with substandard quality, this is no longer the case. Private label products are giving large names a run for their money on shop shelves, but only if they are properly positioned. Here are five successful strategies for merchants looking to launch a private label product line.

1.       Satisfy a Specific Market Need

Private labels thrive when they deliver something new and unusual to the market. In other words, merchants should examine the top national brands in the same sector to determine whether there is an unmet demand in that market. If so, this might be your passport to success.

Private-label goods like private label sauce manufacturers that have expanded into organic and gluten-free markets are two examples. While pricing remains a distinction, it is critical to developing something distinctive that will appeal to customers.

2.       Assist or align with a Master Brand

While a product should fill specific market demand, there's no reason why merchants shouldn't be able to benefit from strategic collaborations and alliances. Consider what Target achieves with private label designer labels such as Michael Graves, Isaac Mizrahi, and now Vineyard Vines—these brands adhere to Target's promise of price and quality while providing something unique to the store's customers.

While getting a brand like private label gourmet chocolate into a retailer like Target may not be straightforward (though it may be possible), it doesn't hurt to consider along these lines. Is there a local merchant who might be contacted with a private label and message?

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