Private labels, also known as store brand products have gained an enormous amount of traction in recent years.  These low-cost copies of national brands allow retailers to achieve better margin than with the big brands. They also appeal to price conscious customers. The recent recession years in the USA have helped the adoption of this type of product.  

Using cheaper ingredients and cheaper processes, many of these products although adequate, are stigmatized as low quality. A recent Nielsen study even found that multicultural buyers are the most likely to avoid private labels. Nielsen enjoins retailers to market strongly to multicultural consumers to eliminate these negative perceptions to win them over.  

High quality private labels

Many retailers, careful of their brand image, also produce higher quality premium version private labels that are their “store brands”.These are designed to create customer loyalty through products that can’t be found anywhere else. 

There are more advantages to private labelling: It allows the retailer to completely control the sales and distribution of the products and be in control of its marketing.  The retailer is no longer subject to the whims of the national manufacturer when to comes to pricing and promotion. 

One particularly successful example of this kind of store brand is Loblaws’ president’s choice brand. with over 1,500 line items this brand has even outsold national brand competitors in some categories. Loblaws has also successfully exported the PC brand to other retailers.

Overall, private labels, according to Statistica, account for roughly 18% of the retail market in the USA and Canada. in European countries it is even higher, such as in Switzerland (45%) or the United Kingdom (41%).

A cost effective private label

Private labelling can be rewarding on many levels. When it comes to packaging a private label product, there are many cost-effective options to choose from. These include Shrinks sleeves, inkjet labels and more.

If you are interested in creating a private brand, or simply need to package a new product, let us know. We’ll be happy to help