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What is a Private Label?

Most retailers – both online and off – get their products from suppliers. There aren’t many brands that manufacture and sell their lines direct to consumers. That sales channel strategy is growing in popularity but is far from common right now.

Unlike a seller of video conferencing solutions or other SaaS providers, many firms sell products without their own name or branding. That is unless they invest in the production of private label products. If the term isn’t familiar to you, you need to read on. We’ll explain precisely what these products are. Then, we’ll outline their most notable pros and cons.    

Private Label Definition  

A private label product is one that a retailer gets produced by a third-party but sells under its own brand name. The retailer controls everything about the product or products. That includes the specs of the product, how it’s packaged, and everything else besides. 

Private label products are then delivered to the retailer to sell. As far as consumers are concerned, they’re the company’s ‘own brand’ products. For instance, a seller of collaboration software might launch a private label line of conference call hardware. Those products would get manufactured by another firm. They'd get sold, though, under the initial business’s brand name. 

Most consumer product categories include both branded and private label lines. The following are some examples of sectors where private labeling is most prevalent:

  • Grooming & Personal Care – Nail salons, hairdressers, and other establishments may sell private label nail polish, shampoo, etc. 
  • Food & Beverage – Grocery store’s own brand condiments, sauces, etc.
  • Clothing – High street clothing stores often sell their own lines alongside branded alternatives.
  • Pet Food & Accessories – Pet stores selling food, toys, and more with their own branding. 

Advantages of Private Labels 

Why, then, is private labeling common in so many niches? Put simply, it’s because the practice holds an array of advantages for retailers, big or small. The following are four of the most notable:

 1. Adaptability. 

Some retailers depend on suppliers for all their products. As such, they rely on them to react to market demand. If consumers start to desire new lines or new features, it’s the suppliers who must adapt their offerings. This can be a slow process. 

When a retailer gets private label products manufactured, they can be more agile. They can react more swiftly if they notice a shift in customer behavior. With a quick video call online, they can tell a manufacturer to tweak the product accordingly.     

2. Control over production. 

It’s not only when rapid adaptation is required that retailers have greater power. Another advantage of private labeling is that it gives more control over production.

The retailer instructs the manufacturer on all aspects of a private label product. They can define ingredients or components. They can insist upon precise specs, down to things as fundamental as a product’s color or shape.   

3. Control over pricing. 

With private labeling, retailers are in charge of the entire supply chain. They set and control production costs to ensure the most profitable pricing. Products get made in a way that makes sure of the healthiest ultimate margins.    

4. Control over branding. 

The issue with selling branded products is that it’s not your company which consumers come to love. They develop loyalty to the makers of their favorite items, not the distributors. Private label products and their packaging bear your own name and branding. 

Disadvantage of Private Labels 

Nothing’s ever cut and dried in ecommerce or retail. While private labeling has lots of pros, there’s also one significant potential con.    

1. Difficulty building brand loyalty. 

Putting your branding on products is an excellent idea in theory. In practice, however, it can be a struggle to build significant brand loyalty. Your private label lines, after all, often compete with established names in a niche.

Those long-lived brands hold some significant advantages over your private label lines. They’re going to be available in a broader range of stores, for one thing. Your private label products will be on your shelves alone. National or multinational brands, too, have a far greater budget to use on promoting their products.  

Conclusion 

Private labeling is an option open to both online and offline retailers. It’s where the vendor has lines manufactured to sell under their name and with their own branding. The principal advantages of this lie in the power it gives retailers. They control production, pricing, and branding. Taking on established brands and manufacturers, though, is no small undertaking.    

Let's talk about private label.

Private labeling is an option open to both online and offline retailers. It’s where the vendor has lines manufactured to sell under their name and with their own branding. The principal advantages of this lie in the power it gives retailers. They control production, pricing, and branding. Taking on established brands and manufacturers, though, is no small undertaking.    


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Customer Loyalty

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Private labels as a way to win customer loyalty

Retailers that seize this moment to reset their private-label strategies can translate short-term switching behavior into long-term customer loyalty.

Even as retailers have introduced new private-label products and brands over the years, few have thought through the role of private labels in their businesses. Some private-label brands and products come into being simply because, for instance, a vendor offers to make a product at a lower cost and higher margin rate than a national brand. The retailer agrees—but doesn’t carefully define this new product’s value proposition or the product’s role in the assortment. Some retailers have been somewhat more deliberate in launching private labels: setting targets for margin and penetration rates, adjusting those targets as needed, and even making changes in their organizational structures to put more focus on private labels. But they haven’t aligned on their aspirations or developed a robust strategy for these brands.

Retailers that seize this moment to reset their private-label strategies can translate short-term switching behavior into long-term customer loyalty. For some retailers, the private-label offering may have been successful in the pre-COVID-19 environment but now requires reevaluation. For retailers that haven’t meaningfully invested in private-label capabilities, making bold moves is even more urgent.

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Industrial Textiles and Nonwovens

Left unprotected, fibers, yarns, and fabrics used in textile manufacturing and processing can become subject to bacteria, fungi or algae that cause spotting, decay, deterioration, odors and discoloration – often leading to shorter shelf life, unwanted waste and disposal of inventories.

Textile chemical formulations can also become subject to microbial degradation, causing foul odors, rancidity, and pH fluctuations, which can lead to discoloration and deterioration of fibers and fabrics.

Many textiles and finishes contain substances that support microbial growth, and textile specialties, when diluted, can produce favorable environments for microbial growth including bacteria, mold, fungi, yeast and algae.

Our industrial antimicrobial preservative technologies help prevent spoilage of spinning emulsions and finishing solutions in textile applications as well as help prevent early spoilage, odors, deterioration and/or decay and discoloration of finished textile products.

Our portfolio of solutions provides long-lasting protection for spinning finish oil, water-based auxiliaries, antibacterial fabrics and flame retardancy. 


"Wardrobe Clinic is looking to build a great partnership with companies that are developing textile technology around the world." Ron Wilch lead designer 

Wardrobe Clinic laboratory is now in the process of design smart textile technology from space uniforms to healthcare safety apparel. "Wardrobe Clinic Designs "Our Vision Is For The Future!"


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