The evolution of private label brands and their impact on modern day society - Andy Murray07/11/2011 It can be clearly seen that the entire 20th century belonged to the manufacturers of some of the branded items whereas the next decade (i.e. 21st century) is completely dominated by the products of private label brand. The customers in the present century have switched over to merchandises manufactured by the retailers which are known as private label products and more reluctant to buy branded products. In the present scenario the branded products are used by the people as a symbol of attraction, their look and style rather a necessary thing. Before a few years majority of the private label manufacturers were not so popular like the manufacturers of branded goods. This favored the makers of branded products to create an impact and this enabled them to rein supremacy in various channels. Because of this reason the retailers had no other option and were forced to accept the prices given by the customers. Things slowly started to change towards the end of the 20th century. Even though this was a slow transition, most of the private retailers were prepared to grow up in a better way. After this, the sellers have developed in a rapid way than their counterparts (i.e. branded manufacturers). Seeing the above situation, most of the retailers in the recent past pay more attention on labels which are made by private brands. According to the current stats, in the United States, private products occupy twenty percentages of the gross sales in the departmental stores and wholesale market. The sale of Private label products has increased considerably (from 12 percent to 34 percent) in all spheres like food also in non food products in Germany. In addition to the above, evolution of modern technologies have made the retailers to enhance the quality of their manufactured products, as a result of this these products can be found everywhere. The acceptance of these products can be seen evidently from the increasing market share of private food products which had less response in the previous years. This shows us that the retailers of private label brand products are developing than the overall market and in the near future the rising economy will turn into a war field for private label and branded manufacturers. We cannot conclude that people do not like their favorite brands, but the main thing to consider is that their convenience in using these brands. In the current century which has witnessed series of recession, people are more concerned about their money and its value. Purchasing products of private label manufacturers is a perfect to save their money. This factor has paved for drastic development in this industry for the previous ten years. This kind of extraordinary developments of private label products in every aspect of our life is really laudable. These products have made the makers of branded items to reduce their costs, be creative and it can be known from the above facts that products of private label have a huge impact on the current trend.  Private Label Swimming Suit by Viviona “Over the past 10 years, retailers’ key objective was to differentiate themselves from the competition and create shopper loyalty to the store. The visual identity of the store has become very important and private label was assigned a central role in developing this,” said de Jong, who will present his point of view during his presentation titled, “The European Perspective -- Using the Store Banner to Endorse Private Label Architecture,” at the Store Brands Decisions Innovation & Marketing Summit July 18-19 in Chicago. “Almost without exception every retailer in Europe now uses its store banner to endorse its private label offering.” There is no business like Viviona which can help you in quality, pricing, delivery and QC. About Koen de Jong --- founder and CEO of consultancy IPLC and author of the book “Private Label Uncovered” Store brands—those generic labels we often equate with bargain quality—are among the fastest growing and most popular items for sale today. They provide more choices, help us save money and have come a long way from the bottom-shelf, hokey-labeled products from decades past. But not all store brands are created equal. You may be surprised to learn that an in-house brand isn’t always what it seems. A typical generic product (also called “private label”) yields a higher profit for the store, even when it sells for a lot less than the similar national brand. That’s because there are no marketing or advertising costs involved and why companies invest a good amount of money in creating private labels. Name-brand consumers pay for those Superbowl ads in the form of higher per item prices. “Private label provides value and it’s higher margin,” says Natalie Berg, Global Research Director at Planet Retail, a retail intelligence agency in London. “In a down economy, it really ticks two boxes—boosts the bottom line and drives loyalty.” It’s a common misconception that private label products are just the better known brand with a different coat of paint. Not true. There are dozens of small companies dedicated solely to developing store brands and they work directly with the retailer to develop the item, label and price points. Even when an item is made by a large well-known brand, it’s not exactly the same. If a big brand like Heinz or Hunts decided to sell private label, it will make soup or pasta sauce, not ketchup. Companies want to expand their business, not destroy the existing one. Sometimes store brands transcend their limited availability and become national brands. Martha Stewart once had products only available at Kmart, but today sells a variety of lines at multiple retail outlets including her own web site. Sears Craftsman tools, Die Hard batteries and Kenmore appliances are store brands with arguably more cache and shopper loyalty than the store that started them. Store brands from Safeway like O Organics and the Eating Right labels are sold at other supermarkets, mostly in markets where Safeway doesn’t have stores. Perhaps most surprising is the number of house brands in the market that we don’t even know are private label. Take White Cloud, for example. Once a widely available national brand of toilet paper, White Cloud is now sold exclusively at Walmart stores. Rock & Republic, a premium denim line available at luxury retailers like Neiman Marcus, will soon be a store brand (as of Spring 2012, it will be sold exclusively at Kohl’s). The bottom line is that store brands will save you money. A recent study from the Private Label Manufacturers Association found that consumers save an average of 33 percent on the total grocery bill by buying store brands. While most of us don’t exclusively buy private label products, increasing the number of store brands in our shopping basket will have a noticeable impact at the cash register. |       AuthorViviona is an elite private label service Provider. ArchivesMay 2013 Categories |
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