Private Label / OEM / Store Brand
What is private label?
A private label product is one that can be sourced from a manufacture then sold under a retailer’s own brand.
A private label product is one that can be sourced from a manufacturer then sold under a retailer’s own brand. These products are therefore manufactured for exclusive sale by a particular retailer or wholesaler. Once the product is sourced from the supplier, retailers or wholesalers can modify the product however they want in order to create their own unique brand. Private labeled products tend to be cheaper than national and international brands and so have the potential to bring in huge profits if the marketing is done right. While the low prices were associated with poor quality in the past, this is no longer the case as emerging technologies have made the manufacturing process easier and more cost effective. Due to this, private label products are now made according to exacting standards and are required to meet required market regulations before distribution. For many shoppers, Store Brand have come to represent better selection, value and savings. Simply, they are products that stores put their own names or brands on. They may also be called In House Brands, Own Brands or Retailer Brands, but they all have one thing in common – They are manufactured and brought to market in much the same way as the familiar national and international brands, they sit next to on store shelves. This has greatly reduced the difference in quality with name brands hence improving the popularity of private label products as shown by the increasing market share especially in Middle East, U.S and across Europe.
Advantages that retailers with Private Label can enjoy the following:
A retailer with its own brand allows itself to have complete control over development, sourcing, warehousing, merchandising and marketing of its own products. In the past, there was a distinctive quality gap between Store Brand and established International / National brand-name products, but today this gap is closing up quickly and the quality of Store Brand goods are higher and better than ever before. Store brands are now not only being positioned as value brands, but also as brands equivalent in quality to those of manufacturers or international brands only at lower prices. Store Branding may very well be the key to staying ahead of the competition in an ever-changing market.
Today’s retail environment is filled with a great deal of competition, especially between merchants who compete via lower pricing. While advertising International / National brands can lure the shopper into the store, research has shown that the retailer actually makes more profit by selling a Store Brand. House brands offer their retailers higher profit margins with each sale which means these products can be priced more competitively.
Exclusivity and differentiation
Manufacturers’/ International / National brands will always be in demand and retailers won’t be able to afford to remove popular brands from their merchandising mix. The downside of this is that International / National brands are widely available from competing retailers, and the consumer has a wide variety of store options when seeking out these products. House brands, on the other hand, are exclusive to the retailer’s store and can’t be found anywhere else. By offering complete exclusivity through establishing a well-priced, trustworthy private label image, the retailer will undoubtedly draw in new customers and build customer loyalty. The shopper will end up becoming more reliant on the store itself because of its exclusive offerings.
Where to find manufacturers?
Since private labeling relies solely on the manufacturing capabilities of the supplier to create high quality products, finding a suitable manufacturer is one of the most important things to consider. Additionally, a manufacturer offering low production costs is very desirable, because low costs means greater profit margins for the retailer. Many private labelers therefore turn to overseas manufacturers (mostly in China) to source their products. Finding manufacturers from overseas is fraught with challenges as you have to navigate a terrain filled with dishonest suppliers, frauds and outright scammers.
There is lots of research to be done. Whether you decide to private label or not, you should ensure you have a dependable manufacturer at hand to get the goods produced. It may be best to get a good third party manufacturer to cut out the hassle of finding your own and invariably making costly mistakes along the way.
So here we are.......
"YIWU SIDI TRADING CO. LTD." with considerable hands own experience in creating different Privet labels for different market globally. We have been sourcing the products not only from china, we have network based in different manufacturing countries across the globe.
Find below few Private Labels developed for Global Clients.
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