Private labeling – uniqueness leads to business success
The retail world is currently undergoing some changes: where reselling used to dominate the market, private labels are now gaining in importance. What is this all about? How can retailers benefit from private labeling? And what opportunities does the IAW trade fair offer in this area? A conversation with Juliette Osseweijer, Assistant Sales Director at Topbrands Europe B.V.
What is private labeling and how does it work?
A private label product is a cost-effective alternative to well-known branded goods. There are two variants. Firstly, private labels can be produced exclusively for you by a manufacturer according to your specifications. For example, many retailers have their own brands as an alternative to A-brands. And secondly, private labels can also be “fancy labels.” These B-brand products are not exclusively intended for one retailer, but are sold widely. Fancy labels can be interesting if the brand gains recognition in the market.
What are the advantages and disadvantages of private labels for retailers?
Retailers have the advantage that private labels often offer higher margins than A-brands. A range of well-known private or fancy labels can strengthen customer loyalty and sales figures.
One disadvantage is that private labels do not have the marketing power that A-brands can offer. There are also significant differences in quality among manufacturers. While some products are indistinguishable from branded goods in terms of quality, other manufacturers literally sell colored water in a bottle, which deters consumers and prevents repeat purchases.
How important are private labels in retail?
Private labels are incredibly important. It is one of the fastest-growing industries worldwide, with market shares of 40% and more in some European product segments. With the current economic uncertainty and inflation preoccupying consumers, offering affordable alternatives to A-brands is an important step for retailers.
What added value can you offer visitors who are active in the private label sector or who want to enter it?
At our booth, visitors will find both well-known branded goods and private label alternatives. Visitors can physically experience and compare the price-performance ratio, see and touch the product selection of home care and personal care products on site, and, of course, taste the food products.
To what extent is the IAW trade fair a suitable platform for visitors who are active as private label retailers?
We believe that the IAW is a great platform for anyone who trades in private label. The market is changing, consumer needs are changing, and private labels are a great option for customers looking for alternative brands. The range of private label brands at the IAW has grown steadily in recent years – private label retailers have more than enough good reasons to visit the IAW.
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