What Private Labels come to mind?
Costco's Kirkland brand? Maybe Amazon Basics? Publix Greenwise?
If you recognize any of these, you may be able to deduce the power of brand recognition.
Examples of Private Labels
What's happening here, is these major retailers (Costco, Amazon and Publix) have built brand loyalty over the years from their customers. Fast forward years... in an effort to build new "profit centers" these retailers have gone out and forged partnerships with manufacturers to develop products which they (the Retailer) then brand with catchy titles like "Kirkland," "Amazon," and "Greenwise". Because the Retailers are cutting out middlemen like distributors and advertisers, they recoup tremendous profit margin that they get to enjoy.
White Label vs Private Label
It's important to note the key difference between White Label and Private Label -- the key difference is in the development (customization) of the product. With White Label you are simply buying existing product from a manufacturer and labeling it with your brand. While Private Label is true product development -- it's differentiated through added features & benefits that set it apart from products it sits next to on the shelf. You pull some levers, change some ingredients, and make it uniquely different.
The Fuel? A new age of Transparency & Uniqueness
The consumer ecosystem demands transparency as well as uniqueness, which I believe are two key drivers in the explosive growth of the product development, specifically private label, industry.
What questions came to mind as you read the above?
How are you going to set yourself and your brand apart through private label product?
We would love to guide you along the way!
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