What is Private Label?

A term used to describe products that are manufactured by one company and sold under the label of another, private label has been called many things throughout the course of its lifetime.

In the 70s it was called generic. In the 80s it evolved into private label. For a while it was referred to as value brands. Now you will frequently hear the term store brand.

While the proper name for the term private label may be disputed, it cannot be disputed that private label has evolved into the strongest brand across food, drug and mass channels.

Private label manufacturers, and those thinking about joining the ranks, are facing unfathomable opportunities, but also major obstacles and challenges.

Opportunities for Private Label Manufacturers

Today, your average chain’s store brand program represents several hundred SKU’s (just in consumer health categories) and is growing like crazy. Products and programs have evolved from basic brand names identifying the store itself into many retailers adding exclusive niche brands for specific categories.

Today, power retailers are promoting exclusive brands that they market just as they do name brands like Tylenol and Mucinex.

Private label products are no longer relegated to only being NBE (National Brand Equivalent). Store brands are so important that customers are now looking for unique formulas to separate their stores from the competition. They are looking for the WOW factor.

HealthSource Marketing can help you develop the right strategy and product line to, not only compete, but exceed expectations in this fast growing market segment.

Challenges Private Label Manufacturers Face

With almost 20 years of experience in the private label OTC consumer health industry, we have found that private label often requires a completely different selling and marketing strategy than branded products.

We have also found that many manufacturers who believe they want to enter this market segment have not planned for, or are unaware of, the many challenges and customer requirements that are a regular part of today’s private label and NBE business climate.

So, while there are unending opportunities, it is also very challenging, as customers have raised the bar and expect more in terms of marketing support and partnering than ever before.

With our experience on the manufacturing side, as well as working with many Private Label manufacturers, HealthSource Marketing can help you plan a program that retailers will truly embrace while avoiding potential pitfalls some manufacturers encounter.

Interested in learning more about what HealthSource Marketing can do to help your manufacturing company get your latest private label items on shelves? Fill out a contact form or give us a call at 716-568-0230 today.