Find out why creating a private label might be right for you
Brand matters and more retailers and independent dealers are finding that private labels make excellent business sense. Private label products are a great way to differentiate their business from the competition. And, as the sales data shows, private labels are increasingly popular with customers.
According to the Private Label Manufacturers Association, private label product sales grew at four times the rate of national brands in 2016, ending the year with a total market share of 19.7 percent. The organization estimates the total size of the private label market in the United States is now more than than $150 billion.
More good news comes from millennials, who have overtaken baby boomers as the largest living generation. A Cadent Consulting Group study found that 51 percent of millennials have no real preference for private label vs. national brands, compared to just 39 percent of baby boomers. This bodes well for the ongoing growth and consumer acceptance of private labels.
“There’s no longer a stigma attached to buying private label products,” says Michelle Selders, president of Brand Verbalist, a brand strategy firm. “For many consumers, it’s now the smart choice. … For retailers, a private brand can be a big win, too. They have more control over the product, can better meet their customers’ needs and can optimize their profit margins.”
As the largest producer of uncoated paper in North America, we have a unique perspective on paper products, along with more than 40 years of experience with private labels. We have partnerships with some of the biggest office supply companies in the world, but we also work with independent dealers who may be interested in building a private label program.
“We have a lot of expertise on the paper itself, not just the industry, so we are able to offer a customized approach to every private label program, based on each client’s needs,” says Marium Dossaji, Customer Marketing Manager for Office Supply. “We can take their private label from concept to market, but we can also help them grow their reach as their business grows.”
Discussion