subject: Private Labels Are Here To Stay! [print this page] Private labels enjoyed peak sales during the economic recession. As the economy begins to stabilize, industry experts and analysts are still debating whether consumers will continue purchasing private labels or return to their favorite national brands. According to a report by Credit Suisse Analyst Robert Moskov in The Wall Street Journal, sales of private label or store brands have slowed down as the economy shows signs of recovering. Others feel the private label industry has come a long way from its early copycat days and is producing innovative products that successfully compete against top brands for consumer loyalty.
The Nielsen Company, a marketing and advertising company based in New York, reports unit sales of store brand products were up by 8 percent from 2007, while brand names took a slide by about 4 percent.1
According to a separate report by Nielsen2, the fastest growing segment of private label consumption is the affluent households. Private labels sales still constitute about 20 percent of the total consumer sales, but according to Nielsens report, these sales are largely being driven by households that earn $100,000 or more, and not budget-conscious buyers.
Better Homes and Garden conducted one of the largest consumer survey studies and released its findings in January 20103. Over 50,000 consumers took part and when asked what they thought of store brands (private label) vs. top brands, 56 percent of consumers said they had purchased store brands more frequently in the past year. Fifty-nine percent of the buyers said they considered store brands to be just as good; 66 percent believed that private label brands are extremely good value for the money.
Private label supplement manufacturers have provided leadership to the industry, from innovations in manufacturing technologies to the introduction of new ingredients backed by science. An experienced private label vitamin manufacturer can make it easy for retailers and entrepreneurs to compete against other major brands.
How You Can Make a Successful Private Label Brand!Consumers are looking for value-driven, innovative, premium quality supplements that are effective and contain quality ingredients. Products that have health claims are attracting the strongest growth.Formulations based on sound research and clinical testing are giving private labels a competing edge over leading brands. Many retailers are successful in private label sales because they have put their time, energy and resources into producing a scientifically-supported supplement. Private label supplements such as CoQ10, Omega 3, Vitamin C, Multi-vitamins are providing key commodities to consumers. Look for supplements that have shown steady growth. Customers are looking for convenience in packaging such as single serving packets. Paying attention to packaging, labeling and merchandizing pays off and sets your private label brand apart from the competition. Private labels are here to stay. Choosing a private label supplement manufacturers is the most important decision for successfully launching your private label brand. Look for a private label vitamin manufacturer that can provide you with superior-quality supplements manufactured within a GMP-certified facility. If you are looking for small quantity orders that fit within your budget, Vitacap Labs can provide the perfect solution to your manufacturing requirements. Starting at 96 bottles, we offer you the freedom to mix and match any combination of our products to meet our minimum!
For more information or to place an order, speak with one of our service professionals today.
