Private label product use has risen sharply over the past decade, growing from 18% of consumer goods sold in 2000 to 27% of products sold in 2011. Economic challenges have contributed to the growing popularity of private label goods, which generally cost less because there are no built-in marketing expenses.
But that’s not the whole story: Many retail chains like grocery stores have carefully cultivated a private label following, building customer loyalty with quality products and packaging that compete with brand-name counterparts in visual appeal. High-quality package printing options have contributed to private label brands’ ability to compete aesthetically with name brands.
Growing Appetite for Regional and Store Brand Products
In the past, it was often easy to identify store brand products on supermarket shelves without even reading the label – the packaging and graphics were traditionally much more basic. The basic visuals gave shoppers a cue regarding the products’ primary value proposition, which was the low price – enabled in part by lower spending on packaging.
While the price point remains a key driver for private label product use (and economic challenges continue to inspire consumers to seek bargains), there are other factors at play. Consumers are showing an increased appreciation for locally produced products like regional specialties and chain-related private label goods. These can include locally bottled wines, bottled water or bakery items and condiments sold under a restaurant’s private label.
Flexible Labeling Options Enable New Private Label Packaging Strategies
To compete with brand-name products on a basis other than price alone, private label products have to be attractively packaged. This used to require an investment in costly digital printing services. However, digital production advances now make it possible and affordable for companies to produce professional-grade labels with high-quality graphics in-house.
This opens up new possibilities for companies that wish to produce small quantities of private label goods, which was once impractical due to the cost of small printing runs. Affordable new label production equipment also enables companies to produce labels on a variety of materials and in custom sizes, with incredibly vivid colors and photographic-quality graphics. This allows them to compete on an equal footing with name-brand producers from a visual standpoint.
Affordable new printing options can help companies save thousands of dollars while allowing for flexibility to accommodate manufacturing needs. For example, companies that produce labels in-house can quickly and affordably make adjustments when new ingredients are added to a product, make batch code changes, etc.
Flexible Label Options Bring Goods to Market Faster
Private label packaging options have increased as digital technology has become more affordable. The ability to produce high-quality labels on a variety of materials and in smaller quantities has helped companies deliver private label goods to market more quickly and affordably. This is a positive development for manufacturers – and for consumers.
Primera Technology, Inc.
Private Label Printing Tools Can Maximize Flexibility
Peter Chalmers is Product Manager at Primera Technology, Inc., the world's leading developer and manufacturer of specialty printing equipment. Primera Technology serves a variety of clients, including leading food manufacturers, worldwide.
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