Few Reasons for Growth of Private Label Products
If you look at the statistics, you will find that since 2017, there have been 4 percent increase in sales of private labels which is 8 times in quantity as compared to any national brand sales. Consumers also prefer to buy private brands every time they shop.
Following are few reasons why private brands are thriving in the market.
Provides better value of your money
You will always find much better quality of product at affordable price and private brand products will offer much better value for your money. Number of times private label specialist have conducted a market survey and found 61 per cent respondents will prefer to buy private-label product because it is possible to get customized offer, based on their habits. Also, you do not have to pay any unnecessary premium for the packaging and hence the brands are growing.
Private brand suppliers will provide number of offers to those who are loyal shoppers and therefore you will find that most of the consumers will prefer to buy private-label product rather than national-label items. After conducting a survey, it was found that 85 per cent consumers have preferred private-label products rather than national brand products.
Most of the health and wellness products are growing at a faster rate among the private-label segments. As per the data available, between 2016 and 2017, health sector private label companies growing at the rate of 17 per cent and 60 per cent of the respondents prefer to buy private brand health care products. Most of the private brands have also tied up with various health experts and dieticians who also help the buyer to select the right product.
Provides personalized service
Private label product suppliers will always be ready to offer personalized services to their customer. Even the survey also indicates that 77 per cent of the customers prefer to use private label products just because of their personalized service. They also like to engage in interaction with their customers by asking for feedback and try to improve their product or supply based on the feedback received from the majority of their loyal customers.
Therefore, you cannot just wish away any private label products as they are going to stay in the market for longer. However, the retailers should also keep in mind that they cannot promote private-label products at the cost of any national brands. Private label-brands should only serve as a complementary to any of the national brands.