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Private Label from budget to premium products
When I started my career with private label products were always cheaper with worse quality. Consumer knows that choosing this product can save money at the expense of quality. Producer or store chains could raise up your marge because marketing was unnecessary but it was a many, many times ago. Actually, I am old man :) Nowadays, change almost everything. Private label products don't mean worse products and sometimes need a serious marketing campaign. It's because market is full with a many of competitors. Example from Poland - one of the supermarket chain's W5 has become one of the most popular product among a wide range of similar products, including big brands. In your experience, what categories have seen the most dramatic transformation from "budget private label" to "premium private label," and what factors drove this evolution most successfully?
Private label vs brand
I want to share my thoughts on private labels and brands. Many times, I have seen company owners wanting to create their own brand, believing it will bring them success. However, the market often demands private-label products instead. In my experience, private labels are usually the smarter and more profitable choice. The Problem with Building a Brand Company owners see their brands as something special—something they have worked hard for. But customers think differently. They don’t care how much effort was put into a brand. Their only question is: "What does this brand give me?" Creating a successful brand is expensive. It requires strong marketing, advertising, and a team of experts. Many companies simply don’t have the money or the right people to compete with big, well-known brands. Without strong marketing, new brands often fail. Why Private Label is the Better Choice Private-label products are a much easier and safer way to do business. Here’s why: - More profit – Private-label products don’t need big marketing budgets, so companies can sell them at better prices while still making good money. - Retailers prefer them – Big retail chains love private-label products because they can control prices and keep customers coming back. - Less risk – Instead of spending a lot of money on branding and advertising, manufacturers can focus on making high-quality products and selling them steadily. For manufacturers, private-label partnerships bring stability. Retailers place regular orders, and there’s no need to fight for attention in a crowded market. Why Private Label Wins While creating a brand sounds exciting, it’s a risky and expensive process. Private labels, on the other hand, bring steady sales, lower costs, and long-term business relationships. Summary & Key Points 1. Brands are expensive to build – Marketing, advertising, and distribution costs are high. 2. Private labels bring better profits – They don’t need big marketing budgets and are preferred by retailers. 3. Less risk, more stability – Private-label manufacturers have steady demand and reliable partners. 4. Focus on production, not advertising – Instead of spending money on branding, companies can focus on making great products.
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