Labels play an important role in attracting the customer’s attention. They are generally colorful, bright and informative, and advertise the specialties of the products on whose containers they are attached. Labels form a noticeable and prominent part of every product. Private labels on products also provide coherent instructions about the usage of the item and helps to build the customer’s confidence in the brand name.

Labels often have encoded bar-codes where much information like the batch number etc. are encrypted. A label that is well planned and well designed with relevant information regarding the length of the product’s validity, the ingredients, methods of use and storage go a long way in giving a particular merchandise an upper hand over its competitors, especially, if the others do not have any label attached on the container. Here are some of the benefits of private labeling.

1) Brand Loyalty: Any form of private branding is useful for boosting the brand name of the particular company that has manufactured the product. The labels contain a definite logo of the manufacturer which helps customers to identify and distinguish a product from its synonymous competitors in the market. A label with the company logo also ensures that there are repeat customers and that their loyalty to the brand is intact. Private labeling thereby helps companies to build a reputation for themselves in the market, and also create a good relation with the consumer.

2) Custom Tailored: Labels and packages can be designed according to the particular requirements of the manufacturer and customized to meet those ends. Such specifications include the product name, a description, a percentage-wise listing of the individual components, the expiry date, the manufacturer’s logo and finally the contact information. Although many companies do not include their physical addresses or telephone numbers on the label, the customers find a particular brand to be reliable when they know where and whom to contact in case there are certain unforeseen problems.

3) Control: A private label allows the manufacturer to have complete control over some issues like the product price, marketing strategies, sales targets and distribution policies. Often, it is seen that smaller companies sell their products to larger brands under the condition that their goods will be sold under the brand name, and the lesser known manufacturer will actuate a part of the profit that is incurred from the sales. Therefore, it can be concluded that a private label helps the company to not only control the pricing and other marketing strategies for a particular product, but also attract smaller manufacturers whose profit margins they can boost. In short, a well designed label with a logo goes a long way in helping the particular company to gain overall market control.

4) Lower Price: A lower price tag is equivalent to a higher profit margin. Products that have a private label attached on them are priced at a much lower rate compared to those that have a particular national brand. The lower the price, the better are the chances of its popularity among the consumers. A chain reaction is evident. If the quality of the product is good, and the prices are affordable, then it is obvious that the particular merchandise will record good sales figures and thereby increase and improve the profit margin of the company.

5) Exclusivity: Products that come with a private label are available in specific retail stores where they are supplied. Customers will not be able to buy these products either from a mega store, or over the Internet. Such exclusivity helps to authenticate the quality of the product and reduces any chances of adulteration or duplication. Thus adding a private label helps to build the trust among customers and guarantee them of high-quality of the product that is being sold.

Private labels play an important role in influencing the sales figures and building positive relations with the customers. Thus designers should always strive to make them unique and attractive.