Private brands play an increasingly important role in the growth in retail.
With the digital age giving a price comparison just a click away, and the changing and competitive retail landscape, retailers and brands are searching for a way to differentiate, cut costs and bring products quicker to market. Private brands satisfy all these aspects and cultivating a strong private label/ brand can be a critical part of a retailer's strategy.
A powerful brand differentiator
Private Labels are no longer "generic" brands. They're focused brands.
Private label used to be perceived as a generic brand that consists of lower prices and quality goods. But that is something of the past. Even successful grocers such as Trader Joe's have tiered their private labels as "good, better, best" qualities and priced products accordingly. Traditional wholesale brands are investing in their own retail channels as they grow their direct-to-consumer business.
Retailers are also increasingly using their own brands to stand out from the competition. Nowadays, retailers actively market these brands and see private brand portfolios as corporate assets, not just side projects. It's more than just a private label, it's a private brand.
Maderight Makes Private Label Easy
Now you may be wondering - how do I start my own private label? We've developed an easy private label program to help your company and collections grow. The Maderight product catalog includes everything from elevated basics to fashionable highlights. It includes on-trend, curated items that can be customized in our product builder, labeled, and manufactured quickly. The main benefit is that you'll save time on manufacturing and design, and find apparel that serve as inspiration pieces. We release new on-trend products often, and are available for you to customize materials, labels, sizing, trims and cuts within the Maderight platform.
Growth of Private Label in the Apparel Retail Landscape
Private labels are nothing to ignore as millennials have greater buying power and have less loyalty to brands, and as private labels account for more than 30% of U.S. consumer sales. According to the NPD Group's Retail Tracking Service, nearly a third of total apparel dollar share is spent on private label, and just over a third of the units sold are private label. The data also shows that private label's dollar share of apparel grew 1% while unit share increased by 3% since 2016. Both unit and dollar growth for private label apparel grew at a higher rate than national brands. Three out of four consumers have positive reviews on private labels, which erases the times when private label was viewed as just "generic" and "low quality.'
> > In world of price comparisons, private label helps retailers control price, marketing, positioning, and strategy.
A well-executed private brand strategy can drive growth. Retailers can control every aspect of the brand - from pricing, positioning, marketing, and activation. One of the biggest challenges in retail is price comparison, and private labels allow retailers to focus on what matters to their consumers. Whether it's sustainability, quality, or price, there is opportunity in well-designed private brands.
Large retailers can carry items that competitors also carry, but private label offers the differentiator that cannot be compared from store to store. This demand for differentiation drives the need for more private label.
The Amazon Effect
Everyone knows the Amazon Effect on retailers and brands, but that effect only develops as Amazon is taking on private labels to exponentially grow its offerings. 86% of the company's private label strategy is based in the clothing, shoes and jewelry categories alone. Amazon's conquest to be a major fashion house has the advantage in its consumer insights and visibility into consumer patterns. However, Amazon handles their private labels as "secret brands" since the company does not consider itself the fashion experts and detaches its ownership of private label brands with its parent company. To compete with the power of data, brands and retailers should take note of Amazon's private label strategy.
Ready for disruption
The private label arena is ready for disruption and Maderight is here to take that first step into making it streamlined and straightforward. Check out our Private Label program and get started on your project today.