Develop Private Label Sales for Retail Chains
A supplier reached out to us with a high trending product looking to develop retail business. The market for this product already had some major brands, which were dominating the current market share.
How to take sales from established brands in the market?
Rather than going head on with the major brands and supporting an entire branded sales program, private label opens up many more opportunities with much lower cost to capture market share. With our companies’ previous success in launching private label programs for major retail chains, we were able to use our relationships to meet with buyers at large retail chains interested in expanding their private label portfolio. The chains were very interested in developing private label programs, which increases the brand loyalty to their stores. The supplier we represented had a higher quality package and product, which exceeded the current brands in the market. Since the cost is much lower in launching a private label, compared to a branded product, the supplier was able to offer a much lower cost to the retailer. Therefore the retailer could sell a higher quality product at a lower price than the major brands, providing value to customer, retailer, and supplier.
The private label program was a success for supplier and retail chain, by providing brand loyalty to the chain and continued sales growth for the supplier. The supplier's private label sales now exceed their branded sales by almost 25% and continues to grow annually at 10%.
For additional information contact Hope DeLong, 561-309-7098, firstname.lastname@example.org.