Ultrachem Newsletter – Private Branding! Looks Do Matter!

Remember when private label “economy” brands were viewed as bottom-of-the-barrel products, packaged in black and white containers and stored strictly on the bottom shelf? Based on modern consumer trends, those days appear to be far behind us. The private-branded consumer goods market has evolved into booming international business. Using high-turnover consumer goods as the metric, private label brands accounted for 17% of global sales in 2011 and currently comprise over $90 billion in product sales in the U.S. alone (Nielsen, 2011). Rising national brand prices and a tough economy are certainly drivers for the trend, but they do not tell the full story. The store-brand image has progressed into standards on par with national brands through improved packaging, a closer focus on quality, and enhanced market positioning. The customer’s perception of store-brand quality and value has grown more stable leading to a higher willingness to try alternative goods as a result of the aforementioned improvements.

But what does this mean for private branding opportunities within B2B sectors? Is this information at all relevant in industrial markets? The answer is a resounding yes! Although there is a clear-cut difference in convenience goods like toothpaste and shopping/specialty goods like expensive filters for industrial systems, the same rules apply regarding consumer perceptions and acceptance of alternative brands. Boiled down to basics, if a product has a coherent, attractive marketing package that emanates quality and imparts confidence, it will make the process of building trust with the consumer and subsequent order generation progress much smoother. With a little product planning and marketing elbow grease, rebranding with a custom private label solution can be a powerful tool in facilitating sales to the consumer and giving your company, regardless of size, a strong identity within your market. If you trust the product you stand behind and are proud of the image it presents, the odds are your customers will be, too…

Win the day!

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