With the economy moving the public to lower cost products is it time to review your private label strategy?
Today’s post is from our SafeSourcing Archives
Three years ago the Wall Street Journal published an article about how the economy is forcing consumers to consider lower priced stores and goods to save money (Article Link). Since that time major retailers such as Kroger’s have invested heavily into private label brands that consumers trust as much if not more than the National brands they used to buy. Just announced in June were three brand new private label store brands from Kroger to bring in quality products at a lower price point.
In today’s blog we will be looking into some new areas of private label sourcing you might not have thought about previously.
Services – One of the areas that companies do not always think of for private label sourcing are services. Many of these services deal directly with the design and marketing of the private label products themselves helping to develop campaigns for the retailer. There are other services, however, such as Kosher services and product development services that can also be sourced.
Product Ingredients – In some cases the retailer manufactures or is considering manufacturing their own private label products and the raw materials needed for those products need to be sourced. Flavorings, chemicals, fragrances, pharmaceutical ingredients and organic ingredients are just some of the items that can be sourced.
Supplies and Equipment – When it comes to private label products there are also unrelated equipment and supplies that are needed in order for the inventory to get to the consumer. Advertising vehicles, pallets, shelving, signage, coolers and freezers, and doors and curtain systems are just a few of the many types of connected purchases which are necessary in order for private label products to be sold.
Not For Resale – This area of private label spend is growing larger every day as more retailers are beginning to offer food and/or beverages in their stores. Towels, cups, bags, trays, paper products, and stretch wrap are all additional areas of private label products which can be sourced on a regular basis.
Whatever your private label Sourcing need is, the economy is quickly demanding that companies begin to pay more attention to the mix of products they source for their customers. For assistance in sourcing these categories for your business, please contact a SafeSourcing Customer Service Representative.
We look forward to your comments.