If there’s one thing private labels can do which national brands might not be willing to, it’s brand customization. Why? Because it would prove to be costly for the big players to do so. Whereas, private labels can manage that without breaking the bank.
Customization serves a small market
When it comes to private labels, customization serves a need of a small market. National brands do not usually cater to a highly specific market segment because of its size. You don’t expect a coffee brand like Folgers to come up with an exotic Armenian coffee product to serve the cravings of a small population having a peculiar coffee preference.
Private labels, on the other hand, can customize. For example, one coffee specialty store can serve this particular taste of a specific market segment. This coffee specialty store already carries its own private label along with other coffee products. But it can offer that Armenian coffee product by finding a supplier for it, producing it at a small volume of 500 packs, depends on his agreement with his supplier. No market research involved. Just simple research on sourcing the right supplier.
Customization means brand experience is more personal
National brands seem to have alienated themselves from their consumers. Sure, they can engage in doing a lot of social responsibility causes which, again, costs a lot whether they admit it or not. Gone are the days when powdered juices come in ceramic jars that may be repurposed as cookie jars.
On the other hand, private labels can customize their products, giving a personal brand experience to their consumers. They have room for innovation which they can quickly use on their products, giving their customers a much more personalized brand experience than national brands can. A novel example would be a private label pet food whose string sack packaging features a dog leash. Anything is possible!
Customization adapts to customer’s changing needs
Private labels enjoy the flexibility of adapting to the changing preferences of their customers. Many PL owners are also retailers and they get feedback readily from their customers. The beauty of this dynamic is that private label owners can act on these inputs and adjust their products based on the changing needs of their customer base. Is there a national brand that can do the same?
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