How can retailers leverage the private label market for differentiating their brand?

Do you know what is common with brands like Amazon Essentials, Halogen, Universal Thread, etc.? They all are exclusive apparel brands from big retailers.

With increasing consumer demand, retailers can leverage the private label market as a growth strategy and differentiate their brand and earn customer loyalty in the marketplace.

Private label brands include products that are manufactured by a third-party i.e. a private label product manufacturer and then sold under the brand name of the retailer. It is a leading growth strategy for small and large retailers who can penetrate their private brands into the market, with price and quality differentiation.

Today, the private label market has evolved from its initial objective of giving a low-cost option to the customer to aiming for brand loyalty and quality. Stiff competition and increased demand in the market are the major growth drivers.  

Private label branding – a winning strategy for retailers

Private label apparel production gives retailers an opportunity to establish their brand even when they don’t have a product design from scratch.

These products offer generic styles and can be easily modified using label tags and brand logos.

Retailers who wish to introduce their line of private label apparel can contact a private label manufacturer who can help them get started. These private label manufacturers can help retailers establish their brand with complete product lifecycle management from the initial contact to a wholesale ladies clothing supplier to the final production of the clothing brand.

There are several reasons that lure retailers into private label fashion and apparel brands.

• Retailers can enjoy higher gross margins that lead to higher profits.

• Total control over cost, material, and quality.

• Opportunity to build brand loyalty for the product as the product is available exclusively on the store that produces them.

• Faster agility to respond to trends due to quicker customer feedback and more control over price and manufacturing process.

Some retailers also sell third-party brands along with their private label brand which increases their potential sales and profits. For example, Amazon sells fashion and apparel products from different brands alongside its private label brand – Amazon Essentials.

Looking for private label brand manufacturers

To launch a private label apparel line, retailers need to leverage the expertise of a private label brand manufacturer. Finding a manufacturer can be daunting but it is worth the effort. When choosing a manufacturer, you should first ensure that the manufacturer has expertise in your product. For example, if you want to introduce kids’ garment line then it is better to work with a manufacturer who has experience in producing garments for kids.

You have to strike a balance between price and quality. Look for high-quality wholesale clothing manufacturers with a reasonable price or at least a price that fits into your budget. It is integral if you want to mark up your products at a sensible and feasible profit margin.

Also, you need to discuss the minimum order quantity. Remember, if the manufacturer does not support small-batch manufacturing then you might end up with unwanted inventory. Inquire about their shipping costs and whether they have contacts with wholesale ladies clothing supplier to ensure that you can easily acquire raw material.

Do some digging about the manufacturer through the internet and request their previous work samples before finalizing one.