Building a brand is paramount to many independent retailers’ success, especially when they compete with household name products or operate in niche industries.
An ideal way to attract customers near and far is to launch your own product line, a scenario that lends itself best to those who sell clothes, specialty foods, health and beauty products, pet goods, and other items across a large range of market segments.
These businesses are discovering that stamping their name on goods brings considerable competitive advantages in the marketplace. The turn toward selling custom products also highlights changing consumer sentiments and growing competition from e-commerce. Plus, new manufacturing options have made it more convenient than ever to create products targeted toward the needs and wants of the retailer’s target audience.
Exclusive, self-produced products help businesses grab the spotlight in ever-growing, highly saturated marketplaces, where dozens of physical and online retailers compete for a limited supply of customer dollars. In addition to decreasing price competition – you’re no longer selling a line of cookie-cutter products – those with branded supplies can create buzz to attract people to their brick-and-mortar and digital locations.
Those who have their own product lines also have the opportunity to drive business by introducing limited edition items that are on sale for a certain timeframe or while supplies last. This strategy can often lead to a rush on merchandise and leave open the option to reintroduce the product in the future.
Selling distinctive products allows retailers to directly address their patrons’ values and desire for authenticity and items that match their values and ethics. Smaller retailers can often identify tailored opportunities and developing trends that big corporations may overlook. For instance, a specialty coffee shop could offer a line of sustainably grown brews, while a café’s menu might include homemade vegan specialties. A local pet store could sell ethically sourced food, organic shampoo and toys made from recycled materials.
Larger profit margins are another factor driving independent retailer-owned products. Conventional retail models frequently involve relatively low margins, especially when selling popular, national brands. With unique products, businesses can eliminate some intermediary costs and gain a larger share of revenue. While product development requires upfront investment, successful private-label lines can generate significant return on investment over time.
Loyal and new customers who shop local and appreciate their personal relationships with a business will be especially motivated to support personally branded products, even if they are more expensive than similar items that don’t carry your insignia.
Building your own product line is not as costly a proposition as it was in the past. The emergence of contract manufacturers, white-label suppliers that produce goods that other companies can sell as their own and low minimum order quantities make investments more palatable. Digital design tools, e-commerce platforms and global sourcing networks have further opened the branding gates to all types of businesses. In an age where consumers can compare prices instantly online, retailers that sell the same products as dozens of competitors often struggle to stand out. Launching your own brand of products gives retailers something unique to offer customers, reducing direct price competition and creating a stronger reason for shoppers to patronize your business.
