Private Label Brands May Be Your Ticket to Expansion

Published : July 11, 2014

label-brands-expansionSometimes having a personalized service or an over the top product is simply not enough to keep a business in the black. When your business is suffering from slumping sales or fulfillment and distribution woes, you need to get creative.

Looking into licensing fulfillment or private label brands offers you the ability to use your resources to connect with already established brands that can carry you up to the next level, giving your company that boost it needs in. Consider the following areas as a next level move if you are already well established in mass market manufacturing, but struggling to stay ahead of your expenses.

Licensing Fulfillment

In a nutshell, licensing fulfillment is the act of promoting and providing a product under the guise of a well-established brand name. Entrepreneur gives a good example with the Hot Dog Slic’R that was licensed to Wal-Mart and is now sold side by side with hotdog buns, where it is a top selling item.

By latching on to an existing, successful company brand, a small business with an entrepreneurial spirit can move product and services along at a much more rapid rate of speed. Companies interested in connecting via licensing fulfillment can expect a positive upsurge of sales due to many factors.

There are six elements affected by licensing fulfillment:

  1. Brand and product recognition
  2. Improved and instantaneous credibility and authenticity
  3. Increased number of distribution channels
  4. Decreased costs for in-house marketing, advertisement, fulfillment and distribution
  5. Entrance into new areas of the global marketplace
  6. Strategic skill and knowledge only available through long term industry experience

Just like being tagged onto Oprah’s ever-famous list of herFavorite Thingscan skyrocket a product or service, licensing fulfillment allows businesses of a smaller scope to hop on the coattails of those more established brands.

Private Label Brand

According to Manufacturing.net, private label branding is in an upswing. Data shows that from 2000 to 2011, private labels in U.S. households increased from 18 to 27 percent for reasons that included:

  • Economic upswing following the recession
  • Customer loyalty strategies
  • Marketing strategies on the part of retailers

It all began, however, when retail chains focused their attention on creating private labels for their own brands—a move that successful strengthened customer loyalty. That success was due, in no small part, to price.

Privately labeled goods tend to be less costly to manufacturers, and therefore to end customers, thanks to a minimal advertising and marketing budget. The cost-cutting encourages customers with limited funds to opt for private labeled goods.

As a result, manufacturing producers benefit from higher profit margins for a win-win across the board.

Why Choose Licensing Fulfillment or Private Labeling

Businesses interested in going vertical with their products and services may find that they must move beyond the doors, whether virtual or brick and mortar, of their business to succeed.

While cooperating with the competition is not necessarily the best business move, finding those companies open to licensing or branding can make all the difference for a manufacturer.

Just as businesses that utilize experts or outsourcing in order to improve the success of the entire end-to-end team, licensing fulfillment or private label branding gives you access to the brand name and additional resources you need to be successful.

If your manufacturing company hasn’t been able to achieve the success you’ve hoped for in the sales and marketing of your products, don’t be afraid to enlist with an expert in those areas. It will take a weight off your shoulder and allow you to put your focus and energy back on what really matters— product development and customer satisfaction.

Looking for a better order fulfillment solution?   Click here to contact Aero and learn how we can help.

Topics: Supply Chain Logistics

Get the Guide Now to Build a Sound Warehouse Operations Strategy

Subscribe to Email Updates