{"id":3739,"date":"2023-07-18T22:50:31","date_gmt":"2023-07-19T06:50:31","guid":{"rendered":"https:\/\/vipcolor.com\/?p=3739"},"modified":"2023-07-19T11:47:47","modified_gmt":"2023-07-19T19:47:47","slug":"how-can-small-business-expand-their-business-with-the-private-label","status":"publish","type":"post","link":"https:\/\/vipcolor.com\/blog\/how-can-small-business-expand-their-business-with-the-private-label\/","title":{"rendered":"How can small business expand their business with the private label?"},"content":{"rendered":"<p>A private label refers to a product manufactured by one company and sold under another company&#8217;s brand name.<\/p>\n<p>In other words, the manufacturer produces the product, and the retailer or brand owner puts their name on it and markets it.<\/p>\n<p>We can find private-label products in various categories, including Food and Beverage, health and beauty, apparel, electronics, and more.<\/p>\n<p>The private label market has proliferated in recent years as more and more retailers and manufacturers invest in this area. While it is challenging to determine the exact size of the private label market, here are some statistics that provide insight into its growth and popularity:<\/p>\n<ul>\n<li>According to the Private Label Manufacturers Association (PLMA), private-label products accounted for $152.3 billion in sales in the United States in 2019.<\/li>\n<li>The global private label market size was valued at $161.6 billion in 2019 and is growing at a compound annual growth rate (CAGR) of 4.8% from 2020 to 2027<\/li>\n<li>In Europe, private label products have a market share of approximately 40%, with the highest penetration in the United Kingdom, Germany, and Spain.<\/li>\n<li>Private-label products have seen significant growth in online retail, with e-commerce sales of private-label products expected to reach $64 billion by 2027.<\/li>\n<\/ul>\n<p>Small businesses can partner with retailers to sell their private-label products.<\/p>\n<p>This arrangement is mutually beneficial as the small businesses can leverage the retailer&#8217;s<\/p>\n<ul>\n<li>Distribution channels<\/li>\n<li>Customer base<\/li>\n<li>Marketing resources to expand their reach and grow their business.<\/li>\n<\/ul>\n<p>However, starting a private label business can be challenging and complex. Several factors can prevent business owners from pursuing this opportunity. Here are some of the common barriers to starting a private label business:<\/p>\n<h2><strong>Capital Investment: <\/strong><\/h2>\n<p>Starting a private label business typically requires a significant investment in product development, manufacturing, packaging, and marketing. Many small business owners may lack the capital to fund these costs.<\/p>\n<h2><strong>Lack of Expertise: <\/strong><\/h2>\n<p>Developing a successful private label product requires product development, manufacturing, quality control, marketing, and sales expertise. Business owners may lack the necessary knowledge and skills to execute this process effectively.<\/p>\n<h2><strong>Competition: <\/strong><\/h2>\n<p>The private label market is becoming increasingly crowded, and there may be significant competition from established brands and retailers. Business owners may struggle to differentiate their products and build a customer base in this competitive landscape.<\/p>\n<h2><strong>Supply Chain Management: <\/strong><\/h2>\n<p>Private label products require effective supply chain management to ensure timely delivery, quality control, and cost efficiency. Hence, managing a complex supply chain can be challenging for small business owners who lack the necessary resources and infrastructure.<\/p>\n<h2><strong>Regulations and Compliance: <\/strong><\/h2>\n<p>Private label products must comply with various regulations and standards, such as safety and labeling requirements. That means business owners must ensure their products meet these standards and obtain necessary certifications or approvals.<\/p>\n<h1>Labeling to the rescue<\/h1>\n<p>Labeling is one of the challenges stopping small businesses from winning in private labels.<\/p>\n<p>Yes, labeling.<\/p>\n<p>Many of our clients relied on outsourcing labels before they turned to in-house. We heard similar complaints in our fact-finding,<\/p>\n<ol>\n<li><strong>Long lead-time.<\/strong> It takes days from design to production of the pre-printed labels. They lost a deal because they could not respond to the RFQ timely.<\/li>\n<li><strong>Lack of customization.<\/strong> The customer may change their labels for many reasons, necessitating a reprint. This change results in expedited costs and extra delays.<\/li>\n<li><strong>MOQ:<\/strong> On the one hand, the business needs to meet the Minimum Order Quantity for its outsourced labels. On the other hand, their customers order in small batches and may change their labels on their next order. This results in the extra cost of labeling from order, storage, and disposal of unused labels<\/li>\n<li><strong>Wastage:<\/strong> Outsource labels have fixed designs and are ordered in MOQ. Unused and non-compliant labels are business risks.<\/li>\n<\/ol>\n<h1>How exactly does printing labels In-house help?<\/h1>\n<p>Over the years, our labeling solutions have helped our clients scale their niche businesses through private labels. With a color label printer, they achieved a competitive advantage with speed, cost, risk management, and compliance.<\/p>\n<p>Foremost, when they receive an RFQ or deal, they can churn out their quote once they understand the customer&#8217;s requirements. A creative sales team can respond with the delivery time and costs as they control the labeling workflow from proofing to mass printing.<\/p>\n<p>Furthermore, the entire labeling process is digital. Businesses can handle last-minute changes to the label design easily. They can print instantly in small batches in the exact quantity needed. That means no waste and better risk management. All these contribute to better cost control.<\/p>\n<p>In conclusion, small businesses can grow their revenue exponentially through private labels. With the proper process and labeling workflow solutions, they can easily win and scale.<\/p>\n<p>Getting started is simple. Start by scheduling a <a href=\"https:\/\/vipcolor.com\/about\/contact-us\/\">product demo<\/a> today.<\/p>\n<p>We will gladly guide you on the best choice of printer for your application.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A private label refers to a product manufactured by one company and sold under another company&#8217;s brand name. In other words, the manufacturer produces the product, and the retailer or brand owner puts their name on it and markets it. We can find private-label products in various categories, including Food and Beverage, health and beauty, [&#8230;]\n","protected":false},"author":2,"featured_media":3996,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-3739","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-self-education"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.0 (Yoast SEO v24.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How can small business expand their business with the private label? - VIPColor<\/title>\n<meta name=\"description\" content=\"Learn about the private label market and how small businesses can take advantage of this opportunity to grow their revenue. 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