How to Reach The Top with White Label Products
How Popular White Label Products Really Are
If you’ve been reading blogs, then you already know how White Label works and how you can use it to smash competition. But there is so much more to White Label than just being an alternative branding method to beating the competitor.
White Label has been reaching popularity levels previously unseen, and it’s proving to be a lucrative and trendy business! But to who exactly? The answer is simple: The Millennial Generation.
In a study by Cadence Consulting Group, 54% of millennials said their choice of retailer is influenced by the private labels offered. Moreover, 60% thought that their chosen retailer’s white label products were better than other alternatives. A further study discovered that approximately 50% of millennials were open to buying private-label products in any category, with 48% of respondents saying that they expected to buy more in the next 12 months.
This is a crucial nugget of information to take in for any business or entrepreneur looking to take advantage of White Label. The Millennial Generation has finally left college and is now fully entering the workforce, so of course they are now hitting their maximum consumer potential. Anyone who is looking to build a loyal and lasting consumer base needs to get Millennials while they’re still relatively new to the workforce (and new to their purchasing power).
The increase in popularity of White Label products has had a colossal effect on the online market, and in particular, Amazon. From 2016, sales have increased from $94 billion to $118 billion in 2018 for Amazon marketplace sellers, an increase of 25%. Along with the massive sales, the number of new sellers that joined Amazon in 2018 was also astronomical. This figure stands at over one million, with just over 80,000 coming in the U.S. This coupled with the statistic that e-commerce is growing 23% year-over-year proves that it can be a lucrative market to involve yourself and your business.
Knowing the facts of how popular white label has become is all well and good, but why exactly? It simply isn’t just Millennials. There are many more reasons why, but none are more influential than the following three:
If a business were to design, build, manufacture and launch a product, it could take years of time and a substantial amount of money to get into buyers’ hands, while the use of white labeling can reach the same end result within weeks.
This means that the cost of production is massively reduced, which can then be reinvested into another part of the business.
Lastly, with white label products, the seller is able to sell the goods at any price they want. They can add value to the customer by reducing the costs as supermarkets do, or they can go for maximizing profits and their ROI (return-on-investment) by setting a higher price.
And Don’t Underestimate Brand Loyalty
Another big factor in white label’s popularity to note is the openness of younger buyers - who are more likely to become repeat customers compared to older consumers. Older consumers maintain a stronger brand loyalty to the brands of their youth, which means they are less likely to try out the new product with the help of white label. Younger buyers are more open to try new brands and products, especially with their overall purchasing power being lower in comparison to the older consumers, and traditional brands may prove to be not worth the purchase if a cheaper alternative were to present itself.
Now that you know how to approach the white label market, go out there and reach the top! Whether you use white label, private label, ecommerce, reselling and any other method to get your product out to the customer, be sure you take a little time for some reading and research to ensure you hit the target and push your business up to greater heights!
This article was originally provided by The White Label World Expo. For more information on The White Label Expo in Las Vegas, visit the link here.
Tickets to the event are free! Register here for your Free Ticket.
Hits: 5846 | Leave a comment