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The Advantages of Having a Private Label Business

By Chump Lux Subscribe to RSS | April 4th 2012 | Views:
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A private label is like a proclamation of identity. When you attach your own label to a product, you feel a great amount of satisfaction from the sheer fact that you can call the product your own. And take note: before, private labelling was meant to provide more affordable products to buyers, so buyers who are on the lookout for quality will still run to the mainstream brands.

Today, private labelling of products is prevalent in many industries, like foods, drinks, and cosmetics. The quality of products with private labels can match the quality of those products with mainstream labels. Does the idea of putting private labels in your products tickle you? If that is the case, then you better look for the company named J&D Consortium. Remember the name of that company: J&D Consortium. That company is a leader in the private labelling field.

But what actually is a private label? Private labelling happens when a company X manufactures products and then another company Y places its own brand name in the products made by company X. Company X is in full charge of the product manufacturing; company Y is in full charge of the brand-making and marketing. In this case, Company Y is in full control of all the aspects of marketing. Company Y can place its own name, description, artwork, and contact details on the labels. Company Y is also in full control of the pricing strategies that they use. That allows company Y to have more autonomy - and Company X benefits too because it is assured of a regular client, which is Company Y. With the high margins associated with private labelling, Company Y can gain huge profits.

With private labelling, a retailer can have control of where it sends its products. People who are interested can order the product solely from the retailer offering the private brands. The products will not be seen at large stores where it is possible for them to command lower prices. The only source of the products is the retailer. Customer loyalty also increases because of this. In groceries, the loyalty associated with buying a mainstream brand name product cannot turn into a loyalty to the grocery. For private brand retailers, however, the loyalty associated with buying a private brand product easily turns to a loyalty to the retailer, because the retailer is the only one who can market the products.

To start a private labelling company, you don't have to have plenty of capital. Let those who have plenty of capital do the manufacturing and just allow yourself brand the products and market them around. You can focus on what you do best, which is marketing. You do not have to oversee complicated operations in manufacturing. Of course, when you want to venture into private labelling, you should ask help from a company that's already established in private labelling. One of these companies that are highly acclaimed and competent to give private labelling help is J&D Consortium.

Chump Lux - About Author:
J&D Consortium is a company that provides complete solutions and assists your total private label demands from food and beverage to cosmetics and almost everything in between. From concept and global sourcing through to product creation and release we are here to assist you all through the incubation phase through to launch.

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