Private label is a quickly growing segment in the retail industry. WWD reports that private label accounts for 30 percent of retail sales in certain retail categories, including: technology, accessories, housewares and apparel. In fact, according to WWD, “nearly a third of total apparel dollar share is spent on private label, and just over a third of the units sold are private label.” As a result of this segment’s unparalleled growth, retail buyers are increasingly interested in sourcing private label brands at trade shows. This means that there are more opportunities than ever for trade show exhibitors to succeed with private label brands.
If you sell private label products or are considering branching out into a private label brand, here are three ways to build your business at trade shows.
#1. Focus on the Quality of Your Inventory
Buyers only want the best products to be sold under their brand’s nameplate. Although pricing is a big component of private label sales (and we’ll talk about that in a moment), product quality is the other half of the private label equation. It’s a given that your private label products need to be priced low enough for buyers to see how they will help them make margins, but quality is another key differentiator when it comes to selling products that buyers can visualize gaining traction for their brand. Be ready to talk about the quality of your private label, and to share information such as:
- Your products’ ingredients or components
- Where your products are manufactured
- Key selling points about the inventory that retailers can relay to their customers down the line
- What differentiates your products from your competitor’s products.
Like in retail, information is an asset when selling private label products at trade shows. Make sure you give your booth staff sell sheets with the information they need to sell your private label products and train them well, so they are ready to relay important product information to buyers.
#2. Offer Exemplary Product Packaging
Private label products need to essentially sell themselves, since they don’t come to the retailer with the brand recognition that merchandised goods are able to generate over time. Because of this, packaging is an important selling point for private label products. Whenever possible, offer buyers more than one packaging option for your products. Since buyers have varying branding needs for their respective businesses, you should offer packaging options that appeal to a wide variety of brands — especially if you sell private label cosmetics or personal care goods, in which case packaging is a huge draw for your clients’ customers.
Remember… buyers need to be able to see how your private label products will help strengthen their brand, so offer them packaging options that reflect a wide range of branding aesthetics.
#3. Market Your Items as Margin-Builders
Retailers look for private label products that will provide them with a competitive edge when it comes to generating revenue. Show buyers how your products will help them make margins by providing them with information such as your product’s manufacturing cost, MSRP and how past clients made a profit using your inventory. Entrepreneur reports, “You need a product that will sell at five to six times its manufacturing cost to have room for the extra discounts required. Most ideal private-label products are easy to produce in volume and inexpensive to manufacture.” So, you need to price your products low enough for retailers to make margins when they brand and resell them.
Private label products fill a different need for retailers than their branded counterparts. To have a successful trade show, you need to understand how marketing private label goods is different from selling other products. By focusing on quality, price, and packaging differentiation – as well as teaching your booth team these key selling points – you can appeal to buyers and lock down sales for your private label goods.
Take advantage of ASD Market Week’s 90+ free retail strategy sessions this July 29 – August 2, 2018 in Las Vegas.
By Jasmine Glasheen, RetailMinded.com