Private brand is an answer to manufacturers’ dominance by retailers. But developing in-house brands is the biggest challenge

Marie-Louise Jacobsen

First I will let you ponder on this: what makes a brand? At it’s most basic, a brand is simply a product or a collection of products, however, successful brands are those which can create a unique set of values who’s emotional or functional attributes exert a strong influence over consumer’s decisions to purchase. The most effective brands have an almost visionary quality about them. They present to consumers, their employees and even their competitors an imagined ideal future; they often can’t enunciate themselves. They guide. They imprint.

Branding is about being remarkable. Branding answers the question of why a company/product exists. Branding is the heart, the soul, and the essence of a company/product. Quite simply a brand is an image that people trust, that people aspire to. In a global fashion perspective, when we talk about the ‘rich cousins’ in the branding market we talk about the Prada, Gucci, Armani and the likes. When we talk about fast fashion brands we talk about the Zara, Mango & H &M. When we talk about private brands (PB) these are created to emulate the real brands but with several advantages. For the consumer it could be - good looking fashion at a very good price points, wide range of sizes and/or good fit, good choice of colors etc. This is because a (PB) is created specifically for his or her consumer profile/demographic. For the retailer, (PB) brings better profit margins, gives the retailer a point of differentiation (a brand which nobody else has) and is flexible to create promotions with it. Buy 1 get 1 free or Buy 2 get a GWP, or % off, etc.

When a retailer thinks of creating a private brand, a couple of things should be kept in mind. For a retailer, a brand is a promise - a promise that it will deliver the same important benefits the same way, consistently, time after time; and that they’ll deliver high perceived value to their target audience every time the customers buy and use their brand.

Creating a Private Label

Successful Private Brands or Labels go through the same rigorous disciplines that real or known brands do, and here are the 12 steps to brand creation:

• Define Your Mission
• Set Your Goals and Expectations
• Decide on Your Concept
• Create a Brand Name, Logo, Labels and Swing Tags
• Choose the Design and Lifestyle of the Brand
• Development of prototypes
• Range build-up of the Brand
• The selection of the fabrics, materials, components that will determine the quality of the Brand
• Selection of the manufacturer - Packaging & Shipping
• The production lead times, which also influences the speed of the Brand to a store
• The Quality Control
• Master-mind the Sales & Marketing Strategies

Placing Private Labels

A successful brand is one that keeps the promise so that customers will remain loyal. It involves much more than a name, logo and slick marketing. It really encompasses every customer contact point. In short, the total brand experience has to work. The next thing to think about is what place will the Private Brand take in your retail store? This is a very important question to ask because in many cases, retailers use their Private Labels or Brands to create Sales or Promotions. In fact, a private brand should be ‘pampered’ more than that of a local or national brand for the pure reason that if done well, it brings your store some exclusivity and a brand presence that no one else has. Your Private Brand should be your ‘Brain-child’ as such given the very best conditions to succeed.

Three distinctive roles

When considering embarking on the Private Brand or label business, my best advice is the following; depending on the size of your retail store or stores a couple of things can be considered. A Private Brand or Label can play three distinctive roles, each bringing their own benefits. To consider, a retailer can have a brand/label that stands for an entry price point. This is a brand that is a basic item with good price value everyday of the year.

The other consideration is to have a second brand that is medium priced, but is used mainly for year-end sales and/or special price promotions.

Third and most important of all, is to have a Premium High Quality Brand, that lifts your merchandise assortment and brings exclusivity and luxury to your store. Retailers can use one or the other or best still all three private brand options. At the end of the day, it is what your customers are looking to buy from you that really count. If you feel that creating and developing a/or some Private Brands for your store will enhance customer loyalty and higher sales… then get going on it now!