Private Label,

How to Build a Winning Private Label Strategy for Retail Success

What is a Private Label product, and how is it marketed?

Private labels offer retailers across food and non-food a unique set of tools or assets to engage with customers. Private label products are high volume, consistent quality and normally competitively priced ranges that are marketed under the name of a particular retailer. As such these products are generally only available within stores owned or supplied by that retailer. Creating an ability to give customers another reason to shop in a particular retail chain helping grow sales and market share. Globally many retailers have clear strategies to increase penetration of Private label products to drive growth and increasingly we are seeing a transition to Own Brands as part of the customer focused shift and marketing.

Under a retailer’s brand, products are normally created by the retailers, in many cases working with executive chefs then commercialised using strategic partners or co manufacturers who own processing facilities. This market strategy benefits from high volume, simplicity of production, ability to globally source and through efficiencies of sourcing and production aims to increase sales, encourage profit growth, and distinguish retailers from their competitors by capitalising on brand loyalty through lower prices, high-quality products, and exclusivity.

To meet consumer demands, retailers must first understand the market landscape, research comparable products’ standards, understand industry regulations and requirements, and be updated with current consumer trends. And significantly, retailers would benefit from a private label branding strategy that advances their brand above that of their competitors.

Marketing private label products involve:

  • To consumers, the product should feel authentic and distinguishable from national brands.
  • Communicate brand values and deliver a quality product.
  • Market research is paramount, but innovation is vital. The market has shifted significantly to deliver customer focused solutions rather than just great tasting products

The Private Label Strategy for your business?

Recognising that many of the conversations on Private label are anchored to the major retailers the same principle or benefits can be applied to smaller businesses, think local independent stores, pharmacy chains, coffee stores or even the rapidly growing fast food sector. A successful private label branding strategy for your business may begin by expanding your product’s presence by entering the online retail space enabling access to more customers and building increased brand awareness. Research has shown that over the last 24 months, we have seen an accelerated growth pattern for online retail platforms and a steady increase in private brands. This trend is projected to continue. Your online presence reaches a significant portion of current and potential consumers.

Share the philanthropic projects in which your brand is involved with consumers and your product. Be transparent and use your marketing to connect with consumers about your brand’s values, not just what products you offer. Consumers are becoming increasingly inquisitive in the sourcing of food, its sustainability or positive impact on the community.

Additionally, ensure that the products you offer provide value in quality and standards.

Lastly, set yourself apart from your competitors by leading through innovation. Use market research to listen to your customers and provide what is missing in the market.

What are the benefits of Private Labelling?

Many of the best private label companies share these advantages:

  1. A higher profit margin

Most often, the motivation of private label products is to increase profit margins. You can manage how this product is marketed, distributed, and sold by selling products through your brand. The reputation and quality of your brand allow you to set the selling price of your product at your discretion.

  1. Being exclusive

The retail trend of exclusivity has clear implications for consumer behaviour. It allows retailers to use the consumer perception of the value of exclusivity to support the higher price of their product and gives them an edge over competitors.

  1. Unique branding

There is an element of investment that comes with having your brand. It allows you to rotate products under the same brand and find what works best for you.

  1. A defined marketing strategy

Retailers can move beyond marketing only the product; the brand can communicate its story, message, and identity.

What is the cost of Private Labelling?

The most significant expenses you will find when engaging in a private label Australia-wide are manufacturing, minimum order quantities, branding, and marketing. Research is advisable when exploring which manufacturer/s you will create a partnership with when producing your product. It is essential to establish whether you will be paying for the final product and shipping expenses or whether you will be paying for materials and labour. All aspects of the brand, from logo, packaging, printing, or strategy, may incorporate designers and include manufacturers to complete product assembly. When your product has made it through the manufacturing stage, one of the final costs comes from marketing. The marketing cost may match the manufacturing price, depending on the private label branding strategies and platforms you choose to employ. This ongoing cost will run alongside the product’s lifespan, maintaining a market presence, and adapting to market trends.

Building the Perfect Brand.

Your next question may be, what is private label branding?

Once you have an established product, you might focus on constructing the brand that represents it. Building your brand involves crafting its identity, creating a brand logo, bringing your brand into the online space, and demonstrating an online presence.

Share your brand’s origin with consumers, communicate where you are moving towards, and the values that will lead you there. Invite them to participate in this movement through the support of your brand. With an established identity, represent your brand in a way that feels connected to the foundation that is your story, creating a visual element for consumers.

With an established brand, it may be time to bring it online.

Online platforms, including websites or social media, allow you to engage with consumers, publish upcoming products, place marketing advertisements and offer an affordable way to reach consumers.

How will Prof. Consulting Group help with Private Labelling?

At Prof. Consulting Group, our team, in partnership with our network of researchers, will work with you to create a tailor-made strategy for your business. Our partnerships with manufacturers, domestic and international, grant us the ability to connect brand owners to the latest products and production capabilities. Our team has executed effective private label branding strategies with key industry retailers, and we have seen the results through exceeding target margins and consumer behaviour trends.

Our team will evaluate your business to ensure it performs at the optimal level and to locate any inefficiencies to be improved. Our team may achieve this through audits, contingency planning, and assessment of safety and standards.

We work to ensure your business is operating more sustainably and provide opportunities for your business to break into markets both online and in-store.


Consumer behaviour trends indicate that retailers’ brands are not only noticeably relevant in the retail market today but are also on the rise. Beyond providing products to customers, retailers use a private label strategy to build a brand that fosters meaningful relationships with their community. These brands focus not only on quality and content but also on sustainability and identity; they partner with consumers to build dependability.

A brand allows you to increase your profit margins, encourage consumer loyalty, control pricing and production, and have more control over your brand.

Prof. Consulting Group is industry-recognised for delivering high-quality consultation, has experience working alongside our international networks, and is a Private Label Manufacturers Association member. We offer high-quality and practical strategies that are tailor-made for your business to help you achieve optimal success in the retail market.

Move your business into the future of private label Australia and contact us today.

FAQs – Private Label Strategy

What can I sell as a private label?

Most consumer goods categories available through retailers have both brand and private labels. Types of product categories might include but are not limited to ambient food, cosmetics, household, frozen food, pet food, electronics, and personal care.

What does the future hold for private label brands?

Retailers’ brands are in a strong position going forwards. According to the research that continues to emerge, consumers are receptive to retailers’ transition from transactional to fostering an economic experience.

As customers prioritise being well-informed, supporting quality and brand loyalty, we observe a social transformation. The trajectory of retailers’ brands looks set to rise steadily.

Why do companies use private labels?

Companies often use their brand to increase profit and negate national brands’ additional production costs. But this isn’t the only reason. By producing products under their brand, consumers can build loyalty to the company through their products and brand identity, the opportunity for creative input, and more control over aspects such as marketing and pricing.

What is the difference between white labels and private labels?

A manufacturer may create an essential product they sell to one or numerous retailers. After this exchange, those retailers can put their brand names on the product, package them and sell them to their target market as their own, known as a “white label”.

Under a “private label, ” products are manufactured by a third party and sold exclusively through the retailer’s brand.

What Are Some Private Label Products You Can Sell and Promote?

Products under your brand align to your target market, profitable products, and which products will align with your business to help it grow. The benefit of controlling what products your brand puts out, from beauty products to food and beverages, is that you can advertise and promote them however you want. You can promote your private label products in-store, online, or through ad campaigns; promotion is in your hands.