Why Retailers Need Product Data Management for Private Label Productshttps://specright.com/wp-content/uploads/2020/08/private-label-1024x683.jpg 1024 683 Specright Specright https://specright.com/wp-content/uploads/2020/08/private-label-1024x683.jpg
The push for private label products is evidence of the current era of personalization. Personalization creates a level of exclusivity, something more than what can be found and purchased just anywhere. Retailers are taking note of consumer preferences for personalization, exclusivity, and value, and using it to their advantage by giving their own private label products a much-needed (and extremely noticeable) makeover.
The result: private label products that go beyond the generic packaging and labeling of the past and embrace the status of the retail brands they represent.
Because of this more individualized approach to private label products, retailers and manufacturers are facing greater challenges to manage product specs. To take advantage of the many benefits of private label products and reduce the headaches associated with product labeling and packaging, organizations are turning to product data management software.
The Challenge: Increased Complexity with Product Packaging and Label Data
In decades past, store-label products were displayed with plain packaging and branding that upheld their “generic” status. These products were often less expensive than their name brand counterparts, and believed to be of lesser quality.
This is no longer the case, however, as more stores are doubling down on giving their private label products a much-needed facelift to make their less expensive alternatives look more appealing on store shelves. The tactic has worked for many retailers, with store brand sales amassing a whopping $4.9 billion more than national brands in Q1 2020 alone.
This is great news for retailers who enjoy greater margins on private label products vs national brands, but it also poses several challenges created by complex product packaging and label information:
- For starters, many retailers are dressing up their private label products to look similar to those of larger competitors. If this is your strategy, then it will require a keen eye on any changes that national brands make to their packaging to keep up.
- It also requires unique designs for every private label product, especially if you’re mirroring those of other brands. This could result in creating a variety of new specs, from package size and shape, to artwork.
- There’s also room for confusion when making changes to private label products when ensuring everyone is working from the latest version of specs. Because private label products often require higher minimum orders, companies must be certain they’re ordering the correct version of a product to avoid costly mistakes.
The Solution: Product Data Management at the Spec Level
Because there are multiple teams involved in developing private label products (R&D, artists, quality control, procurement, third-party vendors, and more), coordinated efforts are essential for a successful project.
Product data management software and specification management can provide the needed single source of truth to oversee, manage, and share product data across organizations. The Specright platform takes it a step further by giving users visibility into product data at the spec level to view additional insights like vendors, ingredients, manufacturers, product label data, and other information related to a product.
Take a deeper look at what might be needed to streamline and improve your private label packaging efforts.
Download our ebook and discover how Specright is revolutionizing product data management.